THE MANDATORY PAID LEAVE OREGON 9/3/23 EFFECTIVE DATE IS COMING UP
Beginning January 1, 2023, employers with workers based in Oregon will be assessed a payroll tax so the state can provide a family and medical leave benefit to all eligible workers. For most Oregon employers, participation in Paid Leave Oregon is mandatory. The Partners Group is strategically positioned to help you make an informed decision.
Employers with less than 25 employees are not required to pay the employer portion of the Paid Leave Oregon premium; see here for additional information on how Paid Leave Oregon impacts small employers.
For additional resources, visit the official State of Oregon “Paid Leave Oregon” website.
12/8 PAID LEAVE OREGON Q&A
Sign up to gain access to the recorded webinar and slide deck, as well as other Paid Leave Oregon resources.
Important Dates
- Contributions begin 1/1/23
- Reporting requirements are the last day of the month following the end of each quarter
- Benefits begin 9/3/23
Covered Employers
- OR public & private employees
- Self-employed & tribal government employees can opt in
Covered Employees
- Earned at least $1,000 in the qualifying period
Benefit Duration
- 12 weeks; additional 2 weeks for pregnancy or childbirth complications
- Total Paid Leave Oregon & OFLA capped at 18 weeks
Who Pays?
- Paid Leave Oregon expenses can be shared between employers & employees, with exceptions
Benefits
- Employees may use sick time, vacation, or other earned paid leave
- Wages can be replaced up to 100% of their AWW on a sliding scale
KNOW YOUR OPTIONS: REQUEST A CUSTOM PAID LEAVE OREGON ANALYSIS
IMPORTANT PAID LEAVE OREGON DECISION
Employers must decide whether to:
1) pay the payroll tax and allow the State of Oregon to administer the Paid Leave Oregon program, or
2) offer employees an equivalent, state-approved plan.
The Partners Group can run a detailed analysis of your organization to help you understand Paid Leave Oregon’s financial impact and determine your best plan.
EMPLOYERS COVERED BY PAID LEAVE OREGON
All public and private employers with at least one eligible employee (EE) in Oregon are covered. Those employers who are self-employed, or tribal government employers are not covered, but can opt in to Paid Leave Oregon.
EMPLOYEES COVERED BY PAID LEAVE OREGON
Employees are covered by Paid Leave Oregon if they contributed to the fund and earned at least $1000 in wages during the qualifying period.
PAID LEAVE OREGON BENEFIT DURATION
Employees receive 12 weeks of paid benefits under Paid Leave Oregon. Those who are pregnant or experienced complications during childbirth receive an additional two weeks. An employee’s total paid (Paid Leave Oregon) and unpaid leave (OFLA) is capped at 18 weeks.
WHO PAYS FOR PAID LEAVE OREGON?
Expenses can be shared between employers and employees, with some exceptions.
- Employees will be taxed at 1% of wages, capped at the annual Social Security maximum; contributions will not exceed 60% of the total rate.
- Employers with 25 or more employees are responsible for at least 40% of the final rate and can elect to pay employee contributions.
- Expenses can be shared between employers and employees, with some exceptions.
PAID LEAVE OREGON BENEFITS
In addition to receiving family and medical leave insurance benefits, the Paid Leave Oregon program allows employees to use paid sick, vacation, and any other earned paid leave to replace wages up to 100% of their average weekly wage (AWW) on a sliding scale:
- Those with an AWW of up to 65% of Oregon’s AWW will receive a 100% benefit.
- Those with an AWW that exceeds 65% of Oregon’s AWW will receive 100% of their wages up to 65% of the state’s AWW, plus 50% of wages that are over this threshold.
- The weekly maximum Paid Leave Oregon benefit is capped at 100% of an employee’s AWW.
OUR PAID LEAVE OREGON EXPERTS MAKE THE COMPLICATED EASY
Let us compile a customized Paid Leave Oregon analysis to see your options – state plan or state-approved private plan – so you can make an informed decision.
Get the latest Paid Leave Oregon updates as they’re released:
The information on this page is valid as of January 1, 2023. The state is actively engaged in rulemaking. Therefore, this is our best effort at understanding Paid Leave Oregon based on the regulations and rules that have been published. Our interpretation is subject to change as more information becomes available.
The information contained herein does not constitute legal advice or a legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult a lawyer concerning your own situation and any specific legal questions you may have.
Advisory services offered through TPG Financial Advisors, LLC, an SEC-Registered Investment Advisor and a wholly owned subsidiary of The Partners Group, LTD.