December 2024

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Oregon Expands Family Leave Act

08/03/23

Author: ADP Admin/Tuesday, August 1, 2023/Categories: Compliance Corner , State Compliance Update, Oregon

Oregon has enacted legislation (Senate Bill 999), which, for leave purposes, amends the definition of a one-year period, expands who qualifies as a family member, and adds employee reinstatement requirements under the Oregon Family Leave Act, among other things. Most of the changes take effect on Sept. 3, 2023.

The details

One-year Period

As background, the Oregon Family Leave Act (OFLA) specifies the amount of family leave that an employee may take in a "one-year period."

Effective July 1, 2024, Senate Bill 999 amends the definition of a one-year period to mean:

  • A consecutive 12-month period, such as a calendar year or fiscal year; or
  • A period of 52 consecutive weeks that starts the Sunday before the date that the OFLA leave begins. For example, the one-year period for an employee's OFLA leave that starts on Wednesday, July 3, 2024, would span from Sunday, June 30, 2024, to Saturday, June 28, 2025.

Qualifying Family Members

Effective Sept.  3, 2023, the definition of a "family member" under the OFLA is expanded to include:

  • A domestic partner (regardless of gender) or spouse or domestic partner of sibling, child, grandparent, or grandchild;
  • Siblings and step-siblings; and
  • An individual related by blood or affinity whose close association with a covered individual is the equivalent of a family member.

The Commissioner of the Bureau of Labor and Industries will adopt rules for determining whether a close association exists (which may include a form) by Sept. 3, 2023.

Note: The expanded definition will also apply to the Paid Leave Oregon Program (PLO).

Reinstatement Requirements

As background, under OFLA, an employee that returns from their leave must be restored to the same position they held before their leave (or an equivalent position if their previous position no longer exists). Additionally, if an equivalent position is not available at the same job site, the employee may be offered an equivalent job at a different location that is within 20 miles of the previous job site.

Beginning Sept. 3, 2023, if there is no equivalent position at the same job site, an employer must offer an equivalent position at a different location if a position is available, but the location only needs to be within 50 miles of the prior job site. And, if equivalent jobs are available at multiple sites, employers must offer the position at the job site that is closest to the employee's previous job site.

Benefits Contributions

As background, when an employee takes protected leave under OFLA or the PLO, an employer must maintain the employee's health care benefits as if the employee had not been on leave.

Senate Bill 999 clarifies that effective Sept. 3, 2023:

  • Employees must continue making regular contributions to their health insurance premiums while on leave; and
  • Employers that choose to cover the employee's portion of the insurance premium while the employee is on leave (not mandatory) may deduct those costs from the employee's paycheck upon the employee's return from leave. Note: These deductions may not exceed 10% of the employee's gross pay.

Next steps

  • Review and update leave policies.
  • Consider aligning the FMLA leave year with OFLA and PLO, keeping in mind that under the FMLA:

Please contact your dedicated service professional with any questions.  

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