A report from KPTV in Portland, Oregon, says: Workers in Oregon will soon see a new deduction in their paychecks to cover the cost of paid family and medical leave, as the state has just passed a law mandating this benefit.
The state of Oregon has implemented paid leave as of January 1, but it does not expect to have the money to pay for it until September.
Oregon became the ninth state to provide paid family and medical leave in 2019 when the law was enacted. As of right now, around a dozen states provide paid leave of up to twelve weeks.
In addition to providing up to 12 weeks of paid leave for new parents, Oregon’s statute covers employees who require time off for illness or to care for a sick family member.
Low-paid workers can receive a full income replacement under the plan, and victims of domestic violence and sexual assault are also covered.
In 2019, Oregon’s Governor Kate Brown stressed the significance of the new law.
It was for the mother, whose 7-year-old son needed emergency brain surgery. Brown said, “We did it for many Oregonians who are caring for older family members and, often, caring for young children and working outside the home, and she was fired when she called in to say she couldn’t come in that day.
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Legal protections extend to temporary and seasonal workers as well as those who are in the country illegally.
The rate of contribution is 1% of the total payroll. This applies to companies that have 25 or more workers.
The paid leave will be funded by contributions from most employees and major businesses. The 1% contribution rate will be split 60%-40% between employees and major businesses.
If your company has fewer than 25 workers, you won’t have to worry about making any payments. The money will be placed in a trust fund that will be used to pay for employees’ paid leave benefits.
As on September 3, 2023, employees in Oregon will be eligible for paid leave.