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The Paid Leave Oregon program, created in 2019, is funded by both employer and employee contributions. Effective January 1, 2023, employers with 25 or more employees will begin paying at least 40% of contributions and withholding up to 60% of contributions from employee wages, up to a maximum 1.0% combined contribution rate on employee wages of up to $132,900 (indexed annually for inflation). The OED will annually determine both the contribution rate and taxable wage limit.

Employers with fewer than 25 employees are exempt from paying the employer contribution but are still required to collect and report employee contributions. Also, if employers with fewer than 25 employees elect to pay the 40% employer portion, they may be eligible for a state grant to assist with additional costs due to qualified paid leave paid to an employee. Self-employed individuals may opt-in to the program voluntarily.

Source: Geffen-Mesher