Oregon Paid Family & Medical Leave (OR PFML)

Yes. While the OR PFML law creates certain paid benefits for leave because of an employee’s own health condition or for covered caregiving reasons, the OR PFML law is not intended to replace benefits provided by employers through Short-Term Disability (STD) plans and programs. It is important to know that cancelling STD benefits could leave your employees with limited income protection under the following circumstances:

1. Benefit amount for higher-income employees. The OR PFML max weekly benefit may be insufficient for high-income earners who require greater income replacement.
2. Consequences of combined 12 weeks of family and medical leave.  If an employee takes 12 weeks of family leave in a 12-month period, in most circumstances, the employee may be left without income replacement for their own serious health condition in the same timeframe.
3. Impact of intermittent leave. OR PFML can be taken intermittently so an employee may substantially reduce and/or exhaust their benefits and be left without income replacement protection if they become seriously and continuously disabled thereafter.
4. Short-Term Disability may offer additional features and benefits. STD policies may include employee-facing features that improve their experience: survivor benefits, and most importantly, return-to-work and vocational rehabilitation programs. Employees can still access these features even if they are approved for both OR PFML and STD.

Employers can apply for an equivalent plan via the state's online portal, Frances Online. An employer may apply for approval of a self-administered or fully insured equivalent plan.

An employer seeking approval for a fully insured plan will be required to submit an application to Paid Leave Oregon accompanied by an issued policy (or confirmation of insurance form), and an application fee. Applications for a self-insured plan must be accompanied by proof of solvency, a Summary Plan Description and the application fee.

Employers planning to offer an Equivalent Plan (including self-insurance models) are not exempt from paying premiums until Paid Leave Oregon has reviewed and approved the equivalent plan documentation. Employers are responsible for continuing to remit employer or employee contributions to the state plan until the effective date of their approved Equivalent Plan application. 

Employers offering Equivalent Plans must continue to meet reporting, notice, records, job protection and benefits continuation requirements.

Equivalent Plans must remain in effect for a minimum of one year. Employers will be required to reapply annually for the first three years, 30 days prior to the approval of an equivalent plan plus pay the required fee. Employers will also be required to reapply and pay the required fee if substantive changes are made to their approved plan.