Oregon Paid Family and Medical Leave Insurance (PFMLI)

The state of Oregon is currently in the process of implementing a Paid Family and Medical Leave Insurance (PFMLI), which will allow employees to take time away from work to bond with a new child born, adopted, or placed for foster care within a year of the birth or placement, take leave to care for a family member with a serious health condition or for the employee’s own serious health condition, or to take safe leave for an employee experiencing issues related to domestic violence, harassment, sexual assault, or stalking.  

Employees will be entitled to both job-protected leave and a weekly wage replacement benefit under PFMLI.  Leave will run concurrently with leave under the Oregon Family Leave Act (OFLA) and the Family and Medical Leave Act (FMLA).  Employees will be entitled to up to 12 weeks of job-protected paid leave to care for themselves or a family member with a serious health condition, with an additional two weeks for pregnancy and childbirth.  The weekly benefit will be based on the employee’s average weekly wage and can be up to 100 percent of the employee’s weekly wage.

PFMLI will be funded by a payroll contribution of no more than one percent, shared by employers and employees.  Employees will contribute 60 percent and employers will contribute 40 percent, although employers can elect to fund the entire contribution for their employees.  The employees’ contribution will be collected through wage withholding.

All employees who earned at least $1000 in the prior year are eligible for PFMLI.  All employers must withhold employee contributions for payroll, although employers with fewer than 25 employees are not required to make the 40 percent contribution.  Employers with fewer than 25 employees who voluntarily make the 40 percent contribution are eligible for assistance grants.  

Although the State of Oregon Employment Department is still in the process of rolling out the program the current projected date for payroll contributions to begin is January 1, 2023.  If the implementation of PFMLI remains on schedule, employees will be eligible to begin receiving benefits on September 3, 2023. 

The expert employment law attorneys at myHRcounsel are available to answer your questions about paid family and medical leave in all states in which it is required by law and provide all the assistance you need to remain compliant.