Oregon Paid Family and Medical Leave
Oregon joins a growing list of states to adopt a Paid Family and Medical Leave (PFML) Program. State premium collection begins January 1, 2023, and benefit payouts begin September 3, 2023. Oregon’s program covers a variety of reasons for paid leave, including recovery time for an employee’s own medical condition and caring for a family member.
The new OR PFML program:
- Grants up to 12 weeks of paid family or medical leave per year to most employees who work in the state, with two additional weeks for pregnancy complications.
- Uses a broad definition of family member, which will include, children, parents, spouse/domestic partners, parents of spouse/domestic partners, siblings, grandparents, grandchildren, and “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 certain employees (the benefit calculation will vary based on salary)
Eligible employees can take leave for the following reasons:
- Bonding after birth, adoption or foster placement of a child
- Care for a sick family member
- An employee’s own serious health condition
- Family violence issues
OR PFML requires employers using the state program to begin payroll deductions starting January 1, 2022. Benefits won’t begin until January 1, 2023.
Benefits will be paid from a state fund generated from employee payroll deductions and employer contributions, unless an employer seeks approval from the state to use a private PFML plan.
If an employer opts out of the state program, the private coverage 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
Employers are required to provide written notice to all eligible employees of their duties and rights under the OR PFML program. The notice must be provided to an employee in the language the employer typically uses to communicate with the employee. The notice will be provided by the Director of OR’s Employment Department when it is available.
Guardian is currently assessing our ability to have product offerings for OR PFML. We are actively collaborating with the state of Oregon, and monitoring all developments as they become available. We will keep our customers and brokers informed every step of the way.
Effective employee leave management is key to ensuring your business remains compliant with state laws, helping you avoid costly fines.
Guardian has provided employers with statutory disability plans for more than a decade, taking a consultative approach to bring resources together for successful PFML plan implementation and management, no matter the level of complexity. Our management of PFML plans help ensure that any Human Resources team can meet the challenge of efficiently managing employee leaves while easing administrative burden and enhancing compliance. Our plans are fully insured, state-approved, and backed by digital capabilities designed to help make administration easier.
Further, our Guardian absence management solutions can help reduce the administrative burden and enhance compliance with the integrated management of STD and LTD benefits, state and federal family medical leaves, and company leaves. Available to companies with 50 or more employees, employers can choose from a variety of plans and service options, including ADA support.
To learn more about Guardian leave management services or reach out to your Guardian group sales consultant or broker.
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