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What You Need to Know About PFMLI
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Considerations for Oregon Paid Family Medical Leave Insurance
The state has developed a new program allowing workers in Oregon to take paid time off to handle events impacting their families, health, and safety. The following is a quick look at Paid Leave Oregon (PLO) and what it means for you.
Oregon’s pre-Covid legislation on Paid Leave in the state is fully implemented for all Oregon employers as of January 1, 2023. It is important that ORLA members have their plan in place for adhering to the state law. It also makes sense to communicate with your team members on staff in advance of January when payroll taxes start being deducted from paychecks to start building up the state fund that will be utilized to payout benefits starting in September.
ORLA developed a handy one-page summary on Paid Leave in Oregon available at Oregonrla.org. Industry members should be aware there are options to Paid Leave Oregon and the subsequent January payroll tax deductions.
ORLA has a long-standing partnership with Garth T. Rouse & Associates. The company is set up to help ORLA members navigate private plan options to comply with Paid Leave Oregon law while staying out of the state-run program. As a reminder, employers interested in an equivalent plan had to submit a declaration of intent or equivalent plan application by November 30, 2022, to be exempt from state plan contributions beginning January 1, 2023.
As an employer, it makes sense to weigh options in 2023 and consider private equivalent plans. The big difference is employees wouldn’t be seeing payroll tax deductions on their paychecks until September if employers opt for a private plan and get it approved
POLISH LEADERSHIP SKILLS AND CONTRIBUTE TO OREGON'S LASTING SUCCESS
YEAR-LONG PROGRAM
The Oregon Tourism Leadership Academy is designed for Oregon’s hospitality industry professionals with executive potential. Recruits will go beyond the walls of their businesses to gain in-depth experiences and knowledge that will elevate their passion and excitement for our state’s extraordinary offerings.
The program consists of four excursions to be completed in the year, with each excursion scheduled over three days.
BENEFITS OF OTLA PARTICIPATION:
The continued development of leadership skills, including creative team problemsolving, listening and communication skills, emotional intelligence and the development of deeper self-awareness.
Lifelong relationships and networking pathways through connection with participants, mentors and presenters.
Connections with state and national resources and networks through experiential learning in a variety of Oregon contexts. Participants who complete the courses and meet the standards set will be certified. This certification assures industry and consumers that the assessed individual has met or exceeded the standards set by the Oregon Restaurant & Lodging Association (ORLA), Travel Oregon, Oregon Destination Association and a network of specialized facilitators.
LEARN MORE ABOUT APPLYING
Visit OregonRLA.org/OTLA and be sure to visit the "Before You Apply" section for FAQs and criteria.
OregonRLA.org/OTLA
by the state. With workforce shortage issues continuing in the hospitality industry, employers may be at a disadvantage with a wage deduction coming out of employee’s paychecks when others in the industry are setting up private plans and avoiding the issue for another nine months.
There’s also no guarantee the one percent payroll tax being paid in to build up the state fund will be enough money to handle all the requested payouts from claimants starting in September 2023. If that proves true, the payroll tax may have to increase in 2024 and beyond depending on how many Oregonians are pulling from the Paid Leave Fund for benefits. Employers can always start with the state fund in 2023 and make a plan to look at alternatives next year (the wait and see approach) or it might make sense to look at a private plan now and watch it closely outside the system and avoid those nine months of payroll taxes.
Whatever your trajectory, there will be some important decisions to make. Please utilize Garth Rouse and the expertise of his professional staff if they can be of assistance on Paid Leave Oregon and available private plan alternatives. Garth and his team can be reached at 800.982.2012. Finally, there have been additional questions around PFMLI, one of which has to do with counting seasonal employees. Here’s what we learned from the Oregon Employment Department:
Currently, administrative rule (OAR 471-070-3160), determines employer size by using an employer’s Oregon quarterly payroll report to count employees to determine the employer size, including full-time, part-time, seasonal, and temporary employees, as well as out-of-state workers. The employer would add the quarterly count for each of the last four quarterly reports and divide by four to determine if they are a large or small employer (less than 25 employees). However, the Paid Leave
Oregon program is currently reevaluating how employer size is determined with the Advisory Committee so the calculation may change in the future.
As always, ORLA’s Regional Representatives are here for you should you have questions or are looking for more information on any number of issues impacting Oregon hospitality businesses. Visit OregonRLA.org/staff to contact us. ORLA
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