Oregon’s Paid Family and Medical Leave Insurance (PFMLI) will be rolling out in 2023. 

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) – Paid Leave Oregon

The new program is slated to begin employer and employee contributions in January 1, 2023, and benefits will begin being paid out by the state on September 3, 2023. 

The program facts are as follows:

  • The Oregon Paid Family and Medical Leave Insurance (PFMLI) will be referred to as Paid Leave Oregon (PLO).
  • The total contribution rate for PLO is 1% (capped at the social security taxable wage limit). Employees will be responsible for 60% of the contribution and employers the remaining 40% (employers may also pay the employee portion fully if they wish). 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 for pregnancy-related disability). Employees are eligible for benefits if they have earnt $1,000 or more in wages with any OR employer(s) during the year prior to the leave. Their leave is job protected, if they have worked for their current employer for 90 days prior to their 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 September 3, 2023. The state is estimating that the minimum weekly benefit will be approximately $57, and the maximum weekly benefit will be approximately $1,469.78.

A new leave reason was made 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 then extended through the end of 2021 and became permanent effective January 1, 2022. Note: COVID-19 is no longer considered a public health emergency in Oregon, so employees are not presently able to take time off (for the aforementioned leave reasons) due to COVID-19. They may, however, be able to take time off for these reasons under OFLA, if a future public health emergency is declared by the state.

Handbook/Policy Updates

Updates to your company handbook may need to be made if you include the Oregon Family Leave Act (OFLA) information within it.

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 

Keep an eye out for updates from The Larkin Company regarding the PFMLI program. We would also recommend staying informed by signing up for the PFMLI newsletter.

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The Larkin Company has taken reasonable steps to ensure the accuracy of the information on this page, however we make no representation or warranty of any kind as to its accuracy or completeness. These resources should not be construed or substituted for legal advice. Accordingly, before taking any actions based upon such information provided herein, we encourage you to seek competent legal advice from a licensed attorney or appropriate professionals.