What Benefits Are Washington Employers Required to Provide?
Written by Montiae Couse · Last reviewed
Short answer
Washington employers must take part in several state programs and follow certain leave rules, but they are not generally required to provide everything people think of as an employee benefits package. What applies depends on things like employer size, which employees are eligible and whether the employer already sponsors a plan. Health insurance is the clearest example: Washington law does not generally require employers to offer it, while federal ACA rules can apply to applicable large employers.
What you need to know
- Many of these are not “benefits” the employer chooses. They are state programs, required insurance systems, required leave and payroll-funded programs.
- Nearly every Washington employer has a role in Paid Family & Medical Leave, WA Cares, paid sick leave, workers’ compensation and unemployment insurance.
- Some federal rules apply only under certain conditions, such as the ACA for applicable large employers, COBRA for employers with 20 or more employees that have a group health plan, and FMLA for covered employers and eligible employees.
- Dental, vision, life, disability, accident and other voluntary benefits are generally the employer’s choice.
- Retirement is not fully optional for every employer: Washington Saves is scheduled to begin in 2027 for certain employers that do not offer a qualified retirement plan.
- Contracts, collective bargaining agreements, plan documents and local laws can add obligations.
“Benefits” covers several different kinds of requirements
Employers usually ask this as a benefits question, so that is how the title puts it. The more precise answer is that a Washington employer deals with several different categories, and only some of them are benefits the employer provides:
- Employer-provided benefits, such as a health plan or life insurance the employer chooses to offer
- State-administered programs, such as Washington Paid Family & Medical Leave, where the state pays the benefit
- Required insurance systems, such as workers’ compensation and unemployment insurance
- Required leave, such as Washington paid sick leave
- Payroll-funded programs, such as WA Cares, where the employer withholds employee premiums
- Federal requirements that apply only under certain conditions, such as the ACA, COBRA and FMLA
Social Security, Medicare and federal unemployment tax are payroll taxes rather than benefits, so this guide does not cover them.
The short version: required, conditional and optional
- Required for nearly every employer: Paid Family & Medical Leave, WA Cares, paid sick leave, workers’ compensation and unemployment insurance.
- Required when certain conditions apply: ACA employer shared responsibility, COBRA, FMLA, parts of Paid Leave that depend on employer size, and Washington Saves once it begins.
- Generally optional: health insurance for employers not subject to the ACA employer rules, and dental, vision, life, disability, accident and other voluntary benefits.
Washington employer requirements at a glance
- Washington Paid Family & Medical Leave
- When it appliesEmployers of every size
- Employer’s roleCollect premiums and report quarterly; employers with 50+ employees also pay an employer share; job protection applies at a set employer size
- What the employee receivesPartial wage replacement from the state for qualifying family or medical leave
- TypeState-administered program
- More informationWashington Paid Leave (ESD)
- Washington paid sick leave
- When it appliesNearly all employees, including part-time, temporary and seasonal
- Employer’s roleAt least 1 hour of paid sick leave per 40 hours worked; carry over unused balances of 40 hours or less
- What the employee receivesPaid time off for qualifying reasons
- TypeRequired leave
- More informationWashington L&I
- Workers’ compensation
- When it appliesMost employers with workers; special rules apply to some groups
- Employer’s roleObtain coverage through L&I, or qualify as a certified self-insured employer; pay premiums, part of which workers may share
- What the employee receivesMedical care and wage replacement for work-related injuries and illnesses
- TypeRequired insurance system
- More informationWashington L&I
- Unemployment insurance
- When it appliesMost employers with employees working in Washington
- Employer’s rolePay state unemployment taxes, or, for reimbursable employers, reimburse benefits paid
- What the employee receivesTemporary benefits for eligible workers who lose work
- TypeState insurance program funded by employers
- More informationWashington ESD
- WA Cares Fund
- When it appliesMost employees, unless exempt
- Employer’s roleWithhold the employee premium and report wages and hours quarterly; no required employer share
- What the employee receivesA state long-term care benefit, subject to program rules
- TypePayroll-funded state program
- More informationWA Cares Fund
- ACA employer shared responsibility
- When it appliesApplicable large employers
- Employer’s roleOffer qualifying coverage to full-time employees and dependents, or potentially owe a payment
- What the employee receivesAccess to employer health coverage, if offered
- TypeFederal, conditional
- More informationIRS
- COBRA
- When it appliesGroup health plans of employers with 20+ employees in the prior year
- Employer’s roleOffer temporary continuation coverage when plan coverage would otherwise end
- What the employee receivesThe option to keep group health coverage temporarily; the person may be required to pay up to 102% of the cost
- TypeFederal, conditional
- More informationU.S. Department of Labor
- FMLA
- When it appliesPrivate employers with 50+ employees in 20+ workweeks; public agencies and schools. Employees must separately qualify
- Employer’s roleProvide job-protected leave to eligible employees and continue group health coverage
- What the employee receivesJob-protected leave, unpaid unless paid leave is used at the same time
- TypeFederal, conditional
- More informationU.S. Department of Labor
- Washington Saves
- When it appliesComing in 2027, for certain employers without a qualified retirement plan
- Employer’s roleFacilitate employee participation and payroll deductions; employers may not contribute through the program
- What the employee receivesA state-facilitated retirement savings account the employee can opt out of
- TypeState program, conditional and upcoming
- More informationWashington Saves
This table is a summary. Each program has its own eligibility rules, exceptions and current figures, and the agency’s current pages control.
Are Washington employers required to offer health insurance?
No, Washington state law does not generally require employers to offer health insurance. Federal rules can still apply, depending on the employer’s size.
Under the Affordable Care Act’s employer shared responsibility provisions, an applicable large employer (ALE) must either offer affordable, minimum-value health coverage to its full-time employees and their dependents or potentially make an employer shared responsibility payment to the IRS. Whether a payment is owed depends on whether qualifying coverage is offered and on other conditions.
An employer is generally an ALE if it averaged at least 50 full-time employees, including full-time equivalent employees, during the prior calendar year. The IRS treats an employee averaging at least 30 hours a week as full-time. Part-time employees’ hours are combined into full-time equivalents to help determine ALE status, but that does not mean every part-time employee counted in the calculation must receive an offer of coverage.
Related employers, such as companies under common ownership, may need to be counted together under the IRS aggregation rules.
So an employer with 50 workers is not automatically required to provide health insurance, and an employer with fewer workers may be an ALE once full-time equivalents and related employers are counted. A tax or benefits professional can confirm ALE status.
Requirements for nearly every Washington employer
Washington Paid Family & Medical Leave
Washington Paid Leave states that employers of every size must collect premiums and submit reports each quarter. Employers with fewer than 50 employees do not have to pay the employer share of the premium. Employees apply directly with the state, which pays the benefit. Employers also have notice duties, and job protection applies to eligible employees at employers above a size threshold.
Read Washington Paid Leave: An Employer’s Guide →
Washington paid sick leave
The Department of Labor & Industries requires employers to provide at least one hour of paid sick leave for every 40 hours an employee works, regardless of full-time, part-time, temporary or seasonal status. Unused balances of 40 hours or less must carry over to the next year. Employers may provide more. L&I lists limited exceptions to who is covered.
Workers’ compensation
Washington employers with workers are generally responsible for workers’ compensation coverage, purchased through L&I unless the employer is a certified self-insured employer. L&I states that Washington does not allow private workers’ compensation coverage. Workers’ comp covers medical care and partial wage replacement for work-related injuries and illnesses. Unlike most states, Washington lets workers share part of the premium: L&I explains that the employer pays the Accident Fund portion entirely, while the Medical Aid, Stay at Work and Supplemental Pension portions are split equally between employer and employee. L&I has special rules for some groups, such as corporate officers, LLC members, independent contractors and out-of-state workers.
How workers’ comp differs from disability insurance →
Unemployment insurance
Unemployment insurance is a state insurance program, not a benefit an employer selects. The Employment Security Department states that if you have employees working in Washington, you likely pay unemployment taxes on their wages. Some employers, called reimbursable employers, instead reimburse the state for unemployment benefits paid to former employees.
WA Cares Fund
WA Cares is a state long-term care program funded by employee payroll premiums. It is not employer-provided long-term care insurance. Employers withhold the employee premium and report wages and hours to the state. WA Cares states that employers do not pay a share of the premium, although an employer can choose to pay some or all of the employee’s share. Some employees qualify for exemptions; WA Cares explains how they work.
Requirements that apply only in certain situations
COBRA
COBRA does not require an employer to create or offer a group health plan. It applies to plans that already exist. The U.S. Department of Labor states that COBRA generally requires group health plans sponsored by employers with 20 or more employees in the prior year to offer employees and their families a temporary extension of coverage, called continuation coverage, in certain situations where coverage would otherwise end, such as job loss or reduced hours. People who elect it may be required to pay the entire premium, up to 102% of the cost to the plan.
FMLA
The federal Family and Medical Leave Act provides job-protected leave for qualifying reasons. It is separate from Washington Paid Leave, the state program that pays partial wage replacement. The Department of Labor describes FMLA leave as unpaid, although it may be used at the same time as employer-provided paid leave. Employer coverage and employee eligibility are separate tests. Covered employers include private-sector employers with 50 or more employees in 20 or more workweeks in the current or previous calendar year, plus public agencies and schools. An employee of a covered employer is eligible after at least 12 months with the employer and 1,250 hours of service in the 12 months before leave, at a location where the employer has at least 50 employees within 75 miles. Eligible employees can generally take up to 12 workweeks of leave in a 12-month period, with group health coverage continued.
Washington Saves
Washington Saves is a state retirement savings program that the program says is coming in 2027. Certain Washington employers that do not offer a qualified retirement plan will have responsibilities under it. Employees 18 or older are enrolled automatically but can opt out. The employer’s role is administrative: registering, sharing program information, facilitating enrollment and processing employee payroll contributions. State law prohibits employers from contributing funds to employees’ accounts through the program. The official Washington Saves site lists which employers must participate and will announce when employers can enroll.
Which benefits can Washington employers generally choose to offer?
Outside the requirements above, most benefits are the employer’s choice. Generally, these include:
- Health insurance, for employers not subject to the ACA employer shared responsibility rules
- Dental and vision coverage
- Life insurance
- Disability insurance
- Accident, critical illness and hospital indemnity (fixed-benefit) coverage
- Other voluntary benefits
- A retirement plan, with one qualification: once Washington Saves begins, a covered employer that does not offer a qualified retirement plan will have duties under the state program instead
Disability insurance is a common source of confusion. Washington Paid Leave is a state program, not private disability insurance, and workers’ comp covers only work-related injuries and illnesses. Private short-term and long-term disability coverage is generally optional.
When an optional benefit becomes an obligation
A benefit that Washington law does not generally require can still become an employer obligation. Common examples include a collective bargaining agreement, an employment contract, the employer’s own plan documents, applicable federal law, public-sector rules and industry-specific requirements. Union employers, for example, may have benefit contributions set by their agreements.
Local requirements can also apply on top of statewide rules. For example, Seattle’s Paid Sick and Safe Time ordinance sets its own requirements for employees who work in Seattle.
How this fits with what you already offer
Knowing what is required is the starting point. The next step is reviewing what your organization currently provides on top of it, and where employees may need it explained. The Benefits Checkup is a short review that helps you see that picture. It is not a legal compliance audit.
Prefer a written plan? See the Benefits Blueprint →
This guide is educational information, not legal, tax or ERISA advice, and BetterTeamHQ is not a government agency. Requirements and figures change. For decisions about your organization, check the agency pages listed below and consult a qualified legal, tax or compliance professional.
Common questions
What benefits are employers required to provide in Washington?
Nearly every Washington employer must take part in Paid Family & Medical Leave, provide paid sick leave, have workers’ compensation coverage through L&I or certified self-insurance, pay unemployment taxes and withhold WA Cares premiums. Other requirements, such as the ACA, COBRA and FMLA, apply only under certain conditions.
Are Washington employers required to offer health insurance?
No, Washington state law does not generally require employers to offer health insurance. However, under the federal ACA, an applicable large employer must either offer qualifying coverage to full-time employees or potentially owe an employer shared responsibility payment.
Does a small business in Washington have to offer employee benefits?
A small business still has to take part in the required state programs and provide paid sick leave, but it generally does not have to offer health, dental, vision, life or disability insurance. Employers with fewer than 50 employees also do not pay the employer share of Paid Leave premiums.
Do Washington employers have to provide paid sick leave?
Yes. Employers must provide at least one hour of paid sick leave for every 40 hours worked, and carry over unused balances of 40 hours or less to the next year. Limited exceptions apply.
Is disability insurance required in Washington?
No, private short-term or long-term disability insurance is generally not required. Washington Paid Leave is a separate state program, and workers’ compensation covers only work-related injuries and illnesses.
Are life insurance, dental and vision required in Washington?
No, they are generally optional. A collective bargaining agreement, employment contract or plan document can still require them in specific cases.
Does Washington require employers to offer a retirement plan?
Not directly. Washington Saves is coming in 2027, according to the program, and certain employers that do not offer a qualified retirement plan will need to facilitate employee participation and payroll deductions in the state program.
Sources
- Washington Paid Leave — Employers
- Washington Department of Labor & Industries — Paid sick leave
- Washington Department of Labor & Industries — Do I need a workers’ comp account?
- Washington Department of Labor & Industries — About self-insurance
- Washington Employment Security Department — Employer’s guide to paying unemployment taxes
- Washington Department of Labor & Industries — Unique premium rating features in Washington (premium shares)
- WA Cares Fund — Employers
- WA Cares Fund — Exemptions
- IRS — Determining if an employer is an applicable large employer
- IRS — Employer shared responsibility provisions
- U.S. Department of Labor — COBRA continuation coverage
- U.S. Department of Labor — Family and Medical Leave Act
- U.S. Department of Labor — FMLA frequently asked questions
- U.S. Department of Labor — Fact Sheet #28: The Family and Medical Leave Act
- Washington Saves — Employers
- RCW 19.05.010 — Washington Saves definitions
- RCW 19.05.030 — Washington Saves program requirements and employer duties
- Seattle Office of Labor Standards — Paid Sick and Safe Time
Coverage depends on eligibility, policy terms, applicable programs and individual circumstances.
Educational information only, not legal or tax advice. Check official sources for current program rules.
Written by Montiae Couse
Licensed Washington Insurance Producer · Life & Disability · WAOIC #1382988 · Verify license
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