Employers with Oregon employees may now file equivalent paid leave plans
September 12, 2022
Come January 1, 2023, employees and employers will begin paying into the new paid leave program. If employers already offer paid leave to employees or are thinking about doing so, they may apply for their plan to be an equivalent one. The state agency Paid Leave Oregon is now accepting equivalent plan applications. Employers may submit their plans through https://www.oregon.gov/employ/frances/Pages/default.aspx.
An equivalent plan is a plan the Oregon Employment Department approves, and one that provides benefits that are equal to or greater than the benefits Paid Leave Oregon provides. An equivalent plan must:
- Cover all employees who have been continuously employed with the employer for at least 30 calendar days.
- Ensure employee contributions are not greater than what the state plan would charge.
- Provide benefits that are equal to or greater than the benefits the state plan offers, including:
- Allowing leave for family, medical, and safety reasons.
- Providing up to 12 weeks of paid leave per year (plus an additional two weeks for pregnancy-related medical leave).
- Allowing employees to take paid leave one day at a time or for longer periods of time.
- Having no additional conditions or restrictions for employees to use paid leave.
Employers may choose from two types of equivalent plans:
- Employer-administered equivalent plan — The employer assumes all financial risk associated with the benefits and administration of the equivalent plan, whether the plan is administered by the employer or a third-party administrator.
- Fully insured equivalent plan — The employer purchases an insurance policy from an insurance company, and the benefits related to the plan are administered through the insurance policy.
Employers wishing to apply for an equivalent plan will need to gather the following:
- Business Identification Number and Federal Employer Identification Number
- Employer name, address, and contact information
- A copy of one the following:
- Employer-administered equivalent plan or,
- Insurance policy with the insurance product and chosen options
- For employer-administered plans only, proof of solvency by providing either:
- Proof of sufficient assets
- A bond or an irrevocable letter of credit with the Oregon Employment Department named as the payee or beneficiary, issued by an insured institution
- For fully insured plans only, information about the insurance policy and carrier, including:
- Business and contact information for the insurance carrier
- The date the policy begins and ends
- $250 application fee
Employers must reapply for approval every year for three years or if the plan changes.
To be exempt from the required quarterly contribution payments, employers must submit their equivalent plan application as follows:
- By Nov. 30, 2022, to be exempt from paying contributions beginning with the first quarter that starts Jan. 1, 2023.
- By Feb. 28, 2023, to be exempt from paying contributions beginning with the second quarter that starts April 1, 2023.
- By May 31, 2023, to be exempt from paying contributions beginning with the third quarter that starts July 1, 2023.
On September 3, 2023, employees may start applying for benefits.
September 12, 2022
AuthorDarlene Clabault
TypeIndustry News
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Related TopicsFamily and Medical Leave Act (FMLA)
Leave
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