Oregon Sick Leave Law

The final BOLI rules for Oregon’s new Sick Leave Law have been published. Starting January 1, 2016 the law requires employers in Oregon to allow employees to accrue up to 40 hours of sick leave a year. Employers with at least 10 employees (this includes full-time, part-time, temporary, and seasonal workers) in Oregon are required to offer paid sick leave. Employers with fewer than 10 employees can offer unpaid sick leave. If your business is located within the City of Portland the employee threshold for paid or unpaid leave is 6 employees.

Sick

Options for providing the 40 hours of sick leave:

  • Accrual of Sick Leave
    • Employees begin accruing sick leave on day one at the rate of 1 hour for every 30 hours worked for 1 1/3 hours for every 40 hours worked.
    • Employers are required to allow employees to accrue up to 40 hours a year.
    • If using the accrual method employers are required to allow employees to carry up to 40 hours of unused sick leave to a subsequent year.
    • For time that is rolled into the next year employers can cap accrual at 80 hours total.
  • Front Load Sick Leave
    • Instead of accrual employers may front load 40 hours of sick leave the first day of the year or when the employee is eligible on day 91.

When can sick leave be used?

  • No advance notice is required for sick leave and it can be used in hour increments and employers cannot require that an employee make up any time protected sick leave time missed. Reasons for sick leave use:
    • Employee’s mental for physical illness, injury or health condition, need for medical diagnosis, care or treatment of a mental or physical illness, injury or health condition, or need for preventive care.
    • For care of a family member with any of the conditions listed in the above item. The definition of family member is very inclusive.
    • Any other purposes for which leave is permitted under the Oregon Family Leave Act, such as care for an infant or newly adopted child, or to deal with the death of a family member.
    • To address domestic violence.
    • To donate accrued sick leave to another employee is the employer allows.
    • In the event of a public health emergency.

What do you need to do before January 1, 2016?

  • Review all current time off policies for compliance with the new law. If you currently offer a sick leave policy or Paid Time Off (PTO) policy please review to ensure it is in compliance with the new law.
    • If you are going to combine sick leave with an existing PTO policy changes will need to be made to make it compliant with the Sick Leave Law. It needs to allow at least the same accrual rate and time off needs to be allowed for all reasons under the Oregon Sick Leave Law.
  • Send all employees the Sick Leave Notification before the first payroll in January 2016.
  • Define your tracking system for Sick Leave accrual and use. Employees are required to receive at least quarterly statements showing this information. If this information is on paystubs no additional statement is required.

If you have any questions about the Oregon Sick Leave Law, please contact our office.

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