What Happened?

As a reminder for employers with workers in Washington, the Employment Security Department adopted a rule on January 14, 2026, updating the Paid Family and Medical Leave (PFML) regulations. The rule directs employers to Washington’s mass layoff and business closing law when making employment decisions affecting employees on PFML. Under that law, employees who are currently on Paid Family and Medical Leave generally may not be included in a mass layoff, unless a limited statutory exception applies.

Overview

• Why the rule was adopted: It implements Engrossed Substitute Senate Bill 5525 (2025), now codified in Revised Code of Washington chapter 49.45, which sets requirements for mass layoffs and business closings and includes a protection for employees currently on Paid Family and Medical Leave.

• What changed in the Paid Family and Medical Leave rules: The rule amends Washington Administrative Code section 192-700-010 (“Can an employer deny employment restoration?”). The amendment adds a cross-reference to Revised Code of Washington chapter 49.45, linking PFML employment restoration decisions to the state’s mass layoff and business closing requirements.

• What the cross-reference does: The amendment does not create a new PFML benefit or expand leave rights. Instead, it directs employers and readers of the PFML rules to the controlling mass layoff law when evaluating whether an employee on PFML can be denied restoration due to a layoff or business closure.

Why this matters:

• If an employer denies job restoration after Paid Family and Medical Leave because a position was eliminated, that decision must now be evaluated alongside Washington’s mass layoff and business closing law (RCW 49.45).

• The update helps prevent employers from unintentionally selecting employees who are actively on PFML for inclusion in a mass layoff when state law generally limits doing so.

• Layoff planning that does not account for PFML status may create compliance risk, even when the layoff decision is otherwise legitimate.

Key Risks for Employers

• Wrongly including an employee on Paid Family and Medical Leave in a mass layoff: The underlying law provides protection against this except under limited statutory circumstances.

• Denying employment restoration without following the updated rule structure: When a position is eliminated during or after Paid Family and Medical Leave, employers must look beyond the PFML restoration rule and confirm that denying restoration is allowed under Washington’s mass layoff law (WAC 192-700-010; RCW chapter 49.45).

• Missing required written notice when denying restoration: If an employer denies restoration under section 192-700-010 (1)(a) or (1)(b), the employer must give written notice as soon as the decision is made, delivered in person or by certified mail, and include specific statements and dates (including health benefit end date).

Bottom Line: Layoffs in Washington require special review when employees are on Paid Family and Medical Leave. PFML status can restrict layoff selection and limit when job restoration may be denied, even if a position is eliminated.

Source References

• Washington PFML – Implementation of Engrossed Substitute Senate Bill 5525
• Washington Enacts Mini-WARN Law Requiring 60-Day Layoff Notices (VensureHR)

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