Oregon Paid Family and Medical Leave Insurance

Payroll Deductions Begin Jan. 1, 2023 / Waiver Requests due by Nov. 30, 2022

Hello! 

ORS 657B was enacted in 2019, creating a Paid Family and Medical Leave Insurance (PFMLI) program housed within the Oregon Employment Department.

Funded by a shared, 1% employer/employee payroll tax (0.60% employee/0.40% employer) that begins 1/1/2023, the program will begin covering claims on 9/3/2023. All employers with 25 or more employees, including part time employees, must participate unless they offer an “equivalent” leave plan approved by the Employment Department, which will begin accepting equivalency applications from employers in October 2022. Several insurance carriers plan to offer leave products (voluntary plans) that would allow employers to waive the state program. Small employers (24 or fewer employees) may choose to opt into the program. The rules of the program are still being established, and more details will be provided in the coming months. Your DDI team is available to help you navigate the new program and review your options. For more details about the program, please read below and/or reach out to you DDI Account Manager.

The PFMLI program provides employees with compensated time off from work to care for and bond with a child during the first year of the child’s birth or arrival through adoption or foster care; to provide care for a family member who has a serious health condition; to recover from an employee’s own serious health condition; and to take leave related to domestic violence, stalking, sexual assault, or harassment (safe leave). 

Below is the implementation timeline. Click HERE for an FAQ. To waive the state plan, which begins contributions 1/1/2023 and benefits 9/3/2023, an employer must submit a request for approval of an equivalent private plan by November 30^th. The Employment Department will begin review in October 2022.

Below is an overview of how the program works…

Plan Options

Employers can use the state PFML program or get state approval for a voluntary plan. Voluntary plans must provide benefits to the employees that are at least equal to the benefits of the state’s PFML program.

DDI can help you with providing a voluntary plan from an experienced private insurance carrier that will meet or exceed the state requirements

Funding

The employer and employee pay a total contribution amounting to 1% of the employee’s earnings, up to a maximum of $1,329 per year.

Covered Employees

Employees are eligible for Oregon’s PFML if they’ve earned $1,000 or more with their employer in the previous four calendar quarters before taking leave.

Covered Family Members

Oregon’s PFML law uses one of the broadest definitions of “family member,” which includes non-related individuals who have a close relationship with the covered employee.
Covered employees may take family leave to care for a:

• Spouse or domestic partner
• Child or the child’s spouse or domestic partner
• Parent or parent’s spouse or domestic partner
• Sibling or stepsibling or the sibling’s or stepsibling’s spouse or domestic partner
• A grandparent or the grandparent’s spouse or domestic partner
• A grandchild or the grandchild’s spouse or domestic partner
• Anyone related by blood or affinity whose close association is the equivalent of a family relationship

Covered Leaves and Durations

Employees have the option of taking an added four weeks of unpaid leave.

Weekly Benefit Amount

Employees can receive 100% of their wages up to 65% of the state’s average weekly wage (SAWW) for up to 12 weeks. The state’s average weekly wage is recalculated annually.

• State Average Weekly Wage: $1,147.05 for 2021-2022 (exact period TBD)
• Minimum Benefit: 5% of the SAWW, which equals $57.35
• Maximum Benefit: 120% of the SAWW, which equals $1,376.46

Waiting Period

The state has not adopted a waiting period. HB 2005 states that if a claim is approved, they shall make a reasonable effort to make the first benefit payment within two weeks of receiving the claim.

Intermittent Leaves

The state has not yet adopted rules for intermittent leaves.

Additional Information Employers Need to Know

• Almost all employers — except federal employers — who have at least one employee working in Oregon are subject to the Oregon PFML law.
• The law runs concurrently with the federal Family and Medical Leave Act.
• Employers must report wages and send contributions quarterly.

Oregon PFML Notification Requirements

Employers must give employees written notice of their right to:

1. Take leave under PFML
2. Receive job protections and benefits continuation
3. Appeal claims decisions
4. File a civil claim for a PFML violation
5. Have their health information remain confidential

Employers must also provide written notice about:

1. Claim filing procedures
2. Employees’ notice obligations
3. Laws against retaliatory actions by the employer

More Information

Visit the Oregon Paid Family and Medical Leave Insurance page to learn more about Oregon’s PFML. Click HERE for an FAQ. 

For more information on creating a customized benefits package for your employees, contact DDI Benefits at 503.206.5654, or via email to dena@ddibenefits.com


Information provided in part by The Standard and is for informational purposes only and should not be relied upon for tax or specific legal advice. Further, this information may or may not reflect the most current legislative or regulatory PFML requirements.