Common questions about Paid Leave

Paid Leave Oregon is a new program that allows employees in Oregon to take paid time off for some of life’s most important moments.

Employees can take time off for three different kinds of life events:

Family leave:

• To care for a family member with a serious illness or injury
• Birth of a child
• Bonding with a child
  • In the first year after birth
  • After adoption
  • When they’re placed in your home through foster care

Most employees in Oregon are eligible for Paid Leave Oregon.

• If you’re an employee who made at least $1,000 the year before applying for paid leave, you may be eligible. 
• Whether you work full-time, part-time, or for more than one employer, it counts.
• If you are self-employed or an independent contractor, you are not automatically covered, but can choose coverage.
• Employees of tribal governments are also not automatically covered. Tribal governments that want to provide Paid Leave benefits to their employees can choose coverage for some or all their businesses.
• Federal government employees are not eligible.

• Employers with 25 or more employees are required to participate and pay into the program.
• Small employers with less than 25 employees are not required to pay contributions, but must still collect and submit employee contributions and provide job protections.
• Self-employed people can choose coverage. If they choose coverage, they will be responsible for paying contributions.
• Tribal governments can choose if they want to provide Paid Leave benefits to their employees for some or all of their businesses. If they choose to, they will be responsible for paying contributions.

Paid Leave is a program we all pay into. Here’s how it works for employees:

• Employees pay 60% of the contribution rate. The Oregon Employment Department decides the amount before the beginning of each year, and will not be more than 1% of the employee’s gross wages.
• For example, if an employee’s paycheck totals $1,000 dollars, they would pay $6 as their portion of the contribution for that paycheck. 
• The contribution rate for 2023 is 1%.

• Employers with 25 or more employees pay 40% of the contribution rate. 
• For example, if a business has more than 25 employees and pays $1 million in payroll, it would pay $10,000 into Paid Leave Oregon each year. Employers will pay 40% ($4,000) of this amount and are responsible for collecting and submitting their employees’ contributions.
• Employers can also choose to pay the employee portion, in full or in part, as a benefit for their employees. 
• Small employers, those with fewer than 25 employees, are not required to contribute. But, you still need to collect and submit employee contributions and protect their job.
• Assistance grants are available for small employers.

Employer and employee contributions begin Jan. 1, 2023, and employees can apply for Paid Leave benefits starting Sept. 3, 2023.

Businesses, workers, and others have been talking about bringing paid leave to Oregon since at least 2016. The Oregon State Legislature passed it into law in 2019 so more people in Oregon could have the time and support they need to care for themselves and their loved ones when life's important moments happen. We all go through events in life where we need time to care for ourselves, or those we love.

If you have 25 or more employees, you are required to participate, pay into the program, and collect and submit your employees’ contributions. You are also required to protect the jobs of employees who qualify for Paid Leave Oregon and take leave.

If you have fewer than 25 employees, you are not required to pay the employer portion of contributions, but you still need to collect and submit employees’ contributions and protect their jobs.

It would depend on how the gig workers are classified.

• If your gig workers are employees, then you are an employer. If you have more than 25 employees, you will need to pay your part of the contribution. All employers, regardless of size, must protect the employee’s jobs when they take leave.
• If your gig workers are classified as independent contractors, they are considered self-employed by the program and are not automatically covered. They can choose to participate if they want, but employers are not responsible for paying contributions for them or protecting their jobs.

Most employees working in Oregon pay into the program and are covered, no matter the size of the company they work for. If the business you work for has fewer than 25 employees, your employer is not required to pay into the program. Your employer will withhold the employee contribution from your paychecks and you may qualify for benefits.

Nearly all employers, regardless of size, are required to withhold and pay contributions on behalf of their employees and to provide qualified employees with job-protected leave. If you choose to contribute to Paid Leave as an employer, you can apply for an assistance grant. You are required to let them take leave if they qualify and to protect their job while they are gone. If you need help finding another worker, you can visit the WorkSource Oregon website, which helps connect employers and workers in Oregon.

It can be challenging for many small employers, especially those in rural communities to find other workers. Our WorkSource centers may be able to help you find another worker when an employee takes paid leave. To learn more about some of the programs and services, visit the WorkSource Oregon website.

If an employer doesn’t pay contributions when they are due, they may be responsible for paying penalties and interest.

If you are self-employed or an independent contractor, you’re not automatically covered by Paid Leave Oregon. This means you are not required to pay into the program and you do not get the benefits. However, you can participate by choosing coverage.  If you choose coverage, you will pay into the program the same way as employees — 60% of the contribution rate. Self-employed individuals can choose coverage beginning Jan. 1, 2023, and can apply for leave beginning Sept. 3, 2023.

It depends on your business and how you pay yourself. 

• If you pay yourself like an employee, Paid Leave Oregon considers you an employee and you would pay into the program like all other employees.
• If you are the only employee of your business, you would be considered a small employer because you have fewer than 25 employees. This means you would not need to pay the employer portion. The contribution rate has been set for 2023 at 1%. Employees pay 60% of this. As the only employee, you would pay the employee contribution.
• If you pay yourself as an independent contractor or as someone who is self-employed, then you are not automatically covered by Paid Leave Oregon. This means you are not required to pay into the program and you do not get the benefits. But, you have the option to choose coverage. If you choose coverage, you will contribute the same as an employee contribution. You can choose coverage beginning Jan. 1, 2023, and can apply for leave beginning Sept. 3, 2023.

Most employees in Oregon who made at least $1,000 in the year before may be eligible for benefits. Beginning on Sept. 3, 2023, eligible employees will be able to take leave and apply for benefits. Employees will apply for paid leave and file claims with the Paid Leave Oregon program.  Paid Leave Oregon—not their employer—will pay them their benefits (except if the employer has an equivalent plan). Employees will have different options for being paid. We will update the Paid Leave Oregon website once we have more information.

We calculate benefits based on the wages and income an employee earned in the prior year, so every employee’s benefit amount will be different. The maximum amount an employee will be paid is 120% of the state average weekly wage — the average amount employees throughout the state earn. The state average weekly wage in Oregon for 2023 is $1,224.82. Based on that, the minimum weekly benefit is $61.24 and the maximum weekly benefit is $1,469.78. The Oregon Employment Department updates the average weekly wage each July.

Paid Leave Oregon covers three kinds of paid leave: Family, Medical, and Safe Leave 

Family Leave

• To care for a family member with a serious illness or injury
• The birth of a child
• Bonding with a child:
  • In the first year after birth
  • Through adoption
  • When they’re placed in your home through foster care

• To care for yourself when you have a serious illness or injury

• For survivors of sexual assault, domestic violence, harassment, or stalking. 

If a worker is paid as an employee, earned at least $1,000 in wages the year before, and are currently working, they may be eligible for Paid Leave benefits, no matter how many hours they work. This means seasonal employees are covered by Paid Leave Oregon.

An employee’s job is protected when taking Paid Leave if they have worked for the same employer for 90 straight days. For example, if they apply for Paid Leave in their second week of work, their job is not protected.

Paid Leave Oregon contributions are the amounts employers and employees will pay into the program. Contributions start on Jan. 1, 2023. Employees can begin to apply for benefits starting Sept. 3, 2023.

• The total contribution rate for 2023 has been set at 1% on up to $132,900 in wages. The department decides the rate and wage cap by November 15 each year.
• Employees pay 60% of the contribution rate. For example, if an employee’s paycheck totals $1,000 dollars, they would pay $6 as their portion of the contribution rate for that paycheck.
• Employers with 25 or more employees pay 40% of the contribution rate. For example, if a business has more than 25 employees and pays $1 million in payroll, it would pay $10,000 into Paid Leave Oregon each year. Employers will pay 40% ($4,000) of this amount and employees would pay 60% ($6,000).
• Employers can choose to pay the employee portion, full or in part, as a benefit for their employees. 
• Small employers, those with fewer than 25 employees, are not required to pay into the program. But, you still need to collect and submit employee contributions and protect their job. Assistance grants are available for small employers.

It depends on whether or not:

• The corporate officers qualifies as “employee” as defined in section (13) of this section of the law
• Wages paid to the corporate officer qualify as “wages” according to these rules:
  • Bonuses, Fees, and Prizes
  • Gifts
  • Remuneration Types
  • Remuneration Other than Cash
  • Corporate Officer and Shareholder Dividends

Yes, the program covers nonprofit organizations and their employees. The program covers nearly all employers and employees in Oregon. Employees working for a nonprofit organization pay into the program and may qualify for Paid Leave benefits. Nonprofit employers with 25 or more employees are responsible for paying employer contributions to the program, withholding employee contributions, and protecting the jobs of qualified workers who take leave. Nonprofit employers with fewer than 25 employees are not required to pay the employer portion of contributions, but must still withhold employee contributions and provide job protections.

Yes, the program covers religious organizations and their employees. The program covers nearly all employers and employees in Oregon. Employees who work for a religious organization pay into the program and may qualify for Paid Leave benefits. Employers of religious organizations with 25 or more employees are responsible for paying employer contributions to the program, collecting employee contributions, and protecting the jobs of qualified workers who take leave. Employers of religious organization with fewer than 25 employees are not required to pay the employer portion of contributions, but still need to collect employee contributions and provide job protections.

The size of the business is based on an average headcount of employees working in and outside of Oregon (part-time and full-time employees). This number doesn’t include any employees hired to temporarily replace eligible employees when they take paid leave.

Employer contributions are based on total employer size. This includes the number of employees working within Oregon and those outside the state. If an employer has 25 or more employees, they must pay the employer's share of the contribution rate for employees who earn wages in Oregon. If an employer has fewer than 25 employees, the employer is not required to pay the employer's share of the contribution rate for employees who earn wages in Oregon.
 
Example: An Oregon company has three employees working in Oregon, 21 employees working in Idaho, and four working in Arizona. Because the company has 25 or more employees, they are subject to the employer contribution of 40% of the contribution rate. However, they will only pay the employer contribution on the three employee’s wages that work in Oregon.

We partner with our communities, businesses, employees and advocacy groups to make sure everyone working and living in Oregon can take the time they need when it matters most. We encourage all of our communities to stay connected with Paid Leave Oregon, and invite you to join us for future community events. 

An equivalent plan is a paid leave plan the Oregon Employment Department approved, which provides benefits that are equal to or greater than the benefits Paid Leave Oregon provides. If an employer already offers paid leave to their employees or is thinking about doing so, they can apply for an equivalent plan with the Oregon Employment Department. More information, including an equivalent plan checklist, is on the Paid Leave Oregon website.
Please keep in mind that an equivalent plan means:

• You must offer the same or more benefits than Paid Leave Oregon offers
• You cannot deduct more from the employee's contribution from their paycheck than allowed by Paid Leave Oregon
• You must first have the Oregon Employment Department approve the plan

The Oregon Department of Consumer and Business Services’ Division of Financial Regulation will approve insurance carriers, who can market their insurance products once approved.  Regardless of what carrier they choose, employers will still need to submit their paid leave program for approval by Paid Leave Oregon to ensure it meets program requirements. 

Paid Leave Oregon will accept applications for equivalent plans for Oregon’s Paid Leave program beginning in September 2022. The application fee for a new equivalent plan is $250. If an employer wants to offer an equivalent plan, they have two options:  

1. Buy an insurance policy from an insurance company, which will be responsible for all claims, benefits, and payments.
2. Create their own equivalent plan. This means the employer will be responsible for claims, benefits and payments of the equivalent plan, whether or not they use a third-party administrator.

If you want to use a current PTO policy as a Paid Leave Oregon equivalent plan, you can apply for approval beginning September 2022. The application fee for a new equivalent plan is $250. Information on equivalent plans is online. Please keep in mind that an equivalent plan means:

• You must offer the same or more benefits than Paid Leave Oregon offers
• You cannot deduct more from the employee's contribution from their paycheck than allowed by Paid Leave Oregon
• You must first have the Oregon Employment Department approve the plan. This means you may need to update your current PTO policy to meet these requirements.

The way Paid Leave Oregon defines wages is very similar to how Unemployment Insurance defines it.

Wages for Paid Leave Oregon include:

• Salaries and hourly pay
• Piece rate and by the job pay
• Vacation, sick, and holiday pay, and paid time off (PTO)
• Bonuses, fees, and prizes from an employer
• Compensatory time and stand by pay
• Commission or guaranteed wage payments
• Sickness and accident disability payments
• Dividends and distributions for services
• Tips and gratuities
• Dismissal and separation allowance
• Compensation other than cash, such as room and board (except for agricultural and domestic employees)
• Fringe benefits, such as company vehicles, company paid parking, sick pay by third parties (e.g. insurance companies), and dependent care assistance

• Payments to flexible spending accounts and health saving accounts that meet the requirements of the Internal Revenue Code (IRC) section 125 plan paid by the employer or employee 
• Health, dental, and other insurance paid by the employer
• Health, dental, and other insurance paid by the employee under the IRC Section 125 plan
• Meal and travel expenses and per diems paid by the employer under an accountable plan
• Retirement or pension income
• Sickness or accident disability under worker’s compensation

We are working with the Department of Revenue to determine which box of the W2 we will use for Paid Leave Oregon. We will provide employers with that information as soon as we have it.

Any employer-elected payments of the employee’s portion of the contribution responsibility are considered taxable wages to the employee.

The requirements are the same. If you are an employee of your S-Corp and are paid a salary as wages, the Oregon Employment Department would consider you an employee of that business for Paid Leave Oregon. This means you would pay the employee contribution. If you only receive payouts or distributions, you are considered self-employed. As a self-employed individual you are not automatically covered by Paid Leave Oregon. This means you are not required to pay into the program and you do not get the benefits. But, you have the option to choose coverage. If you choose coverage, you will contribute the same as an employee contribution. You can choose coverage beginning Jan. 1, 2023, and can apply for leave beginning Sept. 3, 2023.

Unlike Unemployment Insurance, Paid Leave Oregon does not have a reimbursing option. If you are a reimbursing employer, you are currently eligible to reimburse the state unemployment trust fund for benefits your employees receive rather than paying quarterly or annual unemployment contributions. There is no reimbursement option for the Paid Leave Oregon program. All employers will list Paid Leave Oregon wages and pay Paid Leave contributions on the combined payroll report each quarter.

The Paid Leave Oregon program will be part of the Oregon Combined Quarterly Tax Report schedule. We have drafted updates to payroll tax forms, including Form OQ and Form 132, to include Paid Leave Oregon. These updated forms will be released before Jan. 2023. Contributions begin Jan. 1, 2023.

Paid Leave Oregon will use the same filing rules for bulk filers as Unemployment Insurance in the combined payroll reporting system. The Oregon Employment Department’s new system will be ready to use starting September 2022. Frances Online will replace the Oregon Payroll Reporting System (OPRS) and the Employer Account Access (EAA) portal, beginning with the third quarter filing in 2022. The new system will support combined payroll reporting, including Unemployment Insurance tax, Workers’ Benefit Fund (WBF), State Withholding Tax, Lane and TriMet Transit Taxes, and beginning in the first quarter of 2023, Statewide Transit Tax (STT) and Paid Leave Oregon contributions. 

Learn more about Frances and file specifications at francesinfo.oregon.gov.

Paid Leave Oregon employee contributions must be noted on the employee’s paystub.

Yes. Starting September 2022, the Oregon Employment Department’s new system, Frances Online, will replace the Oregon Payroll Reporting System (OPRS) and the Employer Account Access (EAA) portal, beginning with the third quarter filing in 2022. The new system will support combined payroll reporting, including Unemployment Insurance tax, Workers' Benefit Fund (WBF), State Withholding Tax, Lane and TriMet Transit Taxes, and beginning in the first quarter of 2023, Statewide Transit Tax (STT) and Paid Leave Oregon contributions. We will soon send information to employers on how to access the new system and register for your new online account.

Employers will use their Business Identification Number (BIN) for reporting, paying, or asking questions about your Paid Leave Oregon account. They must include the BIN in all communications, returns, and payments. Some forms may also include the Federal Employer Identification Number (FEIN).

Employers will file quarterly through the Oregon Combined Quarterly Tax Report. We have drafted updates to the Form OQ and Form 132 to include Paid Leave Oregon, which we will release prior to January 2023. Employers will fill out the portion of all wages eligible for contributions under Paid Leave Oregon, the employee count, and contributions due. Each employer must also file an Oregon Employee Detail Report (Form 132) that includes paid leave subject wages. The Oregon Combined Quarterly Tax Report (Form OQ) is due on or before the last day of the month following the close of the calendar quarter.

It depends. Paid Leave Oregon uses the same localization standards as the federal unemployment insurance program and Washington Paid Leave program. Employers who have employees working and living in Oregon will likely need to participate in Paid Leave Oregon by collecting the employee’s share of the contributions. If an employer has 25 or more employees, they must pay the employer's share of the contribution for employees who earn wages in Oregon. If an employer has fewer than 25 employees, the employer is not required to pay the employer's share of the contribution for employees who earn wages in Oregon. However, employees working and living in Oregon would still pay the employee contribution.

Oregon residents who physically do all their work in another state do not pay contributions for Paid Leave Oregon and are not eligible for the program.

It depends on where each employee in your business works. Paid Leave Oregon uses the same localization standards as the federal unemployment insurance program and Washington Paid Leave program. You will likely not need to contribute in two states for the same employee. If your employee works primarily in Oregon, you will collect employee contributions and pay employer contributions into Paid Leave Oregon on all wages earned in Washington and Oregon. We are working with Washington to make sure we all follow the same rules for contributions so employees do not have to pay twice.

Paid Leave Oregon begins in 2023. Employers and employees will start paying contributions in January 2023, and employees can apply for benefits in September 2023. In September 2023, you can apply for leave through Frances Online or request a paper application. Paid Leave Oregon also created a resources directory to help people find support.

We understand your concern and we know this program is very important for all of our communities. It takes a lot of time for a new program to start. Paid Leave Oregon was signed into law in August 2019, and the COVID-19 pandemic began in March 2020. Many of our staff moved to work in Unemployment Insurance because many people lost their jobs at the beginning of the pandemic. This affected how we worked together, the amount of resources we had and how quickly we were able to roll out the program.
 
Please share this resources directory with your friends and loved ones. There are programs available right now that can help during this time, if they qualify.