Oregon: Paid Family Leave Coming in 2023

HB 2005 will implement a paid family leave (PFL) program in Oregon, with employees able to use the benefits beginning on January 1, 2023. The bill applies to all employers with at least one employee in Oregon. Employees will receive supplemental wage replacement benefits paid by the state for leave taken from work to care for a family member with a serious health condition, for their own serious health condition, to care for and bond with a child during the first year of birth or following foster placement or adoption, or for safe leave related to domestic violence, harassment, sexual assault, or stalking.

Eligible employees may qualify for up to 12 weeks of benefits within a 12 month period. Employees may qualify for an additional two weeks of benefits for limitations related to pregnancy, childbirth, or a related medical condition, including lactation.

PFL runs concurrently with any leave taken under the federal and state family and medical leave acts. PFL benefits are in addition to any paid sick leave, vacation, or other paid leave earned by an employee, not to exceed a combined total of 100% of their average weekly wage.

Starting January 1, 2022, employers with 25 or more employees must begin contributing 60% of the applicable rate through a payroll tax, and employers must contribute the remaining 40% of the rate, which cannot exceed 1% of employee wages, up to a maximum of $132,900 in wages.

PFL provides job protections and prohibits discrimination and retaliation against employees using PFL. Employees must provide at least 30 days’ advance notice where leave is foreseeable; verbal notice is required within 24 hours and written notice is required within three days. Employers must also provide employees with notice of their rights under the law. Employers should begin to plan for how this will impact their organizations.

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