Bill
SB 5378
SB 5378 expands FMLI grant eligibility for small employers and some school districts, offering up to 3,000 for temporary replacements or cost reimbursements to offset leave-related
SB 5378 – Summary
Overview
SB 5378 would amend RCW 50A.24.010 to expand access to grants under Washington’s paid family and medical leave insurance (FMLI) program for small employers and school districts, particularly small school districts. The bill is currently being considered in the Senate Committee on Labor & Commerce, with a public hearing scheduled at 10:30 AM.
What the bill would change
- Expanded eligibility for FMLI grants:
- Employers with 51 to 150 employees.
- Employers with 50 or fewer employees who are assessed all FMLI premiums under RCW 50A.10.030(5)(b).
- Employers classified as school districts of the second class (RCW 28A.300.065).
- Grant types and amounts (for an employee on family or medical leave):
- (a) A grant of $3,000 if the employer hires a temporary worker to replace the employee on leave for seven days or more.
- (b) A grant of up to $1,000 to reimburse significant wage-related costs due to the employee’s leave.
- (c) The possibility to receive (a) or (b), but not both, except that if the employer received (b) and the leave extends beyond the initial plan requiring a temporary worker, the employer may receive the difference between the $3,000 grant and the amount awarded under (b).
- Administrative and usage limits:
- An employer may apply for a grant up to 10 times per calendar year and no more than once per employee on leave.
- Eligibility requires written documentation showing the temporary worker hired or the wage-related costs were due to the employee’s use of leave.
- For employers with fewer than 50 employees that receive a grant, the department must assess all premiums for three years from the grant date.
- Grants are funded from the FMLI account.
- The commissioner may adopt rules to implement these provisions.
- The number of employees for eligibility is defined as in RCW 50A.10.030.
- Employers with an approved voluntary FMLI plan are not eligible for these grants.
Who would be affected
- Small to midsize employers (51–150 employees; some 50 or fewer in specific premium scenarios).
- Small school districts, including second-class districts.
- Employers seeking to manage wage costs and temporary replacements due to employee leave.
Procedural/timeline notes
- Introduced: January 20, 2025.
- First reading: January 20, 2025; referred to Senate Committee on Labor & Commerce.
- Public hearing: February 3, 2025, in the Senate Committee on Labor & Commerce at 10:30 AM.
Potential impact
- Financial relief for small employers and school districts facing leave-related costs.
- Encourages temporary hires to cover leaves and partially offsets wage costs.
- Adds administrative requirements (documentation, annual grant limits, and potential three-year premium assessments for very small employers).
- Does not apply to employers with an approved voluntary FMLI plan.
Compiled from official sources — confirm details with the bill’s official record.
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