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AWB flags solvency risks for paid-family leave and unemployment insurance; minimum-wage proposals surface
Summary
James Crandall of AWB outlined solvency concerns for paid-family-leave premiums approaching a 1.2% cap, a proposed average workers' compensation rate increase and potential unemployment-insurance reserve shortfalls, and said minimum-wage and paid-leave proposals merit close tracking.
James Crandall, AWB appointment and labor law lead, told the panel several labor-policy items will be central during the 2026 session. He said proposals under discussion include raising the minimum wage to "$25 an hour, by 2031," and adding three weeks of paid time off. Crandall described those items as significant and controversial.
Crandall warned of program solvency pressures in state social-insurance programs. On paid-family leave he said the program's premium rate "is approaching a cap of 1.2% premium, which after that, the program becomes insolvent." He said he expects discussions about premium-rate increases and structural fixes.
On workers' compensation he noted a recent announcement of a "4.9% across the board average rate increase" and that the agency is proposing to buy that rate down with about "$240,000,000" from contingency reserves, which masks a larger underlying projected rate increase around 13 percent.
Crandall also said new unemployment-insurance projections suggest contingency funds might be insufficient to avoid statutorily required solvency surcharges if reserves drop below seven months.
He invited employers to bring examples of impacts to AWB staff and to participate in follow-up work to inform policy options.
Next steps: AWB will track legislative proposals and collect member examples to present to lawmakers and committees.
