Do employers have to provide paid family leave in Oregon?
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Beginning in the fall of 2021, the State will issue rules outlining administration of the FAMLI program and costs. On January 1, 2022, employers begin contributing to a newly established FAMLI fund through payroll deductions: 40% paid by the employer, 60% by the employee. The tax is expected to be about 1% of payroll. On January 1, 2023, employees can utilize paid leave for their own or family member’s serious medical condition, if they are a victim of domestic violence, or the birth or placement of a child. Employees who earn $1,000.00 per year qualify for the benefit.
Businesses with less than 25 employees are exempt from paying into the fund, but if they do, they’ll be eligible for grants to help cover costs incurred for replacement workers.
Oregon is only the eighth state to pass paid leave. Expect more states to establish insurance funds and mandate paid leave as this much-desired benefit continues to sweep the nation.
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