The bill creates a new statute in chapter 41.04 RCW that allows state and local government employees to use accrued paid leave as a supplemental benefit while they are on approved paid family and medical leave under Title 50A RCW. It caps combined payments so that the sum of the family or medical leave benefit and the supplemental paid leave may not exceed the employee’s salary or average hourly rate. The bill also prohibits including leave paid as that supplemental benefit in the weekly claim submitted to the Employment Security Department. The act takes effect July 1, 2027. This is a new statutory provision affecting benefits and administrative procedure: it authorizes a supplemental pay option, sets a limit on combined pay, and imposes a reporting prohibition for weekly claims. The text does not create any new crimes or change criminal penalties. The provision specifically affects state and local government employees, the paid family and medical leave program under Title 50A RCW, and the Employment Security Department. Important gaps in the provided text: no specific section number within chapter 41.04 RCW is given; the bill does not define how to calculate “salary or average hourly rate,” does not include eligibility or other rules from Title 50A RCW, and does not provide enforcement, administrative, or calculation details. It is unclear whether related provisions appear elsewhere.

If enacted July 1, 2027, state and local government employees on approved paid family and medical leave could choose to use their accrued paid leave to top up their state leave benefit so that their combined pay does not exceed their salary or average hourly rate, and those supplemental leave payments must not be included in the weekly claim sent to the Employment Security Department. That effectively lets employees maintain pay up to their regular wage while on leave, subject to the combined-payment cap. The people most affected are state and local employees who take family or medical leave and the payroll/HR offices that administer those leaves. Employees gain a new option to preserve income; employers will need to pay and track supplemental leave and change reporting so those payments are excluded from weekly ESD claims. Important details are missing from the text provided—how to calculate “salary or average hourly rate,” specific procedures, and how Title 50A eligibility interacts—so agencies will likely have to create rules and guidance before implementation.