Oregon Paid Family Medical Leave Insurance (PFMLI) – Delayed

Oregon is set to delay the start date for requiring contributions to the Paid Family & Medical Leave Insurance (PFMLI) program, by one year, under a new measure signed July 27 by the Governor.

  • Under the measure (H.B. 3398), employers are now required to begin withholding PFMLI contributions from employees’ paychecks on January 1, 2023, instead of January 1, 2022.
  • PFMLI benefits are to be available to employees starting September 1, 2023, extended from January 1, 2023.
  • The additional implementation time is to allow the PFMLI department to “develop rules, policies, and processes; hire necessary staff and set up facilities; plan outreach events to raise awareness about the program; and build a technology system that will fully support the PFMLI program.”
  •  The deadline for the department to adopt rules implementing the program was extended to September 1, 2022, from September 1, 2021.

This information can be found here.

Summary of PFMLI:

  • The PFMLI Program is a state program that will provide a partial or full salary replacement for up to 12 weeks for almost every Oregon employee while they are taking a family leave; medical leave; or safe leave to deal with domestic violence, sexual assault, stalking, or harassment.
  • The law will protect the employee’s job while on leave if they have been employed by the company for at least 90 days before the leave begins.
  • The PFMLI program sets a maximum contribution rate of 1% of employees’ wages; all employees will pay 60% of the contribution rate and employers will pay 40%.
    • Employers with 24 or fewer employees are not required to pay the employer portion of PFMIL.
      • If these employers choose to pay the employer portion of the contribution rate, they are eligible for assistance grants to cover the cost of hiring temporary staff while current employees are out on paid leave.

How can RASI assist restaurants to remain in compliance with the law?

If your company is currently stuck in a manual tracking system, RASI can import the current balances by employee and take over the process with our web-based payroll system. Contact us here to learn more.


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