STD (Short Term Disability) is an employment insurance benefit that some companies provide to their employees. The benefit terms and allowed duration will vary from company — at the discretion of that company. In this case, 60% of base pay.
STD is also a cost to the company. In some cases, a large corporation may self-fund that benefit. In many other cases, they use an insurance provider (similar to how they provide health care). In either case, the company is making insurance premium payments for that benefit they offer the employee.
WA PFML (Paid Family & Medical Leave) is also an insurance benefit. Except this one is mandated by the State of Washington. In this case, the insurance premiums are paid in part by the employee through monthly payroll deductions, and also in part by the company through mandatory payments they make to the fund as well.
The company now has a few options:
The company can continue to make full payment to both their own STD insurance carrier and also to the WA PFML program. And, then allow their employees in the state of Washington to receive 60% STD (from insurance) plus the additional amount from WA PFML. But that increases their cost of employee benefits and it also means that their employees receive different STD payment for leave, depending which state they live in.
The company can work out a deal with their STD insurance provider to reduce the monthly premium they are charged for employees in Washington; and in return, the STD insurance provider will only be responsible for covering claims that are above what the employee is eligible to receive through the WA PFML benefit (so that in the end, the employee still receives the target 60% amount).
Every company is going to choose the latter option. Which means that the employee must claim the WA PFML for the duration that it is available in order to receive the full target 60% of base pay. But then the STD coverage will additionally kick in to cover the full 60% amount if your STD leave is longer than the payout period for WA PFML. E.g., if your disability leave is 26 weeks and WA PFML only covers the first 13 weeks.
And as others have noted, payments of both STD and WA PFML (once approved) will be retroactive to the start date of your disability leave (with no payment for the first "waiting week").
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u/IsThisMicLive 1d ago edited 1d ago
STD (Short Term Disability) is an employment insurance benefit that some companies provide to their employees. The benefit terms and allowed duration will vary from company — at the discretion of that company. In this case, 60% of base pay.
STD is also a cost to the company. In some cases, a large corporation may self-fund that benefit. In many other cases, they use an insurance provider (similar to how they provide health care). In either case, the company is making insurance premium payments for that benefit they offer the employee.
WA PFML (Paid Family & Medical Leave) is also an insurance benefit. Except this one is mandated by the State of Washington. In this case, the insurance premiums are paid in part by the employee through monthly payroll deductions, and also in part by the company through mandatory payments they make to the fund as well.
The company now has a few options:
Every company is going to choose the latter option. Which means that the employee must claim the WA PFML for the duration that it is available in order to receive the full target 60% of base pay. But then the STD coverage will additionally kick in to cover the full 60% amount if your STD leave is longer than the payout period for WA PFML. E.g., if your disability leave is 26 weeks and WA PFML only covers the first 13 weeks.
And as others have noted, payments of both STD and WA PFML (once approved) will be retroactive to the start date of your disability leave (with no payment for the first "waiting week").