On August 9, 2019 Oregon Governor Kate Brown signed the Paid Family and Medical Leave Act which entitles eligible employees up to 12 weeks of paid leave. The timeline of contributions, notice requirements, and benefit application is below.
All employers are covered under this ordinance except for federal or tribal government.
In order to be eligible for Paid Family and Medical Leave benefits, an employee must have earned at least $1,000 in wages during the base year; or if an employee has not earned at least $1,000 in wages during the base year, an employee who has earned at least $1,000 in wages during the alternate base year.
An employee can use paid leave benefits for the purposes of family leave, medical leave, or safe leave. An employee may also qualify for an additional two weeks of benefits for limitations related to pregnancy, childbirth or a related medical condition, including lactation.
Funding for the FAMLI Program will be provided through a payroll tax, the rate to be determined by the Director of the Employment Department (not to exceed 1% of the employee’s wages). The law provides that:
Self-employed individuals and tribal government employers can opt into the program and make contributions at the same rate as other employers.
The new law requires employers to provide their workers with a maximum of 12 weeks of paid leave, with total paid and unpaid leave capped at 16 weeks (or up to 18 weeks for women who experience complications due to pregnancy or childbirth).
Benefits will be provided as follows:
An employer shall provide written notice to each employee of their rights and duties in accordance with rules adopted by the Director of the Employment Department.
Paylocity is monitoring this ordinance and will provide updates as the effective dates approach. Below is a link for the agency’s draft regulations.
Click here for more information.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.
Date Posted: August 20, 2019