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 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. Employers are required to display the program notice in the workplace on or before January 1, 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 Oregon Employment Department (OED) debuted “Frances Online,” a new system for employee contributions as of September 2022, which now supports both Unemployment Insurance and Paid Leave Oregon contributions for the first quarter of 2023. Click here to sign up for employer access.
- 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.
The department released the model notice for PLO. This notice must be displayed in the workplace (and provided via email or mail to Oregon employees who work remotely) no later than January 1, 2023. Thereafter, it must be provided to new hires and those assigned to work remotely in Oregon, who were not already informed of the law at the time of hire (such as employees who relocate from another state to work remotely in Oregon). Click here to view the model notice.
The Larkin Company will consider any law changes carefully, and update our internal resources and processes, as well as our employee leave information packets, if necessary. We will continue to monitor any updates regarding the laws and will keep our clients updated.
Further Company Considerations
Adjust your contributions in line with the updates, effective 2023. Additionally, keep an eye out for The Larkin Company updates regarding the PFMLI program. We also recommend signing up for the state newsletter, here.
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