Washington PFML 2026 brought two kinds of changes for employers: a higher premium and a legislative overhaul of job protection and claims. On October 29, 2025, Washington’s Employment Security Department (ESD) announced that the Paid Family and Medical Leave premium would rise from 0.92% to 1.13% of wages for 2026. At the same time, a 2025 law (HB 1213) expanded job protection to smaller employers, changed how Paid Leave works alongside FMLA and lowered the minimum claim to 4 hours.
Here is what Washington PFML 2026 requires of employers, what it costs per employee, and what it means for staffing firms with workers in Washington.
Washington PFML 2026 Premium Rate and Wage Cap
The total premium for 2026 is 1.13% of each employee’s gross wages (not including tips), up from 0.92% in 2025. Premiums apply only up to the Social Security wage cap, which is $184,500 for 2026. Wages paid above the cap are not subject to the premium.
The new rate applies to wages paid on or after January 1, 2026, so the deciding date is the pay date, not the work date. If you paid late-December 2025 hours in a January 2026 paycheck, those wages were subject to the 1.13% rate.
How the Premium Is Split Between Employers and Employees
For 2026, the premium is split this way:
- Employees pay up to 71.43% of the premium through payroll deductions.
- Employers with 50 or more employees in Washington pay about 28.57%.
- Employers with fewer than 50 employees don’t have to pay the employer share, unless they have received a small business assistance grant. They must still withhold the employee share, report wages and hours every quarter, and remit the premiums to ESD.
Here is what that looks like for one employee earning $1,000 a week at a company with 50 or more Washington employees:
- Total weekly premium: $11.30 (1.13% of $1,000)
- Employee share: about $8.07
- Employer share: about $3.23
For an employee who reaches the $184,500 wage cap, the full-year premium is about $2,084.85, with roughly $1,489 from the employee and $596 from the employer. You can run your own numbers with ESD’s premium calculator.
Employer Notice and Poster Requirements
Employers have two ongoing notice duties under Washington PFML 2026:
- Display the mandatory poster wherever you post other employment notices. ESD updates it in English and Spanish, and you can download the current version from the Employer Roles and Responsibilities page.
- Notify employees about Paid Leave within five business days of learning that they may have a qualifying event, such as a serious health condition, the birth or placement of a child, or caring for a family member. ESD provides the notice template on the same page.
Other Washington PFML 2026 Changes From HB 1213
Starting January 1, 2026, HB 1213 changed several parts of the Paid Leave program:
Job protection for employers with 25 or more employees
Before 2026, Paid Leave job protection applied only at employers with 50 or more employees, and only after the employee had worked there 12 months and at least 1,250 hours. Starting in 2026, job protection applies at employers with 25 or more employees, and employees qualify after 180 calendar days of employment. The threshold keeps dropping: to 15 or more employees in 2027 and 8 or more in 2028. Job protection means the employee has the right to return to the same or an equivalent position after leave.
Health care benefits during leave
Employers must keep providing health benefits to employees on job-protected Paid Leave on the same terms as if the employee had kept working.
Paid Leave and FMLA running together
When an employee qualifies for both Paid Leave and federal FMLA, employers can count FMLA leave against Paid Leave job protection if the combined protected leave would go past 16 weeks. To do that, the employer must give the employee written notice.
Lower weekly claim minimum
Employees can now claim Paid Leave for a week in which they miss as few as 4 consecutive hours of work, down from 8. Expect more short, intermittent claims, such as half days for medical appointments.
Expanded small business assistance grants
Small employers can receive up to 10 grants per year instead of applying for each one, and employers with fewer than 50 employees can attest to their costs instead of submitting documentation. The grants help cover costs such as hiring a temporary worker to cover for an employee on leave.
Washington PFML 2026 Benefits at a Glance
For new claims filed on or after January 1, 2026, the maximum weekly benefit is $1,647 and the minimum is $100 (or the employee’s average weekly wage, if lower). To be eligible, an employee must have worked at least 820 hours in Washington during their qualifying period. Hours from every Washington employer count toward that total.
What Washington PFML 2026 Means for Staffing Firms
Staffing firms are the employer of record for the temporary employees on their payroll, so these rules apply to every W-2 temp you place in Washington, not just your internal staff. Here is where Washington PFML 2026 hits staffing firms hardest.
Your temps count toward the 50- and 25-employee thresholds
ESD recalculates employer size every year from average Washington headcount, and temporary employees on your payroll count toward it. A staffing firm with 8 internal staff and 60 temps on assignment is a 50+ employer, so it pays the employer share and owes job protection. If you are close to either threshold, check your size each year instead of assuming.
The cost belongs in your bill rates
The jump from 0.92% to 1.13% is a 23% increase in the total premium. For a 50+ employer, the employer share is a payroll burden on every hour billed, alongside staffing company payroll taxes, unemployment insurance and workers’ comp. If your client contracts don’t let you pass through statutory cost increases, that money comes out of your markup. Like state unemployment taxes, PFML premiums stop at a wage cap, so the burden is heaviest on lower-paid temps who never reach it. Our guide to SUTA wage limits for staffing firms covers how wage caps change your true cost per employee.
Temps qualify for benefits sooner than you might expect
Because hours from every Washington employer count toward the 820-hour test, a temp may qualify for benefits soon after starting with you. Job protection now starts after 180 days, so long-term assignments are more likely to be covered. Plan how you will hold or refill a position when a temp on a client assignment takes protected leave.
Only W-2 employees are covered automatically
Paid Leave premiums apply to employees. Independent contractors are not covered unless they choose to opt in. If you place any 1099 workers in Washington, make sure the classification holds up. Our guide to W-2 vs 1099 staffing walks through the tests.
Multi-state firms are juggling more of these programs
Washington is one of a growing number of states with paid leave insurance, and each has its own rates, splits and deadlines. If you also place workers in the Northeast or Mid-Atlantic, see Massachusetts PFML contribution changes for 2027 and Maryland FAMLI for staffing agencies. Virginia’s program begins collecting contributions in 2028, as covered in our summary of Virginia employment law changes 2026.
Quarterly reporting adds back-office work
Under Washington PFML 2026, quarterly reports require hours as well as wages for every employee For a staffing firm with high turnover and weekly payroll, that is a lot of records to get right. If your staffing back office is already stretched, mistakes here can lead to late penalties and employee benefit disputes.
What's Coming for Washington PFML in 2027
A few 2027 changes are already set:
- Job protection expands again to employers with 15 or more employees on January 1, 2027.
- A new premium split under HB 2345. Signed March 11, 2026, it shifts part of the employer contribution from the medical leave portion of the premium to the family leave portion, so employer contributions for family leave aren’t subject to federal employment taxes. Total contributions don’t change, but payroll settings will. It doesn’t affect 2026 rates.
- The 2027 premium rate is scheduled to be announced by mid-November 2026, along with ESD’s guidance on the new split.
Until then, the Washington PFML 2026 rate and split stay in place. Update payroll and client bill rates as soon as the 2027 numbers are published, so January invoices reflect the new cost.
How Madison Resources Helps Staffing Firms Stay Compliant
Since 1992, Madison Resources has helped independent staffing firms handle the payroll side of growth. Our back office services cover payroll processing and invoicing, and our payroll tax processing team helps keep state programs like Washington Paid Leave withheld, reported and paid on time. When higher payroll costs widen the gap between payday and client payment, payroll funding keeps your workers paid on schedule and protects your staffing agency cash flow.
Talk to our team about how we support staffing firms with workers in Washington and across the country.
This article is for general information only and is not legal or tax advice. Speak with your attorney or CPA about your specific situation.
For More Information
- Employer resources: Washington Paid Leave for employers
- Estimate your premiums: Paid Leave premium calculator
- Email updates from ESD: Subscribe to Paid Leave updates
Contact Information
To contact the Washington Employment Security Department about Paid Leave:
- Phone: (833) 717-2273
- Email: paidleave@esd.wa.gov
Madison Resources is committed to being a dependable partner to your staffing firm by sharing timely updates, promoting operational accuracy, and providing practical resources to help you stay ahead in a constantly evolving compliance landscape.
Stay Informed. Stay Compliant. Grow With Confidence.
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Frequently Asked Questions About Washington PFML 2026
Below are answers to some of the most common questions about Washington PFML Updates for 2026.
What Is the Washington PFML 2026 Premium Rate?
The total premium is 1.13% of gross wages, up from 0.92% in 2025. It applies to wages paid on or after January 1, 2026, up to the 2026 Social Security wage cap of $184,500.
How Is the Washington Paid Leave Premium Split Between Employers and Employees?
Employees pay up to 71.43% of the premium through payroll deductions. Employers with 50 or more Washington employees pay about 28.57%. On $1,000 of weekly wages, that works out to about $8.07 from the employee and $3.23 from the employer.
Do Employers With Fewer Than 50 Employees Have to Pay Paid Leave Premiums?
They don’t pay the employer share unless they receive a small business assistance grant. They still have to withhold the employee share, file quarterly reports with wages and hours, and send the premiums to ESD.
Which Employers Must Provide Paid Leave Job Protection in 2026?
Employers with 25 or more employees, for employees who have worked for them at least 180 calendar days. The threshold drops to 15 or more employees in 2027 and 8 or more in 2028.
What Is the Maximum Weekly Paid Leave Benefit in 2026?
$1,647 per week for claims filed on or after January 1, 2026. The minimum weekly benefit is $100, or the employee’s average weekly wage if that is lower.
Do Temporary Employees of a Staffing Firm Qualify for Washington Paid Leave?
Yes. Temps on a staffing firm’s W-2 payroll are covered like any other employee. They qualify for benefits after working 820 hours in Washington during their qualifying period, counting hours from every Washington employer, and they count toward the staffing firm’s employer size.
What Changes for Washington Paid Leave in 2027?
Job protection expands to employers with 15 or more employees, and HB 2345 changes how the employer contribution is divided between the family and medical leave portions of the premium. ESD is scheduled to announce the 2027 rate and the new split by mid-November 2026.
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