Oregon Paid Family and Medical Leave

• Provides up to 12 weeks of paid family or medical leave per year to most employees who work in the state, with two additional weeks available for limitations related to pregnancy, childbirth, or a related medical condition (including lactation).
• Uses a broad definition of family member, which will include “any individual related by blood or affinity who close association with a covered individual is the equivalent of a family relationship.”
• Becomes the first PFML program to reach 100% income replacement for lower wage earners.
• Includes job protections for employees who have worked for their employer for at least 90 days.

• All employers with one or more employee working anywhere within the state of Oregon. Covered employers include:
  • Political subdivisions of the state or any county, city, district, authority, or public corporation.
  • Any type of organization, corporation, partnership, and limited liability company.
• Federal government, tribal government and self-employed business owners are excluded from coverage requirements.  However, tribal government and self-employed employers may opt into the program.

An employee who works for a covered employers becomes eligible for OR PFML benefits after they have earned at least $1,000 in wages, subject to premium contribution, during the year prior to claiming benefits.

Eligible employees can take paid leave for the following leave types/qualified reasons:

• Bonding after birth, adoption, or foster placement of a child
• Care for a family member with a serious health condition
• An employee’s own serious health condition
• Safe Leave for victims of domestic violence, sexual assault, harassment, or stalking  

Covered family member includes spouse, domestic partner, child, parent, grandparent, grandchild, sibling, or any individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship.

• Employee will be eligible for up to combined 12 weeks of paid family and medical leave for any qualified leave type, with up to an additional two weeks of leave available to employees for limitations related to pregnancy, childbirth, or a related medical condition, including but not limited to lactation. The total combined maximum weeks available will be 14 weeks within a benefit year.
• Leaves may be taken on a continuous or intermittent basis in full workday increments.
• The weekly benefit will vary based on an employee’s average weekly wages (AWW).  The weekly benefit will be calculated as:
  • Employees who earn less than or equal to 65% of the state average weekly wage (SAWW):
    •  100% of employee’s AWW
  • Employees who earn greater than 65% of the SAWW:
    • 65% of the SAWW, plus 50% employee’s AWW that is greater than 65% of the SAWW, up to the maximum weekly benefit.

• Maximum weekly benefit will be 120% of the SAWW.
• Minimum weekly benefit will be 5% of the SAWW.
• Job protection is included for employees who have been employed with their employer for at least 90 days.

OR PFML requires employers providing the mandated PFML coverage using the state program to begin payroll deductions starting January 1, 2023.

• State contribution rate is set by the Director of OR Employment Department.
• The total combined rate for employer and employee contributions for 2023 is set at 1.0% of employee’s wages, up to a taxable wage base of $132,900, which is subject to change annually. Rate is subject to change annually as well but cannot exceed 1.0% of employee’s wages.
• Shared Cost – 60% Employee Paid; 40% Employer Paid
• Under the state program, employers with fewer than 25 employees do not pay the employer share of the premium but must forward the employees’ premium share to the program. However, employers who elect to pay the employer contribution may be eligible to apply for grants from the state to assist with certain costs related to the program.

Employers can participate in the state-run program, or seek approval to offer a private plan option, either a self-insured or fully insured private PFML plan.

If an employer opts out of the program, the employer will need to adhere to the established guidelines and requirements set forth by the state to apply for approval to offer a private plan coverage.  The “equivalent plan” they choose to provide must:

• Be approved by the state of Oregon
• Meet or exceed the requirements of the state program
• Costs employees no more than the state plan

Oregon covered employers are required to provide written notice to all eligible employees of their duties and rights under the OR PFML program in addition to other required disclosures. The notice must be provided to an employee in the language the employer typically uses to communicate with the employee. The Director of Oregon’s Employment Department will provide a model notice for the employer’s use to meet this obligation.

• OR PFML Benefit Provisions
• OR PFML State Website

Guardian will be offering a fully insured private plan option for OR PFML coverage, effective September 3, 2023.  An employer is expected to be able to apply to the state for approval starting September 2022.

You can count on:

• Dedicated support to file a private plan exemption with the state.
• Assistance with adjusting Short Term Disability (STD) and Long Term Disability (LTD) plan designs to integrate with a PFML plan.
• A single point-of-contact for disability and/or paid leave claims inquiries.
• Experienced claims management by tenured professionals, including safe and effective return to work support.
• Updates on new regulations and ongoing guidance to keep you compliant.

The state of Oregon under the Employment Department is currently developing its PFML regulations, including specifics on how its program will be implemented.  We are actively collaborating with the state of Oregon, monitoring all developments as they become available. We help keep our customers and brokers informed every step of the way.