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.

Most employees in Oregon are eligible for Paid Leave Oregon.

• If you’re an employee in Oregon who made at least $1,000 the year before applying for paid leave, you may be eligible. 
• Whether you work full-time, part-time, seasonally, 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.

• 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 it won’t be more than 1% of an employee’s gross wages.
• For example, if an employee’s paycheck totals $1,000, they would pay $6 as their portion of contributions for that paycheck. 
• The contribution rate for 2023 is 1%.

Here’s how it works for employers: 

• 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 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, don’t have to contribute. But, they still need to collect and submit employee contributions and protect employees’ jobs while they are on paid leave.
• Assistance grants are available for small employers.

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 their employees' 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.

Paid Leave may only use the trust fund money to pay benefits, award grants, and cover the Oregon Employment Department’s administrative costs. These costs include paying back the general fund loan that paid for the start-up of Paid Leave.

OED announces the statewide average weekly wage each year in June on its website and in its press releases and bulletins. Paid Leave Oregon also includes this information in its bulletins. It is effective from July 1 through June 30 of the next year. The statewide average weekly wage is the average weekly wage amount all employees in Oregon earn.

Depending on their circumstances, it may be possible for employees to qualify for both programs. Oregon and Washington operate different paid leave programs. Employees should check with their employer to find out the programs to which their employer pays contributions. Employees can also contact Paid Leave for more information.

If you are self-employed or an independent contractor, you’re not automatically covered by Paid Leave Oregon. This means you don’t have to pay into the program and you don’t get the benefits. However, you can participate by choosing coverage. If you choose coverage, you will pay 0.6% of your annual net income in contributions, up to a maximum of $132,900 in income (for 2023). This is the same portion of the contribution rate employees pay, but you will pay quarterly. When you choose coverage, you must also agree to pay contributions for at least three years and report your annual net income each year. Paid Leave uses this information to calculate your contribution amount. Self-employed people have been able to choose coverage since Jan. 1, 2023 and can apply for leave beginning Aug. 14, 2023.

It depends on your business and how you pay yourself. 

• If you pay yourself like an employee, Paid Leave considers you an employee and you pay into the program like all other employees.
• If you pay yourself like an employee and you are the only employee of your business, you are a small employer because you have fewer than 25 employees. This means you don’t have to pay the employer portion. The contribution rate has been set for 2023 at 1%. Employees pay 60% of this rate. As the only employee, you pay the employee contribution.
• If you pay yourself as someone who is self-employed, then Paid Leave doesn’t automatically cover you. This means you don’t have to pay into the program and you don’t get the benefits. You can choose coverage. If you choose coverage, you will pay 0.6% of your annual net income from self-employment in contributions, up to a maximum of $132,900 in income for 2023. You can choose coverage now. If you have chosen coverage, you can apply for leave beginning Aug. 14, 2023.

Most employees in Oregon who made at least $1,000 in the year before they apply for benefits may be eligible. On Aug. 14, 2023, eligible employees can apply for benefits. They can start taking paid leave on Sept. 3, 2023. Employees apply for paid leave and file claims with Paid Leave. Paid Leave Oregon—not their employer—pays them their benefits (except when the employer has an equivalent plan). Employees can receive benefits by direct deposit or debit card.

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 2023-2024 is $1,269.69. Based on that, the minimum weekly benefit is $63.48 and the maximum weekly benefit is $1,523.63. 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.

Yes. Paid Leave covers all agricultural employers and their employees. This is different from the Unemployment Insurance (UI) Program, which only covers agricultural employers that have more than a certain number of employees or amount of wages. This means that while Paid Leave covers all agricultural employers, the UI Program doesn’t cover all agricultural employers. All agricultural employees are eligible to apply for and receive Paid Leave benefits.

No, there will be no waiting week for Paid Leave benefits in Oregon.

Yes. New parents can apply for Paid Leave within the first year of the birth of their child, adoption, or foster care placement to bond with the child.

Yes. There is no age limitation to be eligible for Paid Leave benefits.

Yes. You can apply for Paid Leave benefits as early as Aug. 14, 2023. Your qualifying event needs to happen after Sept. 3, 2023, or it has to be ongoing. For example, if you have surgery in August 2023, but you still experience medical complications that are a “serious health condition” after Sept. 3, 2023, then you would be eligible to apply for Paid Leave.

Yes. If you don’t have a Social Security Number (SSN), you can use an Individual Taxpayer Identification Number (ITIN) to apply for benefits. You are eligible to apply for benefits if you have earned $1,000 in wages within a year before you apply. If you are not eligible for a SSN, you can apply for an ITIN through the Internal Revenue Service (IRS), if you have or don’t have a work authorization. Contact the IRS or the Oregon Employment Department for more information on how to get an ITIN.

You can use your Paid Leave benefits on a consecutive or intermittent schedule. You can’t take paid leave for less than a day. When you take a day of paid leave, you can’t work for any of your employers, even yourself if you are self-employed. Consecutive leave means you take leave from the start date to the end date of your leave, and you don’t work during this time. Intermittent leave means you take days or weeks of leave between the start date and end date of your leave, but also work some days or weeks during this time.

If you return to work before your leave ends, you must update your return date with Paid Leave. Otherwise, these payments will be overpayments, and you will have to pay back the overpayment to the Oregon Employment Department with potential interest and penalties.

Only Oregon Employment Department staff will have access to your medical, family, and safe leave information. We use your Social Security Number (SSN) to verify your identity through the Social Security Administration (SSA). We report your benefit payments to the Internal Revenue Service (IRS) and the Oregon Department of Revenue on a Form-1099. We also share this payment information with other state agencies that need this information for their programs.

It depends on your employer. They can decide if you can use paid sick time, vacation leave, or any other paid leave you have earned in addition to Paid Leave Oregon benefits (ORS 657B.030).

Paid Leave Oregon contributions are the amounts employers and employees pay into the program.

Contributions started on Jan. 1, 2023. Employees can begin to apply for benefits starting Aug. 14, 2023. Benefits begin 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, 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 in contributions each year. Employers pay 40% ($4,000) of this amount and employees pay 60% ($6,000).
• Employers can 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, don’t have to pay into the program. But, they 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.

OED sets the Paid Leave contribution rate so that at the end of the year there is enough money in the trust fund to pay at least six months of expenses. The contribution rate cannot be higher than 1%.

No. The Oregon Employment Department deposits all contributions into the Paid Leave Oregon Trust Fund for all employees to use. Paid Leave doesn’t connect contributions to a specific employee.

No, All employees must pay Paid Leave contributions.

No. Paid Leave requires contributions from all Oregon employees on the first $1 of wages as of Jan. 1, 2023.

Contributions for Paid Leave Oregon go into an overall state trust fund. These funds are available to employees when they qualify and Paid Leave approves them for a family, medical, or safe leave qualifying event. Paid Leave doesn’t apply contributions to individual employees.

What you pay in contributions for your employees is not an amount you report in Form OQ. You fill in the employee and employer Paid Leave Oregon subject wages and contribution information on your combined quarterly payroll report. Paid Leave doesn’t need to know who paid the employee contribution; it would be up to the employer to track the payments. The employees’ paystub should track what you paid for them.

No. All employers must pay either both the employer and employee contributions, or at least the employee contributions. If you are a large employer (25 employees or more), you must pay employer contributions. If you are a small employer (less than 25 employees), you don’t have to pay contributions unless you apply for an assistance grant. You must always pay employee contributions, which you can take out of your employees’ paychecks.

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. 

If you want to offer an equivalent plan that provides the same or better benefits as the Paid Leave Oregon plan, you have two options:

1. Buy an insurance policy from an insurance company, which will be responsible for all claims, benefits, and payments. Oregon Department of Consumer & Business Services (DCBS) must approve the insurance company to provide equivalent plan policies.
2. Create your own equivalent plan. This means you will be responsible for claims, benefits, and payments of the equivalent plan, whether or not you use a third-party administrator. In either case, you must apply through Paid Leave and pay the $250 application fee for a new equivalent plan. Paid Leave will need to review and approve any equivalent plan before you can offer it to your employees. More information on equivalent plans is online.

When your employee leaves, their contributions remain in the equivalent plan fund for the payment of benefits to other employees. Employers with an equivalent plan hold employee contributions in trust for the payment of benefits to employees covered under the plan and for plan administration. You or your plan administrator can’t use those funds for anything else. If your employee’s new employer participates in Paid Leave Oregon, they will be eligible for benefits through that program.

Yes. You must file combined payroll reports and provide Paid Leave subject wage information for all employees on Form 132 - Employee Detail Report and employee count information on Form OQ - Oregon Combined Quarterly Report. The only difference in payroll reporting for equivalent plan employers is that the contribution amount due is zero. Tax forms and more information on payroll reporting can be located here. Gross wages are the amount you pay your employees before you take out any taxes or deductions, and are sometimes equal to subject wages. If your employees have specific deductions such as flexible spending or health savings accounts, you will remove these deductions from your employees' wages before taxes and other deductions. In this case, this amount is your employees' subject wages.

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

Wages for Paid Leave Oregon do not include:

• 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

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.

Paid Leave Oregon contributions started Jan. 1, 2023. Employers collect contributions from their employees' paychecks and report them quarterly on the Oregon Combined Quarterly Tax Report. This report is due one month after the end of a quarter. More information about filing it is available on our website.

Paid Leave Oregon uses the same filing rules for bulk filers as the Unemployment Insurance Program does in the combined payroll reporting system. Frances Online replaced the Oregon Payroll Reporting System (OPRS) and the Employer Account Access (EAA) portal. Frances Online supports combined payroll reporting, including Unemployment Insurance Program tax, Workers’ Benefit Fund (WBF), State Withholding Tax, Lane and TriMet Transit Taxes, Statewide Transit Tax (STT), and Paid Leave Oregon contributions. Learn more about Frances and filing specifications at francesinfo.oregon.gov.

It depends. The employer can fix it by taking out more contributions from their employee’s future paychecks. The employer has to make this correction during the same calendar quarter the contributions were due. 

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

Employers will use their Business Identification Number (BIN) for reporting, paying, or asking questions about their Paid Leave 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 subject wages and contributions quarterly through the Oregon Combined Quarterly Tax Report on the Form OQ and Form 132. The Oregon Combined Quarterly Tax Report is due on or before the last day of the month following the close of the calendar quarter.More information about filing the Oregon Combined Quarterly Tax Report is available on our website.

It depends. Employers who have employees working and living in Oregon will likely need to participate in Paid Leave Oregon by collecting the employees’ share of contributions. If an employer has a total of 25 or more employees, regardless of where their employees work or live, Paid Leave considers the employer a large employer, and 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 doesn’t have 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. Learn more in our Place of Performance Fact Sheet.

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, and any work done outside of Oregon is minor, you will collect employee contributions and pay employer contributions to Paid Leave Oregon on all wages earned in Washington and Oregon. We have worked with Washington to make sure both states follow the same rules for contributions so employees do not have to pay twice. Find more details in our Place of Performance Fact Sheet.

Yes. If your employee has worked for you for more than 90 days, they have the right to return to their original position or a similar position with similar job duties and the same benefits. When hiring temporary employees, you will need to clearly state the date the job or project ends.

Paid Leave will let you know when your employee applies for benefits and again when we approve or deny their application. The notice you’ll receive will include your employee’s leave start and end dates, leave schedule (consecutive or intermittent), amount of leave (number of days), and the status of their application (received, approved, denied). All other information about your employee’s benefits is confidential.

You can require your employee to share the following details when they let you know about their leave: 

• The type of leave they are taking (medical, family, safe)
• Why they need to take leave (their covered life event)
• When and for how long they expect to take leave. If they don’t know exactly when or how much leave they will take, they can give you an estimate. 

It depends. You will need to create your own policies on the use of PTO while your employee is waiting for or receiving Paid Leave benefit payments. You can decide if your employees can use paid sick time, vacation leave, or any other paid leave they have earned, in addition to Paid Leave Oregon benefits (ORS 657B.030).

You should provide the model notice posters to employees. It provides general information about Paid Leave and includes contact information if they have questions that the poster doesn’t answer. The employee should fill out their application for benefits.

No. But, you can decide if your employees can use paid sick time, vacation leave, or any other paid leave they have earned, in addition to Paid Leave Oregon benefits (ORS 657B.030).

No, generally Paid Leave doesn’t need you to verify your employee’s information to make a decision on a claim. You can let Paid Leave know about potential issues. For example, if you receive notification about an employee applying for leave, you may let Paid Leave know that the employee doesn’t work for you, or that they didn’t give you the appropriate notice before they took leave.

Yes, while your employee is on leave, you must maintain the same health care benefits your employee had before their leave. You can require your employee to pay their share of their health care premiums while they are on paid leave.

No. You are responsible for maintaining your employee’s health care benefits while the employee is on paid leave. However, you may collect the employee’s unpaid health care premiums from their wages when they return.

No. Paid Leave calculates the employee’s weekly benefit amount based on the employee’s average weekly wage during the 12 months before their benefits start, known as the base year.

Yes, as long as the employee has worked for at least 90 consecutive days with you. Paid Leave Oregon law guarantees all employees (full-time, seasonal, temporary, or limited duration employees) job protection after they have worked for their employer for 90 consecutive calendar days.

We encourage employees to review their short- and long-term disability plans. These plans may have restrictions on accessing or receiving Paid Leave benefits while you are receiving disability benefits. Paid Leave is separate and different from short and long-term disability plans.

You have to tell your employer about your leave at least 30 days before you start it. In an emergency, you need to tell your employer about your leave within 24 hours of starting your leave. You also have to give them written notice within three days of starting your leave. If you can’t tell your employer about your leave on time, we will reduce your first weekly benefit payment by 25%. If you can’t give notice to your employer on time for good cause, we may not reduce your first weekly benefit.

No. Paid Leave is not responsible for any cost related to getting required documents.