Do employers have to provide paid family leave in Oregon?

Not yet – but soon. Oregon employers will begin providing paid family leave under the newly legislated Family and Medical Leave Insurance (FAMLI) Program in 2023. FAMLI establishes an insurance fund employers and workers pay into to provide 12 weeks of job-protected, paid leave of absence per year. The law also allows a total of up to 16 weeks total (paid and unpaid) leave per year and 18 weeks for employees who experience complications during pregnancy or childbirth.

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.