Chapter 5, Laws of 2017 65th Legislature PAID FAMILY AND ...

1 CERTIFICATION OF ENROLLMENTSUBSTITUTE SENATE BILL 5975 Chapter 5, Laws of 201765th Legislature2017 3rd Special SessionPAID FAMILY AND medical LEAVEEFFECTIVE DATE: October 19, 2017 -- Except for sections 90 through98, which become effective December 31, by the Senate June 30, 2017 Yeas 37 Nays 12 CYRUS HABIBP resident of the SenatePassed by the House June 30, 2017 Yeas 65 Nays 29 FRANK CHOPPS peaker of the House of RepresentativesCERTIFICATEI, Hunter G. Goodman, Secretary ofthe Senate of the State ofWashington, do hereby certify thatthe attached is SUBSTITUTE SENATEBILL 5975 as passed by Senate andthe House of Representatives on thedates hereon set G. GOODMANS ecretaryApproved July 5, 2017 3:03 PMFILEDJuly 5, 2017 JAY INSLEEG overnor of the State of WashingtonSecretary of State State of WashingtonAN ACT Relating to paid FAMILY and medical leave ; amending , , , and ; reenacting and2amending RCW and ; adding new sections to RCW; adding a new Title to the Revised Code of Washington to be4codified as Title 50A RCW; repealing RCW , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , and ; prescribing penalties; and13providing an effective IT ENACTED BY THE Legislature OF THE STATE OF WASHINGTON:15 NEW SECTION.

2 Sec. 1. INTENT. The Legislature finds that the16demands of the workplace and of families need to be balanced to17promote FAMILY stability and economic security. The Legislature also18finds that families across the state own and operate leave policies are desirable to accommodate changes in the20workforce such as rising numbers of dual-career couples, working21 SUBSTITUTE SENATE BILL 5975 Passed Legislature - 2017 3rd Special SessionState of Washington65th Legislature2017 3rd Special SessionBy Senate Ways & Means (originally sponsored by Senators Fain, Liias,Keiser, Salda a, Miloscia, Cleveland, McCoy, Nelson, Ranker, Conway,Mullet, Hobbs, Takko, Palumbo, Pedersen, and Chase)READ FIRST TIME 06/30 1 SSB parents, and an aging population. In addition the impact of1significant new requirements should be reasonably balanced to help2small businesses Legislature also finds that access to paid leave is4associated with many important health benefits.

3 Research confirms5that paid leave results in decreased infant mortality and more well-6baby visits and reductions in maternal postpartum depression and7stress. The Legislature further finds that paid leave increases the8duration of breastfeeding, which supports bonding, stimulates9positive neurological and psychological development, strengthens a10child's immune system, and reduces the risks of serious or costly11health problems such as asthma, acute ear infections, obesity, Type 212diabetes, leukemia, and sudden infant death syndrome. The legislature13also finds that when fathers have access to paid leave they are more14directly engaged during the child's first few months, thereby15increasing father infant bonding and reducing overall stress on Legislature declares it to be in the public interest to18create a FAMILY and medical leave insurance program to provide19reasonable paid FAMILY leave for the birth or placement of a child20with the employee, for the care of a FAMILY member who has a serious21health condition, and for a qualifying exigency under the federal22family and medical leave act, and reasonable paid medical leave for23an employee's own serious health condition and to reasonably assist24businesses in implementing and maintaining a program to support their25employees and SECTION.

4 Sec. 2. DEFINITIONS. Unless the context clearly27requires otherwise, the definitions in this section apply throughout28this (1) "Child" includes a biological, adopted, or foster child, a30stepchild, or a child to whom the employee stands in loco parentis,31is a legal guardian, or is a de facto parent, regardless of age or32dependency (2) "Commissioner" means the commissioner of the department or34the commissioner's (3) "Department" means the employment security (4)(a) "Employee" means an individual who is in the employment of37an 2 SSB (b) "Employee" does not include employees of the United States (5) "Employee's average weekly wage" means the quotient derived3by dividing the employee's total wages during the two quarters of the4employee's qualifying period in which total wages were highest by5twenty-six.

5 If the result is not a multiple of one dollar, the6department must round the result to the next lower multiple of (6)(a) "Employer" means: (i) Any individual or type of9organization, including any partnership, association, trust, estate,10joint stock company, insurance company, limited liability company, or11corporation, whether domestic or foreign, or the receiver, trustee in12bankruptcy, trustee, or the legal representative of a deceased13person, having any person in employment or, having become an14employer, has not ceased to be an employer as provided in this15chapter; (ii) the state, state institutions, and state agencies; and16(iii) any unit of local government including, but not limited to, a17county, city, town, municipal corporation, quasi-municipal18corporation, or political (b) "Employer" does not include the United States of (7)(a) "Employment" means personal service, of whatever nature,21unlimited by the relationship of master and servant as known to the22common law or any other legal relationship performed for wages or23under any contract calling for the performance of personal services,24written or oral, express or implied.

6 The term "employment" includes25an individual's entire service performed within or without or both26within and without this state, if:27(i) The service is localized in this state; or28(ii) The service is not localized in any state, but some of the29service is performed in this state; and30(A) The base of operations of the employee is in the state, or if31there is no base of operations, then the place from which such32service is directed or controlled is in this state; or33(B) The base of operations or place from which such service is34directed or controlled is not in any state in which some part of the35service is performed, but the individual's residence is in (b) "Employment" does not include:38(i) Self-employed individuals;39p. 3 SSB (ii) Services for remuneration when it is shown to the1satisfaction of the commissioner that:2(A)(I) Such individual has been and will continue to be free from3control or direction over the performance of such service, both under4his or her contract of service and in fact; and5(II) Such service is either outside the usual course of business6for which such service is performed, or that such service is7performed outside of all the places of business of the enterprises8for which such service is performed; and9(III) Such individual is customarily engaged in an independently10established trade, occupation, profession, or business, of the same11nature as that involved in the contract of service.

7 Or12(B) As a separate alternative:13(I) Such individual has been and will continue to be free from14control or direction over the performance of such service, both under15his or her contract of service and in fact; and16(II) Such service is either outside the usual course of business17for which such service is performed, or that such service is18performed outside of all the places of business of the enterprises19for which such service is performed, or the individual is20responsible, both under the contract and in fact, for the costs of21the principal place of business from which the service is performed;22and23(III) Such individual is customarily engaged in an independently24established trade, occupation, profession, or business, of the same25nature as that involved in the contract of service, or such26individual has a principal place of business for the work the27individual is conducting that is eligible for a business deduction28for federal income tax purposes; and29(IV) On the effective date of the contract of service, such30individual is responsible for filing at the next applicable filing31period, both under the contract of service and in fact, a schedule of32expenses with the internal revenue service for the type of business33the individual is conducting.

8 And34(V) On the effective date of the contract of service, or within a35reasonable period after the effective date of the contract, such36individual has established an account with the department of revenue,37and other state agencies as required by the particular case, for the38business the individual is conducting for the payment of all state39taxes normally paid by employers and businesses and has registered40p. 4 SSB and received a unified business identifier number from the state1of Washington; and2(VI) On the effective date of the contract of service, such3individual is maintaining a separate set of books or records that4reflect all items of income and expenses of the business which the5individual is conducting; or6(iii) Services that require registration under Chapter RCW7or licensing under Chapter RCW rendered by an individual when:8(A) The individual has been and will continue to be free from9control or direction over the performance of the service, both under10the contract of service and in fact.

9 11(B) The service is either outside the usual course of business12for which the service is performed, or the service is performed13outside of all the places of business of the enterprise for which the14service is performed, or the individual is responsible, both under15the contract and in fact, for the costs of the principal place of16business from which the service is performed;17(C) The individual is customarily engaged in an independently18established trade, occupation, profession, or business, of the same19nature as that involved in the contract of service, or the individual20has a principal place of business for the business the individual is21conducting that is eligible for a business deduction for federal22income tax purposes, other than that furnished by the employer for23which the business has contracted to furnish services;24(D) On the effective date of the contract of service, the25individual is responsible for filing at the next applicable filing26period, both under the contract of service and in fact, a schedule of27expenses with the internal revenue service for the type of business28the individual is conducting.

10 29(E) On the effective date of the contract of service, or within a30reasonable period after the effective date of the contract, the31individual has an active and valid certificate of registration with32the department of revenue, and an active and valid account with any33other state agencies as required by the particular case, for the34business the individual is conducting for the payment of all state35taxes normally paid by employers and businesses and has registered36for and received a unified business identifier number from the state37of Washington;38(F) On the effective date of the contract of service, the39individual is maintaining a separate set of books or records that40p. 5 SSB all items of income and expenses of the business that the1individual is conducting; and2(G) On the effective date of the contract of service, the3individual has a valid contractor registration pursuant to RCW or an electrical contractor license pursuant to (8) "Employment benefits" means all benefits provided or made7available to employees by an employer, including group life8insurance, health insurance, disability insurance, sick leave , annual9leave, educational benefits, and pensions except benefits that are10provided by a practice or written policy of an employer or through an11employee benefit plan as defined in 29 Sec.