Oregon Law Will Reduce Leave Stacking, Effective July 1

Oregon Gov. Tina Kotek signed into law SB 1515, which amends the Oregon Family Leave Act (OFLA) and the Paid Leave Oregon (PLO) program.

The amended legislation, which aims to reduce leave stacking and better align the two overlapping leave laws, will take effect on July 1, 2024.

Multiple leave laws

Last year, Oregan’s PLO program went into effect. HR pros then had to manage multiple leave entitlements under several laws, making compliance pretty complicated.

On Sept. 3, 2023, benefits became available through the newly established PLO program. Under it, eligible employees could apply for benefits to take 12 weeks of paid leave for certain qualifying situations, such as the birth of a child.

In addition, the OFLA was still available to workers. In 1995, Oregon enacted OFLA – essentially the state version of the Family and Medical Leave Act (FMLA). OFLA provides eligible employees with unpaid, job-protected leave – up to 12 weeks for a qualifying situation, like the birth of a child.

When PLO was passed, an employee could exhaust their leave under OFLA and/or the FMLA and then take 12 weeks of paid time off under the PLO program, essentially stacking their leaves and taking six – or more – months off for the same qualifying condition.

OFLA amendment curbs leave stacking under state laws

The good news for employers: SB 1515 amends OFLA, reducing employees’ ability to stack their OFLA and PLO leaves.

To be clear, the amended law does not strictly prohibit leave stacking. Instead, it significantly decreases qualifying conditions for covered OFLA leave, reducing overlapping coverage under OFLA and PLO.

Under the amended law, OFLA covers only the following qualifying situations:  

1. Sick child leave: To care for a child with an illness, injury or condition that requires home care but is not serious. May also be used to provide care for a child when a school or childcare center is closed due to a public health emergency.

2. Bereavement leave: Up to two weeks to deal with the death of a family member, including 1) attending the funeral or alternative to a funeral; 2) making funeral or memorial arrangements; and 3) grieving the death of a family member. Bereavement leave is limited to two weeks per incident and cannot exceed four weeks in a one-year period.
3. Pregnancy disability leave: Can be taken before birth for prenatal care or after childbirth for recovery.

PLO amendment allows ‘topping off’ benefits

In addition, SB 1515 also amends PLO, allowing employees to “top off” their PLO benefits by using accrued paid time off (PTO) to replace 100% of their wages.

As of right now, wage replacement benefits are paid on a sliding scale, based on income. Currently, the minimum weekly benefit is $63.40, and the maximum weekly benefit is $1,523.63.

Under the existing framework, the Oregon Employment Department (OED) administers the PLO program and does not share info with employers about benefits.

However, the amended law requires the OED to work with the Oregon Bureau of Labor and Industries (BOLI) to create a process to share this info with companies so employers will know how much accrued PTO to use to “top off” employees’ wages.

Industry-specific predictive scheduling amendment

SB 1515 also addresses a conflict with the state’s predictive scheduling law encountered by large employers (at least 500 employees worldwide) in the retail, hospitality, or food services industry.

Affected employers are required to set schedules for employees 14 days in advance. This includes employees who fill in for colleagues on protected leave.

The amended law clarifies that employers will not be subject to a penalty if an employee’s schedule must be changed to accommodate another employee’s taking of or return from leave, if the employee fails to give 14 days’ advance notice of the need for leave, or if the employee returns without giving 14 days’ advance notice.