News & Resources

Title

Oregon Delays Start of Paid Family and Medical Leave Program

BY: Lia Coniglio, Esq. | 08/20/21

The Oregon Employment Department (ED) previously requested legislation to delay the implementation of the paid family and medical leave program (PFML) that was originally enacted in 2019. The legislation was signed by the governor and became law. Contributions will now begin January 1, 2023 [H.B. 3398, L. 2021].

Regulations about the PFML will be issued by September 1, 2022; employers will begin withholding and remitting PFML contributions on January 1, 2023; and eligible employees will be able to receive PFML benefits beginning in September 2023.

Program Basics

The PFML program will provide up to 12 weeks of paid leave from work for an employee to recover from a serious illness, care for a family member who is ill, or bond with a newborn or newly adopted child.

Employee and employer contributions will be remitted quarterly. The ED will determine the percentage, which cannot exceed 1% of employee wages, up to a maximum of $132,900 (this is the amount of the 2019 social security wage base; this may be changed in future regulations). The ED will adjust the rate based on plan funding requirements and will annually adjust the wage base for inflation. Employers will be responsible for 60% of the total rate (0.60%) and employees will be responsible for 40% of the total rate (0.40%).

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Lia Coniglio, Esq., is Managing Editor of PayState Update and Manager of State Payroll Information Resources for the APA.