Beginning January 1, 2023, funding for Paid Leave Oregon will go into effect. Paid Leave Oregon is a new program, run by the State of Oregon, which operates as a wage replacement program, intended to compensate employees who take time off work for one of the following reasons:
- To care for a child
- To bond with a child after a child’s birth or adoption
- To heal or recover from a serious illness
- To help a family member of the employee that has faced domestic violence, sexual assault, or harassment.
As an employer of any size, most employees will soon become eligible for paid leave benefits come September 3, 2023.
Benefits include:
- Up to 12 weeks of paid leave in one year (an additional 2 weeks if the eligible employee is pregnant, has given birth, or has health issues related to childbirth)
- Paid leave can be one week or a single day at a time
- Eligible employees are paid weekly while on leave, the amount determined and paid by Paid Leave Oregon*
- *Paid Leave Oregon receives and manages all claims, decides who is eligible, and how much is paid
- While an employee is on approved leave, pay is only received from Paid Leave Oregon and not the employer
- Job protection – if the eligible employee has worked at least 90 days, their job and existing role are both protected by law
Eligible employees include:
- Employees who made $1,000 or more the year before applying for Paid Leave and are experiencing an event that qualifies them for paid leave.
- The employee works a full-time, part-time, or seasonal job.
- Those who are self-employed, independent contractors, or Tribal governments can choose to elect into the program but do not have to.
Important Dates:
All employees and those employers with 25 or more employees will begin paying into the new program starting January 1, 2023, however, employees cannot start receiving benefits until September 3rd, 2023.
What this means for you as an employer:
If you are an employer of less than 25 employees, then you, as the employer, do not need to contribute to Paid Leave Oregon. However, your employees will still be required to participate in the program. Thus, you will still need to submit your employees’ portions to the State, just like most other payroll taxes. Although you are not required to make employer payments, you may choose to. If you choose to make employer payments, visit PaidLeave.Oregon.gov for information on how you can apply for an assistance grant that will help you cover these costs.
If you are an employer of more than 25 employees, you will be required to participate in the program. Employers and employees share the costs, which means you will pay 40% of the contribution and your employees will pay the remaining 60%. The contribution rate is subject to change, but for 2023, the rate is 1% of gross wages. Therefore, the employee will pay .6% of their 1% gross wage contribution into the program and you will pay the remaining .4%.
If you are self-employed, you do not automatically pay into the program and are therefore not automatically covered by the program. However, you may choose to do so. For information on how to enroll, visit PaidLeave.Oregon.gov.
Steps You Should Take as an Employer:
As an employer, no matter your employee count, the program requires that you post a notice to your employees, informing them about Paid Leave Oregon. You can find a model notice poster at PaidLeave.Oregon.gov. Alternatively, you can provide this notice through email or another written form of communication but make sure to include all the information required, which may be found at PaidLeave.Oregon.Gov.
If you are an employer of more than 25 employees, prepare to make the 40% contributions, starting January 1, 2023 or visit PaidLeave.Oregon.Gov for information on an “Equivalent Plan.” Lastly, as an employer of any size, prepare to collect employee contributions and stay informed of any other compliance requirements that may be added to the program.