As of January 2023, Oregon businesses must manage compliance with Oregon Paid Lave, a new paid leave law creating requirements regarding a state-paid leave fund. Oregon employers need to ensure they are prepared to comply with and understand the contribution rates as well as other responsibilities under the new legislation.
Oregon Paid Leave in 2023
In addition to Oregon Sick Time and Oregon Family Leave, businesses must also manage compliance with Paid Leave Oregon, a state-run paid leave program that makes paid leave available to employees who may otherwise not have any.
For employers, this means a new Oregon State payroll tax and deduction that employers must keep track of as well as contribute to.
Here are the requirements for Oregon Paid Leave.
Oregon Paid Leave Requirements
As of January 2023, payroll contributions must be made by employers in Oregon to the state's paid leave fund regardless of company size. Payroll contribution rates will be set by the state annually and cannot exceed 1%.
For Companies with 25 or More Employees
- The contribution rate for employers and employees will be 1%
- Employees will contribute 60% of that 1%
- Employers will contribute 40% of that 1%
- Employers can pay the employee portion and consider it a benefit
For Companies with Less Than 25 Employees
- The contribution rate for employees will be 1%
- Employers can pay the contribution and consider it a benefit
Payroll contributions accumulate in a state fund, which will be used to cover employee-paid leave. Starting September 3, 2023 employees will be able to start applying for paid leave.
Other Oregon Sick Time and Leave Requirements
This paid leave program runs in conjunction with Oregon Sick Time Law and the Oregon Family Leave Act (OFLA), entitling to 12 weeks of protected employee paid leave for family, medical, or safe (i.e. harassment, stalking, etc.) reasons. Companies must adhere to any legislation they are required to comply with across these sick leave laws.
Get Help With Oregon Paid Leave
Adjusting to new legislation can be difficult. An Oregon payroll service can help navigate these changing laws and update your payroll processes to help ensure compliance with Oregon payroll laws. As always GNSA is ready to assist customers with new requirements through the PeoplePro Platform.
To learn more about how GNSA is already helping countless businesses manage HR compliance and prepare for the new paid leave program, contact us today or view our company resources.
Companies can find more information on the Oregon Paid Leave website, as well as sign up for alerts regarding the new paid leave insurance program from the Oregon Employment Department.