In Oregon’s ever-evolving business landscape, small employers must acutely understand the state’s paid leave policies.
A cogent comprehension of these policies not only supports compliance with state regulations but also assists in safeguarding employees’ rights and fostering a supportive workplace environment. With policies varying based on circumstances and employee size, there is a significant need for a comprehensive, easy-to-follow guide specifically tailored for small employers. The subsequent article is aimed at simplifying and navigating Oregon’s paid leave policies from a small employer’s perspective. From outlining the nuts and bolts of legislative requirements to offering practical implementation advice, this guide is designed to walk small employers in Oregon through the complexities of paid leave.
What is a Small Employer?
In the context of PAID LEAVE OR, a small employer is defined as having fewer than 25 employees. While all employees, regardless of employer size, contribute to the program, small employers have the option to provide this as a benefit to their employees without being required to contribute financially.
Contributions for Small Employers
For small employers and their employees, the contribution rate for 2023 is 1% of gross wages. All employees, regardless of employer size, pay 60% of this rate while large employers cover the remaining 40%. Small employers are not obligated to pay the employer contribution but are responsible for withholding and submitting the employee portion of contributions with their payroll reports.
Determining Employer Size
Employer size is determined by counting employees using payroll reports, including full-time, part-time, seasonal, and temporary workers, as well as out-of-state employees. The count includes both in and out-of-state workers, except for those hired solely to replace employees on paid leave.
Benefits for Small Employers and Employees
Like all employers, small employers must return employees who take paid leave to their previous position, if available. If the position no longer exists, the employer may assign the employee to a similar role with comparable pay. Small employers who choose to pay the employer contribution may receive assistance grants to help cover the costs of hiring replacement workers or other wage-related expenses.
The available grants include:
- A $3,000 grant for hiring a replacement worker
- A $1,000 grant for wage-related costs (e.g., overtime, training) up to $30,000 per year
If you’re a small employer, we hope this article has provided valuable information about the impact of the PAID LEAVE OR program. To learn more, please visit our website or reach out to us via email or phone. We are here to assist you!