Oregon Paid Family and Medical Leave
The Oregon PFMLI program allows for alternate plan options for businesses to consider in meeting their obligations under the law. To help ensure an optimal experience for employees, businesses must choose between the state-run plan or a private plan for their Oregon Paid Family and Medical Leave (OR PFML) coverage. If your business is considering a private plan, review below for more information to assist you in meeting your obligations as an Oregon employer.
Provides up to 12 weeks of paid family or medical leave per year to most employees who work in the state, with two additional weeks available for limitations related to pregnancy, childbirth, or a related medical condition (including lactation).
Uses a broad definition of family member, which will include “any individual related by blood or affinity whose close association with a covered individual is the equivalent of a family relationship.”
Becomes the first PFML program to reach 100% income replacement for lower wage earners.
Includes job protections for employees who have worked for their employer for at least 90 days.
All employers with one or more employees working within the state of Oregon. Covered employers include:
Political subdivisions of the state or any county, city, district, authority, or public corporation.
Any type of organization, corporation, partnership, and limited liability company.
Federal government, tribal government, and self-employed business owners are excluded from coverage requirements. However, tribal government and self-employed employers may opt into the program.
An employee who works for a covered employer becomes eligible for OR PFML benefits after they have earned at least $1,000 in wages, subject to premium contribution, during the year prior to claiming benefits.
Eligible employees can take paid leave for the following leave types/qualified reasons:
Bonding after birth, adoption, or foster placement of a child
Care for a family member with a serious health condition
An employee’s own serious health condition
Safe Leave for victims of domestic violence, sexual assault, harassment, bias crimes, or stalking
Covered family members include spouse, domestic partner, child, parent, grandparent, grandchild, sibling, or any individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship.
Employee will be eligible for up to a combined 12 weeks of paid family and medical leave for any qualified leave type, with up to an additional two weeks of leave available to employees for limitations related to pregnancy, childbirth, or a related medical condition, including but not limited to lactation. The total combined maximum weeks available will be 14 weeks within a benefit year.
Leaves may be taken on a continuous or intermittent basis in full workday increments.
The weekly benefit will vary based on an employee’s average weekly wages (AWW). The weekly benefit will be calculated as:
Employees who earn less than or equal to 65% of the state average weekly wage (SAWW):
100% of employee’s AWW
Employees who earn greater than 65% of the SAWW:
65% of the SAWW, plus 50% of employee’s AWW that is greater than 65% of the SAWW, up to the maximum weekly benefit.
Maximum weekly benefit will be 120% of the SAWW — $1,568.60 for 2025 and subject to change annually, every July.
Minimum weekly benefit will be 5% of the SAWW — $65.36 for 2025 and subject to change annually, every July.
Job protection is included for employees who have been employed with their employer for at least 90 days.
OR PFML required employers providing the mandated PFML coverage using the state program to begin payroll deductions starting January 1, 2023.
The total combined rate for employer and employee contributions for 2025 is set at 1.0% of employee’s wages, up to the Social Security wage base of $176,100, which is subject to change annually. Rate is subject to change annually as well but cannot exceed 1.0% of employee’s wages.
Shared cost – 60% employee paid; 40% employer paid
Under the state program, employers with fewer than 25 employees do not pay the employer share of the premium but must forward the employees’ premium share to the program. However, employers who elect to pay the employer contribution may be eligible to apply for grants from the state to assist with certain costs related to the program.
Employers can participate in the state-run program, or seek approval to offer a private plan option, either a self-insured or fully insured private PFML plan.
If an employer opts out of the program, the employer will need to adhere to the established guidelines and requirements set forth by the state to apply for approval to offer a private plan coverage. The “equivalent plan” they choose to provide must:
Be approved by the state of Oregon
Meet or exceed the requirements of the state program
Cost employees no more than the state plan
Oregon covered employers are required to provide written notice to all eligible employees of their duties and rights under the OR PFML program in addition to other required disclosures. The notice must be provided to an employee in the language the employer typically uses to communicate with the employee. The Director of Oregon’s Employment Department has provided a model notice for the employer’s use to meet this obligation.
What is Guardian doing?
Guardian offers a fully insured private plan option for OR PFML coverage. You can count on:
Dedicated support to file a private plan exemption with the state.
Assistance with adjusting Short Term Disability (STD) and Long Term Disability (LTD) plan designs to integrate with a PFML plan.
A single point of contact for disability and/or paid leave claims inquiries.
Experienced claims management by tenured professionals, including safe and effective return to work support.
Updates on new regulations and ongoing guidance to keep you compliant.
The state of Oregon under the Employment Department is currently developing its PFML regulations, including specifics on how its program will be implemented. We are actively collaborating with the state of Oregon, monitoring all developments as they become available. We help keep our customers and brokers informed every step of the way.
Guardian can help you manage it all
Effective employee leave management is key to ensuring your business remains compliant with state laws, helping you avoid costly fines.
Guardian has provided employers with statutory disability plans for more than a decade, taking a consultative approach to bring resources together for successful PFML plan implementation and management, no matter the level of complexity. Our management of PFML plans helps ensure that any Human Resources team can meet the challenge of efficiently managing employee leaves while easing administrative burden and enhancing compliance. Our plans are fully insured, state approved, and backed by digital capabilities designed to help make administration easier.
Further, our Guardian absence management solutions℠ can help reduce the administrative burden and enhance compliance with the integrated management of STD and LTD benefits, state and federal family medical leaves, and company leaves. Available to companies with 50 or more employees, employers can choose from a variety of plans and service options, including ADA support.
To learn more about Guardian leave management services, reach out to your Guardian group sales consultant or broker.
Our plans are fully insured, state compliant, and backed by digital capabilities designed to help make administration easier.
The State of Oregon Employment Department is currently developing its PFML regulations, including specifics on how its program will be implemented. Leave and wage replacement benefits available to eligible Oregon workers is currently scheduled to commence on September 3, 2023. All terms of coverage, including benefits, eligibility, coverage limitations and exclusions under Guardian’s Oregon Paid Family and Medical Leave plan (OR PFML) will comply with OR PFML law and regulation. Any optional riders and/or features which may be available may incur additional costs. Plan documents are the final arbiter of coverage. If there is a discrepancy between this document and the Certificate/Group Policy issued by The Guardian Life Insurance Company of America, the Group Policy will govern.
Group insurance products are underwritten and issued by The Guardian Life Insurance Company of America, New York, NY. Products are not available in all states.
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Guardian Absence SolutionsSM is a service mark of The Guardian Life Insurance Company of America.