Oregon’s Paid Family and Medical Leave Law will have a significant impact on employers, so they should begin preparing for budget implications as well as the administrative changes that will be required. Effective dates for provisions under the new law range from January 2022 to January 2023.

Oregon is the eighth state to adopt a paid family leave law, but is the first state to require that low-income workers be paid 100% of their wages while on leave, up to 65% of the state average weekly wage, calculated at $1,044.40 for the period July 1, 2019, to June 30, 2020. Benefits will be capped at 120% of the state average weekly wage.

The Paid Family and Medical Leave Program is modeled after Oregon’s unemployment insurance program and will be administered by the Oregon Employment Department.

Nearly all Oregon employees will qualify
Paid family leave will be available to nearly all Oregon employees with any employee earning at least $1000 per year being eligible to submit a claim. The leave will be available to four groups of employees: new parents, victims of domestic violence, employees suffering from a serious medical condition, and employees who need time to care for ill family members. The law defines family member broadly to include spouses, domestic partners, children, parents, siblings, grandparents, grandchildren, and "any individual related by blood or affinity whose close association with a covered employee is the equivalent of a family relationship."

How the Program is funded
Employers and employees will both fund the new program through payroll assessments with 60% of the contribution paid by employees and 40% of the contribution paid by employers with at least 25 employees. Employers with fewer than 25 employees are not taxed for the program, but may receive grant funds if they contribute voluntarily.

UEA will continue to update members, as the state rulemaking process continues.
Primary considerations for employers.

Here are the main requirements of the Law that employers should be aware of:

• Provides up to 12 weeks of paid leave, with up to an additional six weeks of unpaid leave in special circumstances) for child bonding, employee or family member’s serious health condition, or “safe” leave (effective January 1, 2023);
  
• Requires all employers with 25 or more employees to contribute to the fund in an amount not to exceed 1% of employee wages (max. $132,000 in wages) (effective January 1, 2022);
  
• Requires all employees to contribute into the fund (effective date January 1, 2022);and
  
• Adds anti-discrimination, anti-retaliation protection (effective date January 1, 2023).

Members looking for more information on this rule can reach out to UEA’s Employment Law attorneys for support .More information is also available on the Oregon government website. 

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