A new major program called Paid Leave Oregon will affect ALL nonprofit employers. The program allows workers to take up to 12 weeks of paid time off for family, medical and “safe” leave (victims of sexual assault, domestic violence, harassment or stalking). All employers except federal and tribal governments are required to participate in the program. Paid Leave Oregon is funded by contributions made by employers and employees into the program.
Nearly all employees in Oregon are eligible for benefits. Employees who made $1,000 or more the year before applying for Paid Leave and are experiencing a qualifying event may be eligible. Whether an employee works a full-time, part-time, or seasonal job – or for more than one employer – they may be eligible.
Employers are responsible for sending contributions to the state. For 2023, the contribution rate is 1% of each employee’s wages.
Employee Count Calculation Updated
Paid Leave Oregon changed the way employees are counted based on partner and community feedback. This change aligns Paid Leave more closely with the way employees are counted for the Unemployment Insurance program. The rules are available online under definitions and methods, and there is a guide and chart to help employers determine their employee count.
- Previously, employer size was counted as the average number of employees over the previous four quarters using payroll reports.
- Now, employers count their size using the average number of employees on the 12th of each month from the previous twelve months. This means there are twelve numbers to calculate the average instead of just four.
Employers – 25 or more employees
Employers with 25 or more employees are required to pay the employer portion of Paid Leave Oregon contributions. Employers and employees share the costs, which means employers will pay 40% of the contribution and employees will pay 60%.
Small Employers – less than 25 employees
Small employers of less than 25 employees will also participate in the program, no matter the size of a nonprofit. They are not required to pay the employer portion of Paid Leave Oregon contributions but will still need to submit the employees’ full contribution amount.
- Even though small employers do not make payments, their employees are still covered and get the same benefits.
- Payments are still taken from employee paychecks and employers still collect/submit them.
- If a small employer chooses to make the employee payments, they can apply for an assistance grant that helps cover costs, such as hiring a temporary worker when an employee takes leave.
While on leave, Paid Leave Oregon pays the employee an amount of their wages. The employer does not pay them. The amount an employee gets paid will depend on how much they have earned. Some employees may receive 100% wage replacement. Employees’ jobs are protected and have the right to return to the same job role if they’ve worked for more than 90 days.
According to labor and employment law firm Oglegree Deakins, employees may choose to exhaust their accrued paid time off or protected sick leave under the Oregon Paid Sick Time Law, before applying for Paid Leave Oregon benefits. An employee may also use accrued paid time off and paid sick leave to top off Paid Leave Oregon benefits if the weekly benefits are less than the employee’s weekly wages. However, employers may not require employees to exhaust paid time off and paid sick time before applying for Paid Leave Oregon benefits.
Rules Governing PFMLI – Littler (HR Compliance legal services)
Littler provides a summary of the more notable rules governing the PFMLI program to include the process to apply for benefits, covered uses, and verification of eligibility.
Equivalent Plan Option
Employers have the option of submitting an equivalent plan for approval by Paid Leave Oregon. This would be a plan offered by an employer that offers benefits that are equal to or greater than the benefits provided by Paid Leave Oregon. Equivalent plan applications are now being accepted. See resources below for how to submit an application, what qualifies as an equivalent plan, and types of equivalent plans employers may provide.
Important Dates
Starting Jan. 1, 2023, employers will be required to start withholding contributions for Paid Leave Oregon and nonprofit employers with 25 or more employees will start paying into the program. Employers are also required to post the model notice poster at each work site and must provide it electronically or by mail to any remote workers by January 1, 2023.
Download the model notice poster found on the resources page
Starting with the first quarter of 2023, employers will report Paid Leave Oregon subject employee wages, employee contributions based on those wages, and employer contributions on a revised Form-OQ (Oregon Combined Quarterly Report). The Form OQ is filed with OED through Frances Online.
Also starting with the first quarter of 2023, contribution payments will be made to the Oregon Department of Revenue (DOR) on or before the due date of the Oregon Combined Quarterly Report (the last day of the month following the quarter to which the report relates). Employers will also begin reporting Statewide Transit Tax withholding on the Combined Quarterly Report. However, annual Statewide Transit Tax filers will continue to file through Revenue Online or by paper using the Form STT-A. Statewide Transit Tax reporting for tax periods prior to the first quarter 2023 are still reported through the current process directly to DOR in Revenue Online or using the old paper reports (e.g. Form STT-1, Form STT-2, Form STT-A).
The payment voucher, Form OR-OTC-V, and Revenue Online, have been revised to include a line for employers to make their Paid Leave Oregon and Statewide Transit Tax payments. Employers will have the same payment options currently available—ACH, Revenue Online, cash, check, or money order. The best way to pay is electronically on Revenue Online.
On September 3, 2023, employees can start applying for benefits.
For More Information
Email: [email protected]
Phone: 833-854-0166 (toll-free)
Form: Contact Us
Paid Leave Oregon – Program website
Employer Guidebook – Paid Leave Oregon program details to include employer responsibilities, contributions, benefits, and assistance grants