By: HUB's Absence Management Team

This bulletin has been updated to provide additional information and deadlines related to the major changes resulting from Senate Bill 515 that takes effect on July 1, 2024.

The Oregon Bureau of Labor and Industries issued temporary rules earlier this month outlining an employer’s right to rescind leave previously protected by OFLA. For example, if an employee is scheduled to take parental leave under OFLA after July 1, 2024, their employer may rescind that leave as OFLA-qualifying if they notify the impacted employee in writing no later than June 1, 2024.

The previously released bulletin regarding Senate Bill 1515 is provided below for reference.

On March 21, 2024, Governor Kotek signed into law Senate Bill 1515, reducing a number of redundancies within the Oregon Family Leave Act and Paid Leave Oregon state-mandated programs. The changes will go into effect on July 1, 2024.

Overview

Under the Oregon Family Leave Act (OFLA), eligible employees are entitled to unpaid, job-protected leave for qualifying leave reasons. The protections and entitlements provided under OFLA are very similar to those provided under the federal Family and Medical Leave Act (FMLA).

Under Paid Leave Oregon (PLO), which is the state’s paid family and medical leave program that went into effect on September 3, 2023, covered employees are eligible for paid leave for qualifying reasons, many of which are highly duplicative of the qualifying leave reasons and protections provided under OFLA.

The changes made to these programs through Senate Bill (SB) 1515 go into effect as of July 1, 2024, and repeal duplication between the two programs and further clarifies their provisions. An overview of the changes to each program is provided below.

Changes to Oregon Family Leave Act

The qualifying leave reasons provided under OFLA are limited to include the following:

  • To care for a child who requires home care due to an illness, injury, or serious health condition (12 weeks in any one-year period);
  • Bereavement leave for the death of a family member (two weeks per each family member, four weeks maximum within any one-year period);
  • Leave for pregnancy disability; and,
  • Leave for the donation of organs, body parts, or body tissue.

From July 1, 2024, to December 31, 2024, employees will be entitled to take two additional weeks of leave to assist with the placement or adoption of a child; beginning January 1, 2025, this reason will only be covered under PLO.

SB 1515 also clarifies that OFLA leave will no longer run concurrently with leave taken under PLO; as of July 1, 2024, OFLA leave will be in addition to PLO leave. In instances where an employee’s leave qualifies under both programs, OFLA is only triggered once an employee’s PLO entitlement has exhausted. For example, if an employee fully exhausts their PLO due to a pregnancy disability, they would be entitled to an additional 12 weeks of unpaid OFLA leave for the same pregnancy-related disability.

Changes to Paid Leave Oregon

The qualifying leave reasons provided under PLO will remain unchanged; however, SB 1515 provides additional clarification regarding PLO’s interaction with and applicability of other programs to PLO.

Use Accrued Paid Time Off

  • Employees taking PLO are now entitled to use accrued paid time off to top-up their pay to 100% (previously this was up to employer policy). Employers retain the option to allow employees to receive over 100% of their regular pay (but are not required to do so).
  • SB 1515 requires the Oregon Bureau of Labor and Industries (BOLI) and the Oregon Employment Department (OED) to develop a mechanism to share an employee’s PLO benefit amount with their employer.

Clarification of Workers’ Compensation and Unemployment benefits during PLO

  • SB 1515 further clarifies that employees who are eligible for workers’ compensation or unemployment benefits will not receive PLO benefits.

Predictive Scheduling Exception

  • Oregon’s predictive scheduling law requires certain employers to provide written work schedules at least two weeks prior to the scheduled work or pay a penalty wage to employees subjected to scheduling changes without required 14-day notice.
  • SB 1515 provides a new exception to this requirement in the instance of an employee commencing or returning from protected leave when the employee does not provide at least 14 days advance notice to their employer.

Garnishments

  • PLO benefits are now exempt from most forms of garnishment with the exception of child or spousal support garnishments and restitution for crime victims.

Next Steps

These new regulations go into effect July 1, 2024. Employers should review and update their leave policies, procedures, and related documents (e.g., leave forms, tracking systems, etc.) to align with these changes.

NOTICE OF DISCLAIMER

Neither Hub International Limited nor any of its affiliated companies is a law or accounting firm, and therefore they cannot provide legal or tax advice. The information herein is provided for general information only and is not intended to constitute legal or tax advice as to an organization’s specific circumstances. You should consult an attorney, accountant, or other legal or tax professional regarding the application of the general information provided here to your organization’s specific situation in light of your organization’s particular needs.