Washington Disability Insurance laws & compensation compliance analysis

Washington Disability Insurance: What you need to know

Disability insurance pays wage replacement benefits to employees who are not working because of non-job-related accidents or illnesses. (Workers' compensation covers job-related injuries.) It also provides coverage for employees who may not be eligible for workers' compensation, or it may supplement workers' compensation.
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A few states have laws that require employers to provide disability insurance, but Washington is not among them. Washington employers may provide such insurance, but they are not required to do so. State law may require specific provisions in a group disability policy sold by insurers in Washington.
However, Washington state has become the first to establish a state-operated long-term care (LTC) insurance program. Starting January 1, 2025, qualified employees who need LTC will be able to access benefits up to $100 per day (maximum lifetime limit of $36,500) to pay for a range of services and support for 1 year (2021 HB 1323).
Beginning January 1, 2022, the program will be funded by an uncapped 0.58 percent payroll tax on all employee compensation, including wages, bonuses, stock-based compensation, paid time off, and severance pay. Employers must collect the tax from employees through payroll deductions and remit the funds to the state Employment Security Department (ESD) (Wash. Rev. Code Sec. 50B.04.080). Employers can elect to pay part or all of this tax on employees’ behalf, but are not required to do so.
All individuals employed in Washington must pay the tax except (1) self-employed individuals, (2) employees of federally recognized tribes, (3) certain collectively bargained employees, and (4) employees who opt out of the program and qualify for an exemption. ...

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Washington Disability Insurance Resources

Type Title
Checklists Disability Insurance Checklist
Policies Short-term Disability Pay
See all Disability Insurance Resources