Several states have a paid family leave program, including Oregon. Read on to learn more about the new Oregon paid family leave program and how it impacts your business.
Overview of paid family leave
Paid family leave (PFL) requires employers to let employees take paid time off for qualifying events. State PFL programs differ from the federal Family and Medical Leave act of 1993.
Employers with 50 or more employees must also provide unpaid time off for family and medical leave under the federal Family and Medical Leave Act of 1993 (FMLA). FMLA does not require employers to give paid family and medical leave.
Oregon paid family leave
Oregon paid family leave is a program that grants eligible Oregon employees up to 12 weeks of paid time off for family or medical leave or to address a domestic violence situation.
Let’s take a look at some answers to your burning Oregon PFL questions below.
Which employees are eligible for Oregon PFL?
An employee who has earned at least $1,000 in wages in the calendar year is eligible for Oregon paid family leave. Both full-time and part-time employees can qualify for Oregon paid family leave.
Oregon employees can use PFL to:
- Bond with a child (birth, adoption, or foster care placement)
- Recover from a serious illness
- Care for a loved one recovering from a serious illness
- Deal with issues related to domestic violence, harassment, sexual assault, or stalking
Oregon states that “any individual related by blood or affinity whose close association with a covered individual is the equivalent of a family relationship.” This means that Oregon defines the following as family members:
- Spouse
- Domestic partner
- Child
- Parent
- Parent-in-law
- Sibling
- Grandparent
- Grandchild
- Any individual related to the employee by blood
- Any individual who’s the equivalent of a family member.
Who is exempt from Oregon PFL?
Oregon PFL is both an employee and employer program. All employers, regardless of size, must withhold the employee portion from employees’ wages. However, not all employers must contribute the employer portion.
Employers with more than 25 employees must contribute to Oregon PFL. Employers with fewer than 25 employees are not obligated to pay the employer contribution.
Employers who want to provide benefits through a private plan can apply for an exemption. Private plans must offer equal or greater benefits to employees.
What are the Oregon PFL contribution rates?
Both you and your employees must contribute to the program. Again, employers with less than 25 employees are not required to contribute but must still collect and submit employee contributions.
The Oregon PFL contribution rate for 2024 is 1.0%, split between employees and qualifying employers.
Applicable employers must contribute 40% of the rate (i.e., 0.40% of the 1.0% rate), while employees cover the remaining 60% (i.e., 0.60% of the 1.0% rate). Employers can also elect to pay their employees’ contributions on their behalf.
Employers are responsible for remitting both the employee and employer contributions to the state.
For more information about Oregon’s paid family leave, check out their website.
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This article has been updated from its original publication date of September 23, 2019.
This is not intended as legal advice; for more information, please click here.
