Washington State Employee Benefits Law: Leave, WA Cares, and Retirement

Washington State employee benefits law requires every employer in the state to provide paid sick leave, workers’ compensation coverage, and unemployment insurance, and to collect payroll premiums for the state’s paid family and medical leave program and the WA Cares long-term care fund. Larger employers without a retirement plan must also enroll workers in the Washington Saves Roth IRA program. Most of these rules apply whether you work full-time, part-time, or seasonally, and several of them have no employer-size threshold at all.

Paid Sick Leave

You earn at least one hour of paid sick leave for every 40 hours worked, with no annual cap on how much you can accrue.¹ Your employer only has to carry 40 hours over from one year to the next, so anything above that balance can be zeroed out at the start of a new accrual year.²

You can start using accrued leave on your 90th calendar day of employment. Covered reasons include your own illness, injury, or medical appointments; caring for a sick family member; and closures of your workplace or your child’s school ordered by a public official for a health reason.¹

Unused sick leave does not have to be paid out when you leave a job unless company policy says so. If the same employer rehires you within 12 months, your prior balance must be restored.¹

Paid Family and Medical Leave

Washington’s paid family and medical leave program is a separate insurance benefit funded by payroll premiums, run by the Employment Security Department. It covers the birth or adoption of a child, a serious health condition affecting you or a close family member, and certain military-connected events.

Premiums for 2026

Starting January 1, 2026, the total premium is 1.13 percent of gross wages. Employers pay 28.57 percent of that; employees pay 71.43 percent through payroll deduction.³ Employers with fewer than 50 employees do not owe the employer share but still must collect and remit the employee portion.⁴

Eligibility and How Much Leave You Get

You qualify for benefits after working at least 820 hours in Washington during your qualifying period.⁵ Maximum leave per 52-week period:

Family leave only: up to 12 weeks.
Medical leave only: up to 12 weeks, plus 2 more weeks for a pregnancy-related serious health condition (14 total).
Combined family and medical: up to 16 weeks, or 18 with a pregnancy-related medical condition.⁵

Your weekly benefit is calculated from your typical wages, up to $1,647 per week in 2026.³

How This Interacts With Federal FMLA

The federal Family and Medical Leave Act provides up to 12 weeks of unpaid, job-protected leave, but only when your employer has 50 or more employees within 75 miles of your worksite.⁶ Washington’s paid program has no employer-size threshold, so workers at smaller companies still get paid state benefits. If both apply, the leave generally runs concurrently, and an employer can require accrued paid leave to run alongside FMLA.⁷

WA Cares Long-Term Care Coverage

The WA Cares Fund is a mandatory long-term care insurance program under RCW 50B.04. Employers withhold 0.58 percent from every dollar you earn, including bonuses and commissions, with no wage cap. The premium is entirely employee-funded.⁸

To qualify for benefits, you must meet one of two vesting paths: pay in for at least ten years without a five-year gap, or contribute in three of the last six years before applying. Each qualifying year requires at least 500 hours of work.⁸

Once vested, you can access a lifetime benefit starting at $36,500, adjusted annually for inflation beginning in July 2024.⁸ It covers professional home care, assisted living, and adaptive equipment for daily activities.

Workers’ Compensation

Washington does not allow private workers’ compensation insurance. Coverage must come through the Department of Labor & Industries state fund or through an employer certified to self-insure.⁹ The system pays for medical treatment and wage replacement after a job-related injury or occupational illness. Both employers and employees contribute, with premium rates set by job risk classification.

Under Title 51 RCW, workers’ comp is the exclusive remedy: injured workers generally cannot sue their employer in civil court for a workplace injury in exchange for guaranteed no-fault coverage.¹⁰ Employers who let coverage lapse face stop-work orders and personal liability for injuries during the gap.

Unemployment Insurance

If you lose your job through no fault of your own, unemployment insurance replaces part of your income while you look for work. The program is funded by employer-paid taxes tied to each company’s claims history.

You need at least 680 hours of work during your base year, usually the first four of the last five completed calendar quarters. You must also be able to work, available, and actively searching. Benefits run up to 26 weeks, calculated from your two highest-paid base-period quarters, with a minimum of $366 and a maximum of $1,152 per week for claims filed as of mid-2025.¹¹

Health Coverage and Continuation After a Job Ends

Small businesses and individuals can buy health plans through the Washington Health Benefit Exchange, and those plans must include the ten essential health benefit categories required under the Affordable Care Act. Washington layers on additional mandates such as coverage for hearing aids and certain reproductive health services.

When you leave a job or drop below the hours needed for group coverage, continuation coverage keeps the plan going while you find something else. Federal COBRA applies to employers with 20 or more employees and lets you keep the group plan for up to 18 months after a job loss or hour reduction, at your own full cost.¹² For workers at companies with 1 to 50 employees, Washington requires insurers offering small-group plans to include continuation options, with duration and premium terms set between insurer and employer. The plan must also allow a spouse or dependent to continue coverage after the primary plan holder’s death or a divorce.¹³

Washington Saves Retirement Program

Washington Saves, established under Chapter 19.05 RCW, is an automatic Roth IRA program for workers whose employers do not offer a qualified retirement plan.¹⁴

Your employer must participate if it has operated in Washington for at least two years, has a physical presence in the state, employs workers for at least 10,400 hours a year (roughly five full-time employees), and does not already offer a qualified plan like a 401(k).¹⁵ Enrollment is automatic through payroll deduction unless you opt out, and you can change your contribution rate or stop at any time. The account is portable and follows you between jobs. Because the money goes into a Roth IRA, contributions are made after tax and can be withdrawn tax-free in retirement, subject to federal Roth IRA contribution limits.

How These Benefits Are Taxed Federally

Workers’ compensation benefits paid under a workers’ compensation act are fully excluded from federal gross income.¹⁶

Paid family and medical leave is more layered. Under IRS Revenue Ruling 2025-4, family leave benefits from the state program are taxable federal income, though not subject to Social Security or Medicare withholding, and the state issues a Form 1099 for benefits above $600. Medical leave is split: the portion funded by your own premiums is generally tax-free, while the portion funded by employer premiums is treated as taxable wages. If your employer voluntarily covers your share of the PFML premium, that pickup counts as additional taxable wages on your W-2.

Unemployment benefits are fully taxable as ordinary federal income. You can elect voluntary withholding when filing your claim.

Retaliation Is Prohibited

Washington law prohibits retaliation against workers who use these benefits. Protected activities include taking paid sick leave, filing a workers’ compensation claim, and using paid family and medical leave.¹⁷

Retaliation is not limited to firing. A cut in hours, a schedule change meant to push you out, a demotion, a denied promotion, written warnings tied to protected leave, or threats about immigration status can all qualify. Complaints go to the Department of Labor & Industries.¹⁷

1
Washington State Legislature. RCW 49.46.210 – Paid Sick Leave Authorized Purposes Limitations
2
Washington Department of Labor & Industries. Paid Sick Leave Minimum Requirements
3
Washington State Paid Family and Medical Leave. Updates
4
Washington State Paid Family and Medical Leave. Small Businesses: 150 Employees or Fewer
5
Washington State Legislature. Washington Code Chapter 50A.15 RCW – Benefit Eligibility
6
Office of the Law Revision Counsel. 29 U.S. Code 2611 – Definitions
7
U.S. Department of Labor. FMLA Frequently Asked Questions
8
Washington State Legislature. RCW 50B.04 – Long-Term Services and Supports Trust Program
9
Washington Department of Labor & Industries. Do I Need a Workers’ Comp Account?
10
Washington State Legislature. Washington Code Title 51 – Industrial Insurance
11
Washington Employment Security Department. Estimate Your Benefit
12
U.S. Department of Labor. FAQs on COBRA Continuation Health Coverage for Workers
13
Washington Office of the Insurance Commissioner. Continuation Plans
14
Washington Saves. About Washington Saves
15
Washington Saves. For Employers
16
Office of the Law Revision Counsel. 26 U.S. Code 104 – Compensation for Injuries or Sickness
17
Washington Department of Labor & Industries. Termination and Retaliation