HB 2485

H-2826.3
  HOUSE BILL 2485
State of Washington  69th Legislature      2026 Regular Session
By Representative Schmidt
Read first time 01/14/26.   Referred to Committee on Labor & Workplace
Standards.
1      AN ACT Relating to safeguarding the viability of the paid family
2  and medical leave program by restricting double-dipping with
3  employer-paid benefits and identifying methods for reducing errors
4  and detecting fraudulent or otherwise ineligible claims; amending RCW
5  50A.05.010, 50A.15.060, and 50A.35.030; reenacting and amending RCW
6  50A.05.010; creating a new section; providing effective dates; and
7  providing an expiration date.
8  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
9     Sec. 1.   RCW 50A.05.010 and 2025 c 178 s 1 are each amended to
10 read as follows:
11     Unless the context clearly requires otherwise, the definitions in
12 this section apply throughout this title.
13     (1)(a) "Casual labor" means work that:
14     (i) Is performed infrequently and irregularly; and
15     (ii) If performed for an employer, does not promote or advance
16 the employer's customary trade or business.
17     (b) For purposes of casual labor:
18     (i) "Infrequently" means work performed twelve or fewer times per
19 calendar quarter; and
20     (ii) "Irregularly" means work performed not on a consistent
21 cadence.
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1     (2) "Child" includes a biological, adopted, or foster child, a
2 stepchild, a child's spouse, or a child to whom the employee stands
3 in loco parentis, is a legal guardian, or is a de facto parent,
4 regardless of age or dependency status.
5     (3) "Commissioner" means the commissioner of the department or
6 the commissioner's designee.
7     (4) "Department" means the employment security department.
8     (5)(a) "Employee" means an individual who is in the employment of
9 an employer.
10     (b) "Employee" does not include employees of the United States of
11 America.
12     (6) "Employee's average weekly wage" means the quotient derived
13 by dividing the employee's total wages during the two quarters of the
14 employee's qualifying period in which total wages were highest by
15 twenty-six. If the result is not a multiple of one dollar, the
16 department must round the result to the next lower multiple of one
17 dollar.
18     (7)(a) "Employer" means:
19     (i) Any individual or type of organization, including any
20 partnership, association, trust, estate, joint stock company,
21 insurance company, limited liability company, or corporation, whether
22 domestic or foreign, or the receiver, trustee in bankruptcy, trustee,
23 or the legal representative of a deceased person, having any person
24 in employment or, having become an employer, has not ceased to be an
25 employer as provided in this title;
26     (ii) The state, state institutions, and state agencies;
27     (iii) Any unit of local government including, but not limited to,
28 a   county,  city,   town,   municipal  corporation,   quasi-municipal
29 corporation, or political subdivision; and
30     (iv) Representatives for employers of dockworkers who normally
31 work for several employers in the same industry interchangeably
32 through a collectively bargained agreement. Other than for their own
33 employees, employer representatives are not obligated to report
34 dockworkers who are not covered by the collective bargaining
35 agreement.
36     (b) "Employer" does not include the United States of America.
37     (8)(a) "Employment" means personal service, of whatever nature,
38 unlimited by any employment relationship as known to the common law
39 or any other legal relationship performed for wages or under any
40 contract calling for the performance of personal services, written or
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1 oral, express or implied. The term "employment" includes an
2 individual's entire service performed within or without or both
3 within and without this state, if:
4     (i) The service is localized in this state; or
5     (ii) The service is not localized in any state, but some of the
6 service is performed in this state; and
7     (A) The base of operations of the employee is in the state, or if
8 there is no base of operations, then the place from which such
9 service is directed or controlled is in this state; or
10     (B) The base of operations or place from which such service is
11 directed or controlled is not in any state in which some part of the
12 service is performed, but the individual's residence is in this
13 state.
14     (b) "Employment" does not include:
15     (i) Self-employed individuals;
16     (ii) Casual labor;
17     (iii) Services for remuneration when it is shown to the
18 satisfaction of the commissioner that:
19     (A)(I) Such individual has been and will continue to be free from
20 control or direction over the performance of such service, both under
21 his or her contract of service and in fact; and
22     (II) Such service is either outside the usual course of business
23 for which such service is performed, or that such service is
24 performed outside of all the places of business of the enterprises
25 for which such service is performed; and
26     (III) Such individual is customarily engaged in an independently
27 established trade, occupation, profession, or business, of the same
28 nature as that involved in the contract of service; or
29     (B) As a separate alternative:
30     (I) Such individual has been and will continue to be free from
31 control or direction over the performance of such service, both under
32 his or her contract of service and in fact; and
33     (II) Such service is either outside the usual course of business
34 for which such service is performed, or that such service is
35 performed outside of all the places of business of the enterprises
36 for which such service is performed, or the individual is
37 responsible, both under the contract and in fact, for the costs of
38 the principal place of business from which the service is performed;
39 and
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1     (III) Such individual is customarily engaged in an independently
2 established trade, occupation, profession, or business, of the same
3 nature as that involved in the contract of service, or such
4 individual has a principal place of business for the work the
5 individual is conducting that is eligible for a business deduction
6 for federal income tax purposes; and
7     (IV) On the effective date of the contract of service, such
8 individual is responsible for filing at the next applicable filing
9 period, both under the contract of service and in fact, a schedule of
10 expenses with the internal revenue service for the type of business
11 the individual is conducting; and
12     (V) On the effective date of the contract of service, or within a
13 reasonable period after the effective date of the contract, such
14 individual has established an account with the department of revenue,
15 and other state agencies as required by the particular case, for the
16 business the individual is conducting for the payment of all state
17 taxes normally paid by employers and businesses and has registered
18 for and received a unified business identifier number from the state
19 of Washington; and
20     (VI) On the effective date of the contract of service, such
21 individual is maintaining a separate set of books or records that
22 reflect all items of income and expenses of the business which the
23 individual is conducting; or
24     (iv) Services that require registration under chapter 18.27 RCW
25 or licensing under chapter 19.28 RCW rendered by an individual when:
26     (A) The individual has been and will continue to be free from
27 control or direction over the performance of the service, both under
28 the contract of service and in fact;
29     (B) The service is either outside the usual course of business
30 for which the service is performed, or the service is performed
31 outside of all the places of business of the enterprise for which the
32 service is performed, or the individual is responsible, both under
33 the contract and in fact, for the costs of the principal place of
34 business from which the service is performed;
35     (C) The individual is customarily engaged in an independently
36 established trade, occupation, profession, or business, of the same
37 nature as that involved in the contract of service, or the individual
38 has a principal place of business for the business the individual is
39 conducting that is eligible for a business deduction for federal
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1 income tax purposes, other than that furnished by the employer for
2 which the business has contracted to furnish services;
3     (D) On the effective date of the contract of service, the
4 individual is responsible for filing at the next applicable filing
5 period, both under the contract of service and in fact, a schedule of
6 expenses with the internal revenue service for the type of business
7 the individual is conducting;
8     (E) On the effective date of the contract of service, or within a
9 reasonable period after the effective date of the contract, the
10 individual has an active and valid certificate of registration with
11 the department of revenue, and an active and valid account with any
12 other state agencies as required by the particular case, for the
13 business the individual is conducting for the payment of all state
14 taxes normally paid by employers and businesses and has registered
15 for and received a unified business identifier number from the state
16 of Washington;
17     (F) On the effective date of the contract of service, the
18 individual is maintaining a separate set of books or records that
19 reflect all items of income and expenses of the business that the
20 individual is conducting; and
21     (G) On the effective date of the contract of service, the
22 individual has a valid contractor registration pursuant to chapter
23 18.27 RCW or an electrical contractor license pursuant to chapter
24 19.28 RCW.
25     (9) "Employment benefits" means all benefits provided or made
26 available to employees by an employer, including group life
27 insurance, health insurance, disability insurance, sick leave, annual
28 leave, educational benefits, and pensions.
29     (10) "Family leave" means any leave taken by an employee from
30 work:
31     (a) To participate in providing care, including physical or
32 psychological care, for a family member of the employee made
33 necessary by a serious health condition of the family member;
34     (b) To bond with the employee's child during the first twelve
35 months after the child's birth, or the first twelve months after the
36 placement of a child under the age of eighteen with the employee;
37     (c) Because of any qualifying exigency as permitted under the
38 federal family and medical leave act, 29 U.S.C. Sec. 2612(a)(1)(E)
39 and 29 C.F.R. Sec. 825.126(b)(1) through (9), as they existed on
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1 October 19, 2017, for family members as defined in subsection (11) of
2 this section; or
3     (d) During the seven calendar days following the death of the
4 family member for whom the employee:
5     (i) Would have qualified for medical leave under subsection (15)
6 of this section for the birth of their child; or
7     (ii) Would have qualified for family leave under (b) of this
8 subsection.
9     (11) "Family member" means a child, grandchild, grandparent,
10 parent, sibling, or spouse of an employee, and also includes any
11 individual who regularly resides in the employee's home or where the
12 relationship creates an expectation that the employee care for the
13 person, and that individual depends on the employee for care. "Family
14 member" includes any individual who regularly resides in the
15 employee's home, except that it does not include an individual who
16 simply resides in the same home with no expectation that the employee
17 care for the individual.
18     (12) "Grandchild" means a child of the employee's child.
19     (13) "Grandparent" means a parent of the employee's parent.
20     (14) "Health care provider" means: (a) A person licensed as a
21 physician under chapter 18.71 RCW or an osteopathic physician and
22 surgeon under chapter 18.57 RCW; (b) a person licensed as an advanced
23 registered nurse practitioner under chapter 18.79 RCW; or (c) any
24 other person determined by the commissioner to be capable of
25 providing health care services.
26     (15) "Medical leave" means any leave taken by an employee from
27 work made necessary by the employee's own serious health condition.
28     (16) "Paid time off" includes vacation leave, personal leave,
29 medical leave, sick leave, compensatory leave, or any other paid
30 leave offered by an employer under the employer's established policy.
31     (17) "Parent" means the biological, adoptive, de facto, or foster
32 parent, stepparent, or legal guardian of an employee or the
33 employee's spouse, or an individual who stood in loco parentis to an
34 employee when the employee was a child.
35     (18) "Period of incapacity" means an inability to work, attend
36 school, or perform other regular daily activities because of a
37 serious health condition, treatment of that condition or recovery
38 from it, or subsequent treatment in connection with such inpatient
39 care.
40     (19) "Postnatal" means the first six weeks after birth.
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1     (20) "Premium" or "premiums" means the payments required by RCW
2 50A.10.030 and paid to the department for deposit in the family and
3 medical leave insurance account under RCW 50A.05.070.
4     (21) "Qualifying period" means the first four of the last five
5 completed calendar quarters or, if eligibility is not established,
6 the last four completed calendar quarters immediately preceding the
7 application for leave.
8     (22)(a) "Remuneration" means all compensation paid for personal
9 services including commissions and bonuses and the cash value of all
10 compensation paid in any medium other than cash.
11     (b) Previously accrued compensation, other than severance pay or
12 payments received pursuant to plant closure agreements, when assigned
13 to a specific period of time by virtue of a collective bargaining
14 agreement, individual employment contract, customary trade practice,
15 or request of the individual compensated, is considered remuneration
16 for the period to which it is assigned. Assignment clearly occurs
17 when the compensation serves to make the individual eligible for all
18 regular fringe benefits for the period to which the compensation is
19 assigned.
20     (c) Remuneration also includes settlements or other proceeds
21 received by an individual as a result of a negotiated settlement for
22 termination of an individual written employment contract prior to its
23 expiration date. The proceeds are deemed assigned in the same
24 intervals and in the same amount for each interval as compensation
25 was allocated under the contract.
26     (d) Remuneration does not include:
27     (i) The payment of tips; or
28     (ii) ((Supplemental benefit payments made by an employer to an
29 employee in addition to any paid family or medical leave benefits
30 received by the employee; or
31     (iii))) Payments to members of the armed forces of the United
32 States, including the organized militia of the state of Washington,
33 for the performance of duty for periods not exceeding seventy-two
34 hours at a time.
35     (23)(a) "Serious health condition" means an illness, injury,
36 impairment, or physical or mental condition that involves:
37     (i) Inpatient care in a hospital, hospice, or residential medical
38 care facility, including any period of incapacity; or
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1     (ii) Continuing treatment by a health care provider. A serious
2 health condition involving continuing treatment by a health care
3 provider includes any one or more of the following:
4     (A) A period of incapacity of more than three consecutive, full
5 calendar days, and any subsequent treatment or period of incapacity
6 relating to the same condition, that also involves:
7     (I) Treatment two or more times, within thirty days of the first
8 day of incapacity, unless extenuating circumstances exist, by a
9 health care provider, by a nurse or physician's assistant under
10 direct supervision of a health care provider, or by a provider of
11 health care services, such as a physical therapist, under orders of,
12 or on referral by, a health care provider; or
13     (II) Treatment by a health care provider on at least one occasion
14 which results in a regimen of continuing treatment under the
15 supervision of the health care provider;
16     (B) Any period of incapacity due to pregnancy, or for prenatal
17 care;
18     (C) Any period of incapacity or treatment for such incapacity due
19 to a chronic serious health condition. A chronic serious health
20 condition is one which:
21     (I) Requires periodic visits, defined as at least twice a year,
22 for treatment by a health care provider, or by a nurse under direct
23 supervision of a health care provider;
24     (II) Continues over an extended period of time, including
25 recurring episodes of a single underlying condition; and
26     (III) May cause episodic rather than a continuing period of
27 incapacity, including asthma, diabetes, and epilepsy;
28     (D) A period of incapacity which is permanent or long term due to
29 a condition for which treatment may not be effective. The employee or
30 family member must be under the continuing supervision of, but need
31 not be receiving active treatment by, a health care provider,
32 including Alzheimer's, a severe stroke, or the terminal stages of a
33 disease; or
34     (E) Any period of absence to receive multiple treatments,
35 including any period of recovery from the treatments, by a health
36 care provider or by a provider of health care services under orders
37 of, or on referral by, a health care provider, either for: (I)
38 Restorative surgery after an accident or other injury; or (II) a
39 condition that would likely result in a period of incapacity of more
40 than three consecutive, full calendar days in the absence of medical
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1 intervention or treatment, such as cancer, severe arthritis, or
2 kidney disease.
3     (b) The requirement in (a)(i) and (ii) of this subsection for
4 treatment by a health care provider means an in-person visit to a
5 health care provider. The first, or only, in-person treatment visit
6 must take place within seven days of the first day of incapacity.
7     (c) Whether additional treatment visits or a regimen of
8 continuing treatment is necessary within the thirty-day period shall
9 be determined by the health care provider.
10     (d) The term extenuating circumstances in (a)(ii)(A)(I) of this
11 subsection means circumstances beyond the employee's control that
12 prevent the follow-up visit from occurring as planned by the health
13 care provider. Whether a given set of circumstances are extenuating
14 depends on the facts. For example, extenuating circumstances exist if
15 a health care provider determines that a second in-person visit is
16 needed within the thirty-day period, but the health care provider
17 does not have any available appointments during that time period.
18     (e) Treatment for purposes of (a) of this subsection includes,
19 but is not limited to, examinations to determine if a serious health
20 condition exists and evaluations of the condition. Treatment does not
21 include routine physical examinations, eye examinations, or dental
22 examinations. Under (a)(ii)(A)(II) of this subsection, a regimen of
23 continuing treatment includes, but is not limited to, a course of
24 prescription medication, such as an antibiotic, or therapy requiring
25 special equipment to resolve or alleviate the health condition, such
26 as oxygen. A regimen of continuing treatment that includes taking
27 over-the-counter medications, such as aspirin, antihistamines, or
28 salves, or bed rest, drinking fluids, exercise, and other similar
29 activities that can be initiated without a visit to a health care
30 provider, is not, by itself, sufficient to constitute a regimen of
31 continuing treatment for purposes of this title.
32     (f) Conditions for which cosmetic treatments are administered,
33 such as most treatments for acne or plastic surgery, are not serious
34 health conditions unless inpatient hospital care is required or
35 unless complications develop. Ordinarily, unless complications arise,
36 the common cold, the flu, ear aches, upset stomach, minor ulcers,
37 headaches other than migraines, routine dental or orthodontia
38 problems, and periodontal disease are examples of conditions that are
39 not serious health conditions and do not qualify for leave under this
40 title. Restorative dental or plastic surgery after an injury or
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1 removal of cancerous growths are serious health conditions provided
2 all the other conditions of this section are met. Mental illness
3 resulting from stress or allergies may be serious health conditions,
4 but only if all the conditions of this section are met.
5     (g)(i) Substance abuse may be a serious health condition if the
6 conditions of this section are met. However, leave may only be taken
7 for treatment for substance abuse by a health care provider or by a
8 licensed substance abuse treatment provider. Absence because of the
9 employee's use of the substance, rather than for treatment, does not
10 qualify for leave under this title.
11     (ii) Treatment for substance abuse does not prevent an employer
12 from taking employment action against an employee. The employer may
13 not take action against the employee because the employee has
14 exercised his or her right to take medical leave for treatment.
15 However, if the employer has an established policy, applied in a
16 nondiscriminatory manner that has been communicated to all employees,
17 that provides under certain circumstances an employee may be
18 terminated for substance abuse, pursuant to that policy the employee
19 may be terminated whether or not the employee is presently taking
20 medical leave. An employee may also take family leave to care for a
21 covered family member who is receiving treatment for substance abuse.
22 The employer may not take action against an employee who is providing
23 care for a covered family member receiving treatment for substance
24 abuse.
25     (h) Absences attributable to incapacity under (a)(ii)(B) or (C)
26 of this subsection qualify for leave under this title even though the
27 employee or the family member does not receive treatment from a
28 health care provider during the absence, and even if the absence does
29 not last more than three consecutive, full calendar days. For
30 example, an employee with asthma may be unable to report for work due
31 to the onset of an asthma attack or because the employee's health
32 care provider has advised the employee to stay home when the pollen
33 count exceeds a certain level. An employee who is pregnant may be
34 unable to report to work because of severe morning sickness.
35     (24) "Service is localized in this state" has the same meaning as
36 described in RCW 50.04.120.
37     (25) "Spouse" means a husband or wife, as the case may be, or
38 state registered domestic partner.
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1     (26) "State average weekly wage" means the most recent average
2 weekly wage calculated under RCW 50.04.355 and available on January
3 1st of each year.
4     (27) (("Supplemental benefit payments" means payments made by an
5 employer to an employee as salary continuation or as paid time off.
6 Such payments must be in addition to any paid family or medical leave
7 benefits the employee is receiving.
8     (28))) "Typical workweek hours" means:
9     (a) For an hourly employee, the average number of hours worked
10 per week by an employee within the qualifying period; and
11     (b) Forty hours for a salaried employee, regardless of the number
12 of hours the salaried employee typically works.
13     (((29))) (28) "Wage" or "wages" means:
14     (a) For the purpose of premium assessment, the remuneration paid
15 by an employer to an employee. The maximum wages subject to a premium
16 assessment are those wages as set by the commissioner under RCW
17 50A.10.030;
18     (b) For the purpose of payment of benefits, the remuneration paid
19 by one or more employers to an employee for employment during the
20 employee's qualifying period. At the request of an employee, wages
21 may be calculated on the basis of remuneration payable. The
22 department shall notify each employee that wages are calculated on
23 the basis of remuneration paid, but at the employee's request a
24 redetermination may be performed and based on remuneration payable;
25 and
26     (c) For the purpose of a self-employed person electing coverage
27 under RCW 50A.10.010, the meaning is defined by rule.
28     Sec. 2. RCW 50A.05.010 and 2025 c 178 s 1 and 2025 c 58 s 5111
29 are each reenacted and amended to read as follows:
30     Unless the context clearly requires otherwise, the definitions in
31 this section apply throughout this title.
32     (1)(a) "Casual labor" means work that:
33     (i) Is performed infrequently and irregularly; and
34     (ii) If performed for an employer, does not promote or advance
35 the employer's customary trade or business.
36     (b) For purposes of casual labor:
37     (i) "Infrequently" means work performed twelve or fewer times per
38 calendar quarter; and
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1     (ii) "Irregularly" means work performed not on a consistent
2 cadence.
3     (2) "Child" includes a biological, adopted, or foster child, a
4 stepchild, a child's spouse, or a child to whom the employee stands
5 in loco parentis, is a legal guardian, or is a de facto parent,
6 regardless of age or dependency status.
7     (3) "Commissioner" means the commissioner of the department or
8 the commissioner's designee.
9     (4) "Department" means the employment security department.
10     (5)(a) "Employee" means an individual who is in the employment of
11 an employer.
12     (b) "Employee" does not include employees of the United States of
13 America.
14     (6) "Employee's average weekly wage" means the quotient derived
15 by dividing the employee's total wages during the two quarters of the
16 employee's qualifying period in which total wages were highest by
17 twenty-six. If the result is not a multiple of one dollar, the
18 department must round the result to the next lower multiple of one
19 dollar.
20     (7)(a) "Employer" means:
21     (i) Any individual or type of organization, including any
22 partnership, association, trust, estate, joint stock company,
23 insurance company, limited liability company, or corporation, whether
24 domestic or foreign, or the receiver, trustee in bankruptcy, trustee,
25 or the legal representative of a deceased person, having any person
26 in employment or, having become an employer, has not ceased to be an
27 employer as provided in this title;
28     (ii) The state, state institutions, and state agencies;
29     (iii) Any unit of local government including, but not limited to,
30 a   county,  city,   town,   municipal  corporation,   quasi-municipal
31 corporation, or political subdivision; and
32     (iv) Representatives for employers of dockworkers who normally
33 work for several employers in the same industry interchangeably
34 through a collectively bargained agreement. Other than for their own
35 employees, employer representatives are not obligated to report
36 dockworkers who are not covered by the collective bargaining
37 agreement.
38     (b) "Employer" does not include the United States of America.
39     (8)(a) "Employment" means personal service, of whatever nature,
40 unlimited by any employment relationship as known to the common law
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1 or any other legal relationship performed for wages or under any
2 contract calling for the performance of personal services, written or
3 oral, express or implied. The term "employment" includes an
4 individual's entire service performed within or without or both
5 within and without this state, if:
6     (i) The service is localized in this state; or
7     (ii) The service is not localized in any state, but some of the
8 service is performed in this state; and
9     (A) The base of operations of the employee is in the state, or if
10 there is no base of operations, then the place from which such
11 service is directed or controlled is in this state; or
12     (B) The base of operations or place from which such service is
13 directed or controlled is not in any state in which some part of the
14 service is performed, but the individual's residence is in this
15 state.
16     (b) "Employment" does not include:
17     (i) Self-employed individuals;
18     (ii) Casual labor;
19     (iii) Services for remuneration when it is shown to the
20 satisfaction of the commissioner that:
21     (A)(I) Such individual has been and will continue to be free from
22 control or direction over the performance of such service, both under
23 his or her contract of service and in fact; and
24     (II) Such service is either outside the usual course of business
25 for which such service is performed, or that such service is
26 performed outside of all the places of business of the enterprises
27 for which such service is performed; and
28     (III) Such individual is customarily engaged in an independently
29 established trade, occupation, profession, or business, of the same
30 nature as that involved in the contract of service; or
31     (B) As a separate alternative:
32     (I) Such individual has been and will continue to be free from
33 control or direction over the performance of such service, both under
34 his or her contract of service and in fact; and
35     (II) Such service is either outside the usual course of business
36 for which such service is performed, or that such service is
37 performed outside of all the places of business of the enterprises
38 for which such service is performed, or the individual is
39 responsible, both under the contract and in fact, for the costs of
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1 the principal place of business from which the service is performed;
2 and
3     (III) Such individual is customarily engaged in an independently
4 established trade, occupation, profession, or business, of the same
5 nature as that involved in the contract of service, or such
6 individual has a principal place of business for the work the
7 individual is conducting that is eligible for a business deduction
8 for federal income tax purposes; and
9     (IV) On the effective date of the contract of service, such
10 individual is responsible for filing at the next applicable filing
11 period, both under the contract of service and in fact, a schedule of
12 expenses with the internal revenue service for the type of business
13 the individual is conducting; and
14     (V) On the effective date of the contract of service, or within a
15 reasonable period after the effective date of the contract, such
16 individual has established an account with the department of revenue,
17 and other state agencies as required by the particular case, for the
18 business the individual is conducting for the payment of all state
19 taxes normally paid by employers and businesses and has registered
20 for and received a unified business identifier number from the state
21 of Washington; and
22     (VI) On the effective date of the contract of service, such
23 individual is maintaining a separate set of books or records that
24 reflect all items of income and expenses of the business which the
25 individual is conducting; or
26     (iv) Services that require registration under chapter 18.27 RCW
27 or licensing under chapter 19.28 RCW rendered by an individual when:
28     (A) The individual has been and will continue to be free from
29 control or direction over the performance of the service, both under
30 the contract of service and in fact;
31     (B) The service is either outside the usual course of business
32 for which the service is performed, or the service is performed
33 outside of all the places of business of the enterprise for which the
34 service is performed, or the individual is responsible, both under
35 the contract and in fact, for the costs of the principal place of
36 business from which the service is performed;
37     (C) The individual is customarily engaged in an independently
38 established trade, occupation, profession, or business, of the same
39 nature as that involved in the contract of service, or the individual
40 has a principal place of business for the business the individual is
  p. 14  HB 2485
1 conducting that is eligible for a business deduction for federal
2 income tax purposes, other than that furnished by the employer for
3 which the business has contracted to furnish services;
4     (D) On the effective date of the contract of service, the
5 individual is responsible for filing at the next applicable filing
6 period, both under the contract of service and in fact, a schedule of
7 expenses with the internal revenue service for the type of business
8 the individual is conducting;
9     (E) On the effective date of the contract of service, or within a
10 reasonable period after the effective date of the contract, the
11 individual has an active and valid certificate of registration with
12 the department of revenue, and an active and valid account with any
13 other state agencies as required by the particular case, for the
14 business the individual is conducting for the payment of all state
15 taxes normally paid by employers and businesses and has registered
16 for and received a unified business identifier number from the state
17 of Washington;
18     (F) On the effective date of the contract of service, the
19 individual is maintaining a separate set of books or records that
20 reflect all items of income and expenses of the business that the
21 individual is conducting; and
22     (G) On the effective date of the contract of service, the
23 individual has a valid contractor registration pursuant to chapter
24 18.27 RCW or an electrical contractor license pursuant to chapter
25 19.28 RCW.
26     (9) "Employment benefits" means all benefits provided or made
27 available to employees by an employer, including group life
28 insurance, health insurance, disability insurance, sick leave, annual
29 leave, educational benefits, and pensions.
30     (10) "Family leave" means any leave taken by an employee from
31 work:
32     (a) To participate in providing care, including physical or
33 psychological care, for a family member of the employee made
34 necessary by a serious health condition of the family member;
35     (b) To bond with the employee's child during the first twelve
36 months after the child's birth, or the first twelve months after the
37 placement of a child under the age of eighteen with the employee;
38     (c) Because of any qualifying exigency as permitted under the
39 federal family and medical leave act, 29 U.S.C. Sec. 2612(a)(1)(E)
40 and 29 C.F.R. Sec. 825.126(b)(1) through (9), as they existed on
  p. 15  HB 2485
1 October 19, 2017, for family members as defined in subsection (11) of
2 this section; or
3     (d) During the seven calendar days following the death of the
4 family member for whom the employee:
5     (i) Would have qualified for medical leave under subsection (15)
6 of this section for the birth of their child; or
7     (ii) Would have qualified for family leave under (b) of this
8 subsection.
9     (11) "Family member" means a child, grandchild, grandparent,
10 parent, sibling, or spouse of an employee, and also includes any
11 individual who regularly resides in the employee's home or where the
12 relationship creates an expectation that the employee care for the
13 person, and that individual depends on the employee for care. "Family
14 member" includes any individual who regularly resides in the
15 employee's home, except that it does not include an individual who
16 simply resides in the same home with no expectation that the employee
17 care for the individual.
18     (12) "Grandchild" means a child of the employee's child.
19     (13) "Grandparent" means a parent of the employee's parent.
20     (14) "Health care provider" means: (a) A person licensed as a
21 physician under chapter 18.71 RCW or an osteopathic physician and
22 surgeon under chapter 18.57 RCW; (b) a person licensed as an advanced
23 practice registered nurse under chapter 18.79 RCW; or (c) any other
24 person determined by the commissioner to be capable of providing
25 health care services.
26     (15) "Medical leave" means any leave taken by an employee from
27 work made necessary by the employee's own serious health condition.
28     (16) "Paid time off" includes vacation leave, personal leave,
29 medical leave, sick leave, compensatory leave, or any other paid
30 leave offered by an employer under the employer's established policy.
31     (17) "Parent" means the biological, adoptive, de facto, or foster
32 parent, stepparent, or legal guardian of an employee or the
33 employee's spouse, or an individual who stood in loco parentis to an
34 employee when the employee was a child.
35     (18) "Period of incapacity" means an inability to work, attend
36 school, or perform other regular daily activities because of a
37 serious health condition, treatment of that condition or recovery
38 from it, or subsequent treatment in connection with such inpatient
39 care.
40     (19) "Postnatal" means the first six weeks after birth.
  p. 16  HB 2485
1     (20) "Premium" or "premiums" means the payments required by RCW
2 50A.10.030 and paid to the department for deposit in the family and
3 medical leave insurance account under RCW 50A.05.070.
4     (21) "Qualifying period" means the first four of the last five
5 completed calendar quarters or, if eligibility is not established,
6 the last four completed calendar quarters immediately preceding the
7 application for leave.
8     (22)(a) "Remuneration" means all compensation paid for personal
9 services including commissions and bonuses and the cash value of all
10 compensation paid in any medium other than cash.
11     (b) Previously accrued compensation, other than severance pay or
12 payments received pursuant to plant closure agreements, when assigned
13 to a specific period of time by virtue of a collective bargaining
14 agreement, individual employment contract, customary trade practice,
15 or request of the individual compensated, is considered remuneration
16 for the period to which it is assigned. Assignment clearly occurs
17 when the compensation serves to make the individual eligible for all
18 regular fringe benefits for the period to which the compensation is
19 assigned.
20     (c) Remuneration also includes settlements or other proceeds
21 received by an individual as a result of a negotiated settlement for
22 termination of an individual written employment contract prior to its
23 expiration date. The proceeds are deemed assigned in the same
24 intervals and in the same amount for each interval as compensation
25 was allocated under the contract.
26     (d) Remuneration does not include:
27     (i) The payment of tips; or
28     (ii) ((Supplemental benefit payments made by an employer to an
29 employee in addition to any paid family or medical leave benefits
30 received by the employee; or
31     (iii))) Payments to members of the armed forces of the United
32 States, including the organized militia of the state of Washington,
33 for the performance of duty for periods not exceeding seventy-two
34 hours at a time.
35     (23)(a) "Serious health condition" means an illness, injury,
36 impairment, or physical or mental condition that involves:
37     (i) Inpatient care in a hospital, hospice, or residential medical
38 care facility, including any period of incapacity; or
  p. 17  HB 2485
1     (ii) Continuing treatment by a health care provider. A serious
2 health condition involving continuing treatment by a health care
3 provider includes any one or more of the following:
4     (A) A period of incapacity of more than three consecutive, full
5 calendar days, and any subsequent treatment or period of incapacity
6 relating to the same condition, that also involves:
7     (I) Treatment two or more times, within thirty days of the first
8 day of incapacity, unless extenuating circumstances exist, by a
9 health care provider, by a nurse or physician's assistant under
10 direct supervision of a health care provider, or by a provider of
11 health care services, such as a physical therapist, under orders of,
12 or on referral by, a health care provider; or
13     (II) Treatment by a health care provider on at least one occasion
14 which results in a regimen of continuing treatment under the
15 supervision of the health care provider;
16     (B) Any period of incapacity due to pregnancy, or for prenatal
17 care;
18     (C) Any period of incapacity or treatment for such incapacity due
19 to a chronic serious health condition. A chronic serious health
20 condition is one which:
21     (I) Requires periodic visits, defined as at least twice a year,
22 for treatment by a health care provider, or by a nurse under direct
23 supervision of a health care provider;
24     (II) Continues over an extended period of time, including
25 recurring episodes of a single underlying condition; and
26     (III) May cause episodic rather than a continuing period of
27 incapacity, including asthma, diabetes, and epilepsy;
28     (D) A period of incapacity which is permanent or long term due to
29 a condition for which treatment may not be effective. The employee or
30 family member must be under the continuing supervision of, but need
31 not be receiving active treatment by, a health care provider,
32 including Alzheimer's, a severe stroke, or the terminal stages of a
33 disease; or
34     (E) Any period of absence to receive multiple treatments,
35 including any period of recovery from the treatments, by a health
36 care provider or by a provider of health care services under orders
37 of, or on referral by, a health care provider, either for: (I)
38 Restorative surgery after an accident or other injury; or (II) a
39 condition that would likely result in a period of incapacity of more
40 than three consecutive, full calendar days in the absence of medical
  p. 18  HB 2485
1 intervention or treatment, such as cancer, severe arthritis, or
2 kidney disease.
3     (b) The requirement in (a)(i) and (ii) of this subsection for
4 treatment by a health care provider means an in-person visit to a
5 health care provider. The first, or only, in-person treatment visit
6 must take place within seven days of the first day of incapacity.
7     (c) Whether additional treatment visits or a regimen of
8 continuing treatment is necessary within the thirty-day period shall
9 be determined by the health care provider.
10     (d) The term extenuating circumstances in (a)(ii)(A)(I) of this
11 subsection means circumstances beyond the employee's control that
12 prevent the follow-up visit from occurring as planned by the health
13 care provider. Whether a given set of circumstances are extenuating
14 depends on the facts. For example, extenuating circumstances exist if
15 a health care provider determines that a second in-person visit is
16 needed within the thirty-day period, but the health care provider
17 does not have any available appointments during that time period.
18     (e) Treatment for purposes of (a) of this subsection includes,
19 but is not limited to, examinations to determine if a serious health
20 condition exists and evaluations of the condition. Treatment does not
21 include routine physical examinations, eye examinations, or dental
22 examinations. Under (a)(ii)(A)(II) of this subsection, a regimen of
23 continuing treatment includes, but is not limited to, a course of
24 prescription medication, such as an antibiotic, or therapy requiring
25 special equipment to resolve or alleviate the health condition, such
26 as oxygen. A regimen of continuing treatment that includes taking
27 over-the-counter medications, such as aspirin, antihistamines, or
28 salves, or bed rest, drinking fluids, exercise, and other similar
29 activities that can be initiated without a visit to a health care
30 provider, is not, by itself, sufficient to constitute a regimen of
31 continuing treatment for purposes of this title.
32     (f) Conditions for which cosmetic treatments are administered,
33 such as most treatments for acne or plastic surgery, are not serious
34 health conditions unless inpatient hospital care is required or
35 unless complications develop. Ordinarily, unless complications arise,
36 the common cold, the flu, ear aches, upset stomach, minor ulcers,
37 headaches other than migraines, routine dental or orthodontia
38 problems, and periodontal disease are examples of conditions that are
39 not serious health conditions and do not qualify for leave under this
40 title. Restorative dental or plastic surgery after an injury or
  p. 19  HB 2485
1 removal of cancerous growths are serious health conditions provided
2 all the other conditions of this section are met. Mental illness
3 resulting from stress or allergies may be serious health conditions,
4 but only if all the conditions of this section are met.
5     (g)(i) Substance abuse may be a serious health condition if the
6 conditions of this section are met. However, leave may only be taken
7 for treatment for substance abuse by a health care provider or by a
8 licensed substance abuse treatment provider. Absence because of the
9 employee's use of the substance, rather than for treatment, does not
10 qualify for leave under this title.
11     (ii) Treatment for substance abuse does not prevent an employer
12 from taking employment action against an employee. The employer may
13 not take action against the employee because the employee has
14 exercised his or her right to take medical leave for treatment.
15 However, if the employer has an established policy, applied in a
16 nondiscriminatory manner that has been communicated to all employees,
17 that provides under certain circumstances an employee may be
18 terminated for substance abuse, pursuant to that policy the employee
19 may be terminated whether or not the employee is presently taking
20 medical leave. An employee may also take family leave to care for a
21 covered family member who is receiving treatment for substance abuse.
22 The employer may not take action against an employee who is providing
23 care for a covered family member receiving treatment for substance
24 abuse.
25     (h) Absences attributable to incapacity under (a)(ii)(B) or (C)
26 of this subsection qualify for leave under this title even though the
27 employee or the family member does not receive treatment from a
28 health care provider during the absence, and even if the absence does
29 not last more than three consecutive, full calendar days. For
30 example, an employee with asthma may be unable to report for work due
31 to the onset of an asthma attack or because the employee's health
32 care provider has advised the employee to stay home when the pollen
33 count exceeds a certain level. An employee who is pregnant may be
34 unable to report to work because of severe morning sickness.
35     (24) "Service is localized in this state" has the same meaning as
36 described in RCW 50.04.120.
37     (25) "Spouse" means a husband or wife, as the case may be, or
38 state registered domestic partner.
  p. 20  HB 2485
1     (26) "State average weekly wage" means the most recent average
2 weekly wage calculated under RCW 50.04.355 and available on January
3 1st of each year.
4     (27) (("Supplemental benefit payments" means payments made by an
5 employer to an employee as salary continuation or as paid time off.
6 Such payments must be in addition to any paid family or medical leave
7 benefits the employee is receiving.
8     (28))) "Typical workweek hours" means:
9     (a) For an hourly employee, the average number of hours worked
10 per week by an employee within the qualifying period; and
11     (b) Forty hours for a salaried employee, regardless of the number
12 of hours the salaried employee typically works.
13     (((29))) (28) "Wage" or "wages" means:
14     (a) For the purpose of premium assessment, the remuneration paid
15 by an employer to an employee. The maximum wages subject to a premium
16 assessment are those wages as set by the commissioner under RCW
17 50A.10.030;
18     (b) For the purpose of payment of benefits, the remuneration paid
19 by one or more employers to an employee for employment during the
20 employee's qualifying period. At the request of an employee, wages
21 may be calculated on the basis of remuneration payable. The
22 department shall notify each employee that wages are calculated on
23 the basis of remuneration paid, but at the employee's request a
24 redetermination may be performed and based on remuneration payable;
25 and
26     (c) For the purpose of a self-employed person electing coverage
27 under RCW 50A.10.010, the meaning is defined by rule.
28     Sec. 3.   RCW 50A.15.060 and 2020 c 125 s 5 are each amended to
29 read as follows:
30     (1) An employee is not entitled to paid family or medical leave
31 benefits under this title:
32     (a) For any absence occasioned by the willful intention of the
33 employee to bring about injury to or the sickness of the employee or
34 another, or resulting from any injury or sickness sustained in the
35 perpetration by the employee of an illegal act;
36     (b) For any family or medical leave commencing before the
37 employee becomes qualified for benefits under this title;
38     (c) For an employee who is on suspension from his or her
39 employment; ((or))
  p. 21  HB 2485
1     (d) For any period of time during which an employee works for
2 remuneration or profit((.
3     (2) An employer may offer supplemental benefit payments to an
4 employee on family or medical leave in addition to any paid family or
5 medical leave benefits the employee is receiving.
6     (a) Supplemental benefit payments are not considered remuneration
7 under RCW 50A.05.010(21) and the department will not prorate or
8 reduce an employee's weekly benefit amount due to the receipt of
9 supplemental benefit payments.
10     (b) The choice to receive supplemental benefit payments lies with
11 the employee. Nothing in this section shall be construed as requiring
12 an employee to receive or an employer to provide supplemental benefit
13 payments.
14     (3))); or
15     (e) For any week during which an employee receives any payment
16 from his or her employer, including paid time off or any other form
17 of payment, to cover leave taken for a serious health condition or
18 other qualifying event under this title.
19     (2) An individual is disqualified for benefits for any week he or
20 she has knowingly and willfully made a false statement or
21 representation involving a material fact or knowingly and willfully
22 failed to report a material fact and, as a result, has obtained or
23 attempted to obtain any benefits under the provisions of this title.
24 An individual disqualified for benefits under this subsection (((3)))
25 (2) for the:
26     (a) First time is disqualified for an additional twenty-six weeks
27 beginning with the Sunday of the week in which the determination is
28 mailed or delivered, and is subject to an additional penalty of
29 fifteen percent of the amount of benefits overpaid or deemed
30 overpaid;
31     (b) Second time is also disqualified for an additional fifty-two
32 weeks beginning with the Sunday of the week in which the
33 determination is mailed or delivered, and is subject to an additional
34 penalty of twenty-five percent of the amount of benefits overpaid or
35 deemed overpaid;
36     (c) Third time and any time thereafter is also disqualified for
37 an additional one hundred four weeks beginning with the Sunday of the
38 week in which the determination is mailed or delivered, and is
39 subject to an additional penalty of fifty percent of the amount of
40 benefits overpaid or deemed overpaid.
  p. 22  HB 2485
1     (((4))) (3) All penalties collected under this section must be
2 deposited in the family and medical leave enforcement account created
3 under RCW 50A.05.080.
4     Sec. 4.   RCW 50A.35.030 and 2019 c 13 s 42 are each amended to
5 read as follows:
6     (1) Nothing in this title shall be construed to discourage
7 employers from((:
8     (a) Adopting)) adopting or retaining leave policies more generous
9 than any policies that comply with the requirements under this
10 title((; or
11     (b) Making supplemental benefit payments as provided under RCW
12 50A.15.060 to an employee on paid family or medical leave)).
13     (2) Any agreement by an individual to waive, release, or commute
14 his or her rights under this title is void as against public policy.
15     (3) After January 1, 2020, subject to RCW 50A.05.090, an
16 employee's rights under this title may not be diminished by a
17 collective bargaining agreement or employer policy.
18     NEW SECTION.   Sec. 5.  The employment security department shall
19 evaluate applicable practices, policies, rules, and laws pertaining
20 to the certification of serious health conditions and documentation
21 of other qualifying events in the paid family and medical leave
22 program under Title 50A RCW. The employment security department shall
23 determine any necessary changes to said practices, policies, rules,
24 and laws for purposes of reducing errors and detecting and denying
25 fraudulent or otherwise ineligible claims. The employment security
26 department shall report its findings and recommendations to the
27 governor and appropriate committees of the legislature by November 1,
28 2026.
29     NEW SECTION.   Sec. 6.   Sections 1, 3, and 4 of this act take
30 effect January 1, 2027.
31     NEW SECTION.   Sec. 7.   Section 1 of this act expires June 30,
32 2027.
  p. 23  HB 2485
1     NEW SECTION.   Sec. 8.   Section 2 of this act takes effect June
2 30, 2027.
  --- END ---
  p. 24  HB 2485