Oregon’s Paid Family and Medical Leave Insurance (PFMLI), which was scheduled to begin contributions on January 1, 2022, has been delayed due to reallocation of resources to address the COVID-19 pandemic. 

Oregon Paid Family and Medical Leave Insurance (PFMLI) and Oregon Family Leave Act (OFLA)

What is the Update?

Oregon Paid Family and Medical Leave Insurance (PFMLI) 

The new program is now slated to begin employer and employee contributions in January 1, 2023, and benefits will begin being paid out by the state on September 1, 2023.  

Other than the revised timeline, no other changes or updates have been made to the program at this time. The program facts are as follows:

  • Contributions expected to be no more than 1% of employees’ annual wages (capped at the social security taxable wage limit), with employers covering 40% of the contribution (employers with less than 25 employees are exempt from paying the employer share).
  • Amount of Leave: 12 weeks of paid leave (up to 2 additional weeks if pregnancy-related disability, and an additional 4 weeks of unpaid leave).
  • The maximum weekly benefit will be based on the employee’s average weekly wage and is currently set to be capped at 120% of the state’s average weekly wage when benefits begin in September 2023.
  • It is expected that this law will provide job protection for those who were employed by the employer for at least 90 days before taking leave.

A new leave reason will be available for employees under the Oregon Family Leave Act (OFLA) as of January 1, 2022.  OFLA generally provides eligible employees with up to 12 weeks of leave within a one-year period to use for specified qualifying purposes. In September 2020, OFLA extended the rules to allow employees to use leave under OFLA to care for the employee’s child whose school or place of care has been closed because of a statewide public health emergency. While initially set to expire in March 2021, the change was extended through the end of 2021 and will become permanent effective January 1, 2022. 

Handbook/Policy Updates

Updates to your company handbook may need to be made if you include Oregon state-specific leave law information.

Notice Requirements

Each employee should get a written notice of the new PFMLI program. The state has not yet created a notice for this purpose.

Larkin Action

The Larkin Company will be keeping our clients updated on the finer details of the law and any obligations, including a reminder on when to take contributions.

Further Company Considerations 


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The Larkin Company is providing this information for general informational purposes and as a courtesy only. All information is provided in good faith and based on readily available information from various sources. We have taken reasonable steps to ensure that the information provided and any accompanying resources are accurate and provide valuable information. However we make no representation or warranty of any kind, expressed or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information provided in the document. 

The information on this website does not contain, nor should it be construed or substituted for legal advice.  Accordingly, before taking any actions based upon such information provided herein, we encourage you to consult with the appropriate professionals. The Larkin Company does not provide legal advice of any kind. The use or reliance of any information contained in this is solely at your own risk. Neither the Larkin Company nor any of its agents or employees shall be held liable or responsible for any inaccuracy, errors or omissions contained herein or for any damage you may suffer as a result of failing to seek competent legal advice from a licensed attorney. 

Updated: 12/10/21