Key Takeaways
• New administrative rules effective January 1, 2025 allow accruing paid leave to supplement wage benefits.
• Senate Bill 1515 bans simultaneous use of Paid Leave Oregon and OFLA for the same event after July 1, 2024.
• Contribution rates for 2025 set at 1%, with employees paying 60%, large employers 40%, and job protections enforced.
Paid Leave Oregon has introduced several important updates that affect both employers and employees across the state. These changes, including new administrative rules and legislative adjustments, aim to clarify how the employee benefit works, what employers must do, and how workers can make the most of the program. Below, you’ll find a detailed summary of what’s changed, who is affected, when the changes take effect, what actions are required, and what these updates mean for pending and future applications.
Summary of What Changed
Paid Leave Oregon is a program that gives eligible employees paid time off for family, medical, or safe leave reasons. The most recent changes include:
- New administrative rules effective January 1, 2025, which clarify how employees can use their own paid time off (like sick leave or vacation) to “true up” their pay while on leave.
- Senate Bill 1515, effective July 1, 2024, which prevents employees from taking both Paid Leave Oregon and Oregon Family Leave Act (OFLA) leave at the same time for the same reason.
- Updated contribution rates and clearer rules about who pays what portion of the program’s costs.
- Clarified eligibility rules for employees, self-employed individuals, and independent contractors.
Let’s break down each of these changes and what they mean for you.
Who Is Affected by the Changes
These updates impact:
- All employers in Oregon, especially those with 25 or more employees (large employers).
- Employees working in Oregon who may need to take paid family, medical, or safe leave.
- Self-employed individuals and independent contractors who choose to participate in Paid Leave Oregon.
- Human resources professionals and payroll administrators who handle employee benefits and compliance.
Effective Dates
- Senate Bill 1515: Takes effect July 1, 2024.
- New administrative rules: Take effect January 1, 2025.
- Contribution rates and job protection rules: Continue into 2025 and beyond, with annual updates as needed.
Key Changes Explained
1. New Administrative Rules: Using Accrued Leave to “True Up” Pay
Starting January 1, 2025, employees who take Paid Leave Oregon can use their own paid sick leave or vacation time to make up the difference between the wage replacement benefit and their normal pay. This process is called “truing up.”
- Example: If Paid Leave Oregon pays 80% of your usual wages during leave, you can use your accrued sick leave or vacation to cover the remaining 20%, so you receive your full pay.
- Why this matters: Before this rule, employees could only get the wage replacement amount from Paid Leave Oregon, which might be less than their full paycheck. Now, employees can avoid a drop in income during their leave by using their own paid time off.
2. Senate Bill 1515: No Double-Dipping on Leave
Senate Bill 1515, effective July 1, 2024, stops employees from taking both Paid Leave Oregon and OFLA leave at the same time for the same event.
- What this means: If you take Paid Leave Oregon for a new baby, you can’t also take OFLA leave for the same baby at the same time. You must choose one program for each qualifying event.
- Why this matters: This change removes confusion and prevents employees from stacking leave from both programs for the same reason, making it easier for employers to track leave and for employees to plan.
3. Eligibility and Coverage
To qualify for Paid Leave Oregon:
- Employees must have worked in Oregon and earned at least $1,000 in the year before applying for leave.
- Self-employed individuals and independent contractors can choose to join the program by paying their own contributions.
- Job protection applies if the employee has worked for the same employer for more than 90 consecutive days and the job still exists when they return.
4. Leave Duration and Types
- Up to 14 weeks of paid leave are available each year for qualifying reasons, such as:
- Bonding with a new child (birth, adoption, or foster care)
- Caring for yourself or a family member with a serious health condition
- Dealing with issues related to domestic violence, sexual assault, or stalking
5. Contribution Rates and Who Pays
For 2025, the total contribution rate is 1% of gross wages:
- Employees pay 60% of this amount through payroll deductions.
- Large employers (25 or more employees) pay 40% of the contribution.
- Small employers (fewer than 25 employees) do not have to pay the employer portion but must still withhold and send in the employee portion.
6. Job Protection Rules
Employers must protect the jobs of employees who have worked for them for more than 90 consecutive days. When the employee returns from leave, they must be given their same job or an equivalent one, as long as the job still exists.
Required Actions for Employers
Employers must take several steps to comply with the new rules and ensure employees get the benefits they are entitled to:
1. Determine Employer Size
- Count your average number of employees to see if you are a “large employer” (25 or more) or a “small employer” (fewer than 25).
- This affects whether you must pay the employer portion of the contribution.
2. Withhold and Report Contributions
- Large employers: Withhold 60% of the contribution from employee paychecks and pay the remaining 40% themselves.
- Small employers: Withhold 60% from employees but do not pay the employer portion.
- Report and send these contributions to the state as required.
3. Protect Employee Jobs
- Make sure employees who have worked for you for more than 90 days are guaranteed their job (or a similar one) when they return from leave.
- Do not retaliate or discriminate against employees who use Paid Leave Oregon.
4. Inform Employees
- Clearly explain Paid Leave Oregon benefits, how to apply, and how the program works.
- Update employee handbooks and policies to reflect the new rules.
- Post required notices in the workplace.
5. Update Payroll and HR Systems
- Adjust payroll systems to handle the correct withholding and employer contributions.
- Track leave accurately to ensure compliance with both Paid Leave Oregon and OFLA.
Implications for Pending and Future Applications
If you are an employee planning to apply for Paid Leave Oregon, or an employer handling current or upcoming leave requests, here’s what you need to know:
- Pending applications before July 1, 2024: Employees may still be able to use both Paid Leave Oregon and OFLA for the same event if the leave started before this date. After July 1, 2024, this is no longer allowed.
- Applications after January 1, 2025: Employees can use their own paid time off to “true up” their pay during leave.
- Employers: Review all pending and future leave requests to ensure compliance with the new rules. Communicate any changes to employees as soon as possible.
Practical Examples
- Scenario 1: New Parent
Maria works for a large employer and just had a baby. She applies for Paid Leave Oregon and is approved for 12 weeks of paid leave. Paid Leave Oregon covers 80% of her usual wages. Starting January 1, 2025, Maria can use her accrued vacation time to cover the remaining 20%, so she receives her full pay during leave. -
Scenario 2: Serious Health Condition
John needs to take time off to care for his spouse, who is seriously ill. He has worked for his employer for over a year. John applies for Paid Leave Oregon and is approved. His employer must protect his job while he is on leave, and John can use his sick leave to make up any difference in pay. -
Scenario 3: Small Employer
A small business with 10 employees must withhold the employee portion of the contribution but does not have to pay the employer portion. The owner updates payroll and informs employees about the program.
Expert Perspectives
According to analysis by VisaVerge.com, these changes make Paid Leave Oregon easier to use and understand for both employers and employees. The new administrative rules help workers avoid a drop in income during leave, while Senate Bill 1515 removes confusion about overlapping leave programs. Experts recommend that employers review their policies and train HR staff to handle the new requirements.
Common Questions and Answers
Q: Can I use Paid Leave Oregon and OFLA at the same time for the same reason?
A: No. Starting July 1, 2024, you cannot use both programs for the same qualifying event at the same time.
Q: How do I “true up” my pay during leave?
A: Beginning January 1, 2025, you can use your accrued sick leave or vacation time to make up the difference between the Paid Leave Oregon benefit and your normal pay.
Q: What if I work for a small employer?
A: Your employer must withhold your portion of the contribution, but they do not have to pay the employer portion. You are still eligible for Paid Leave Oregon if you meet the other requirements.
Q: Are self-employed people covered?
A: Self-employed individuals and independent contractors can choose to participate by paying their own contributions.
Q: What happens if my job is eliminated while I’m on leave?
A: If your job no longer exists when you return, your employer is not required to reinstate you. However, if the job still exists, you must be given your same or a similar job.
Next Steps for Employers and Employees
For Employers:
- Review your employee handbook and update policies to reflect the new rules.
- Train HR and payroll staff on the new administrative rules and Senate Bill 1515.
- Communicate changes to employees, especially about using accrued leave and the new limits on overlapping leave.
- Ensure payroll systems are set up to handle the correct contribution rates and reporting.
For Employees:
- Check your eligibility for Paid Leave Oregon.
- Ask your employer about your options for using accrued sick leave or vacation to “true up” your pay during leave.
- Plan your leave in advance and submit applications as early as possible.
- Stay informed about your rights and responsibilities under both Paid Leave Oregon and OFLA.
Staying Informed and Compliant
Both employers and employees should regularly check for updates to Paid Leave Oregon’s rules and procedures. The program may continue to change as new laws are passed and administrative rules are updated. Staying up to date helps everyone avoid mistakes and ensures that employees get the benefits they deserve.
Where to Find More Information
For the most current information, visit the official Paid Leave Oregon website. This site provides detailed guides, forms, and contact information for the Oregon Employment Department. You can also call 833-854-0166 for help with specific questions.
Conclusion
The recent updates to Paid Leave Oregon, including new administrative rules and changes from Senate Bill 1515, make the program clearer and more effective for everyone involved. Employers must pay close attention to their responsibilities, update their systems, and communicate with employees. Workers benefit from better wage replacement and clearer rules about their rights. By following the steps outlined above and staying informed, both employers and employees can make the most of this important employee benefit.
For more detailed analysis and ongoing updates, VisaVerge.com reports that these changes are part of a broader effort to improve paid leave programs and support working families in Oregon. As the program continues to evolve, staying informed and prepared is the best way to ensure compliance and maximize the benefits of Paid Leave Oregon.
Learn Today
Paid Leave Oregon → A state program providing eligible workers with paid time off for family, medical, or safe leave reasons.
Senate Bill 1515 → Legislation preventing employees from using Paid Leave Oregon and OFLA leave simultaneously for the same event.
True Up → The process that allows employees to use accrued paid leave to top off their wage replacement benefit.
Contribution Rates → The percentages of gross wages paid by employees and employers to fund Paid Leave Oregon benefits.
Job Protection → Rules ensuring employees returning from paid leave get their same or an equivalent job if it still exists.
This Article in a Nutshell
Paid Leave Oregon updates clarify rules and rates, improving benefits for employees and responsibilities for employers. New laws prevent double leave use and allow paid time off to supplement wage replacement starting 2025. These changes ensure fair pay, clear compliance, and protect jobs across Oregon’s workforce.
— By VisaVerge.com
