Oregon’s new law, Paid Leave Oregon, takes effect January 1, 2023 — and Oregon employers need to prepare now. If they do nothing, businesses will automatically be enrolled in the state plan. However, there are private, qualified plans employers can choose instead, which may save them money, but need to act by November 30, 2022.
“As laws change, it can be difficult for businesses to remain compliant with the latest state insurance regulations,” said John Henry, co-founder and managing director of Total Benefit Solutions. “TBS works with MetLife to create awareness for employers and their brokers of the qualified insurance option to make sure they enter the program with their eyes open and make an informed decision.”
Total Benefits Solutions and MetLife Offer Cost Effective, State Approved Options For employers with two or more employees, the new partnership between Total Benefit Solutions (TBS) and MetLife helps with compliance and allows access to high quality paid leave benefits in combination with a MetLife dental or disability plan. They provide Oregon employers a qualified equivalent plan, MetLife PFMLI. Employers should reach out to their brokers, or find a referral, through Total Benefit Solutions and utilize its landing page, where a calculator can provide more information about the law and its options.
Details of the Paid Leave Oregon
Under the new law:
- Eligible employees can qualify for a weekly income up to 100 percent of their current salary.
- Employees will pay 60 percent of the contributions.
- Employers with more than 25 employees will pay up to 40 percent.
- Businesses and organizations with 25 or more employees are required to contribute to Paid Leave Oregon.
- If less than 25 employees, the company collects and submit payments from employees.
Contract employees and members of tribal governments do not qualify for this type of insurance but may opt into the program.
Type of Leave Included
Medical conditions covered are similar to what is covered by the Oregon Family Leave Act, but there are some differences in the new law. Employees will be able to take up to 12 weeks a year to:
- Bond with a child during its first year of life, adoption, or foster care placement.
- Care for a family member with a serious health condition.
- Handle an employee’s own serious health condition.
- Deal with issues related to domestic violence, harassment, sexual assault, or stalking.
Employees may qualify for up to two additional weeks for pregnancy or pregnancy-related issues, for a total of 14 weeks.
The Oregon Family Leave Act Mandate and Deadline
Right now, many employers do not yet have existing plans in place that meet the new state criteria. If businesses already offer Paid Family Leave, they may be able to use their own plan. However, it must offer at least the same benefits as Paid Leave Oregon and have it approved by the Oregon Employment Department.
Payroll deductions for the coverage start Jan 1, 2023, Employees can start filing claims for paid family medical leave insurance on Sept. 3, 2023
About Total Benefit Solutions:
Total Benefit Solutions, established in 2003, is headquartered in Bellevue, Washington, and specializes in group health plans that provide both choice and flexibility for smaller businesses and organizations. In 2017, TBS launched its sister company, ScalePEO, a Professional Employer Organization, which provides access to benefits, administers payroll and HR, and assists with compliance.
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee
benefits and asset management to help its individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East.