Oregon Revised Statutes

Chapter 657B — Family and Medical Leave Insurance

61 sections

657B.005 Legislative findings

The Legislative Assembly finds that: Employees experience a variety of caregiving obligations that interfere with work time. It is in the public interest to create a family and medical leave insurance program to provide to employees and certain other individuals compensated time off from work to care for and bond with a child during the first year after th…

657B.010 Definitions

As used in this chapter: “Alternate base year” means the last four completed calendar quarters preceding the benefit year. “Average weekly wage” means the amount calculated by the Employment Department as the state average weekly covered wage under ORS 657.150 (4)(e) as determined not more than once per year. “Base year” means the first four of the last f…

657B.015 Benefit eligibility

Family and medical leave insurance benefits are available to any of the following during a period of family leave, medical leave or safe leave: An eligible employee who: During the base year or alternate base year, as applicable, contributes to the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430 in accordance with ORS 657B.150; …

657B.020 Qualifying purposes for benefits; duration of benefits

A covered individual may qualify for up to 12 weeks of family and medical leave insurance benefits per benefit year for leave taken for any of the following purposes, in any combination: Family leave; Medical leave; or Safe leave. In addition to the leave available under subsection (1) of this section, a covered individual may qualify for up to two addit…

657B.023 Determining family member by reason of affinity

In order to determine whether an individual qualifies as a family member by reason of affinity, as that term is used in ORS 657B.010, consideration shall be given to whether there exists a significant personal bond attributed to factors, established by the Director of the Employment Department by rule, that, when examined in total, resemble a family relation…

657B.025 Coordination of leave

Any family leave or medical leave taken under this chapter must be taken concurrently with any leave taken by an eligible employee under the federal Family and Medical Leave Act of 1993 (P.L. 103-3) for the same purposes.

657B.030 Use of other paid leave benefits in addition to paid family and medical leave insurance benefits

Family and medical leave insurance benefits are in addition to any paid sick time under ORS 653.606, vacation leave or other paid leave earned by an employee. Except as otherwise provided in paragraph (b) of this subsection, an employee is entitled to use any accrued paid sick leave, accrued paid vacation leave or any other paid leave that is offered by the…

657B.040 Notice to employers prior to commencing leave; exceptions

Except as provided in subsection (2) of this section, an employer may require an eligible employee to give the employer written notice at least 30 days before commencing a period of family leave, medical leave or safe leave. The employer may require the employee to include in the notice an explanation of the need for the leave. An eligible employee may comm…

657B.050 Amount of benefits; limits on weekly benefit amount; extent to which benefits are payable; exemptions from garnishment

The Director of the Employment Department shall set the weekly benefit amount of family and medical leave insurance benefits that a covered individual qualifies for as follows: If the eligible employee’s average weekly wage is equal to or less than 65 percent of the average weekly wage, the employee’s weekly benefit amount shall be 100 percent of the employ…

657B.060 Job protection; benefits; discrimination prohibited

Except as provided in paragraph (b) of this subsection, after returning to work after a period of family leave, medical leave or safe leave, an eligible employee is entitled to be restored to the position of employment held by the employee when the leave commenced, if that position still exists, without regard to whether the employer filled the position with…

657B.070 Denying leave; discrimination and retaliation prohibited; remedies for violation; exception; statute of limitations tolled during appeal

It is an unlawful employment practice for an employer to: Violate ORS 657B.060. Deny leave or interfere with any other right to which an eligible employee is entitled under this chapter. Retaliate or in any way discriminate against an employee with respect to hire or tenure or any other term or condition of employment because the employee has inquired abo…

657B.080 False statements or failure to report material fact by employer

It is unlawful for an employer to willfully make or cause to be made false statements or to willfully fail to report a material fact regarding the claim of an employee of the employer or regarding an employee’s eligibility for benefits under this chapter. (Claims Administration)

657B.090 Claim for benefits; leave increment requirements; authorized agents; rules

Except as otherwise provided under this section, family and medical leave insurance benefits are not payable to a covered individual unless: The individual submits a claim to the Director of the Employment Department in the manner determined by the director by rule; and The director has made a decision to allow or deny the claim under ORS 657B.100. If the…

657B.100 Allowing or denying claim; notice of denial; decision final unless hearing requested

The Director of the Employment Department shall promptly examine each claim for family and medical leave insurance benefits and, on the basis of the facts available, make a decision to allow or deny the claim. Information furnished in the claim, as prescribed by the director by rule, must be accompanied by a written or electronically signed statement that su…

657B.110 Continuous jurisdiction of director; reconsideration of previous decisions

The Director of the Employment Department, upon motion of the director or upon application of a covered individual, may at any time reconsider any final decision under this chapter. Reconsideration may occur when there is evidence of: Errors of computation; Clerical errors; Misinformation provided to a party by the Employment Department; Facts not previo…

657B.120 [2019 c.700 §15; 2023 c.120 §9; renumbered 657B.332 in 2023]

ELECTIVE COVERAGE

657B.130 Elective coverage for certain individuals; notice of election; termination of coverage; rules for collection of contributions and benefit overpayments

Except as provided in subsections (2) and (3) of this section, a self-employed individual may elect to be covered under this chapter for a period of not less than three years. The self-employed individual must file a notice of election in writing with the Director of the Employment Department and contribute to the Paid Family and Medical Leave Insurance Fund…

657B.150 Contributions; director to set rates; reporting requirements for employers; rules for successor in interest

Except as otherwise provided in subsections (3) and (4) of this section and ORS 657B.210 (4), all employers and employees shall contribute to the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430. Contributions shall be paid by employers and employees as a percentage of a total rate determined by the Director of the Employment Depa…

657B.175 Effect of place of performance of service

An employee’s wages shall be used to make determinations under this chapter if the wages are earned for service that is: Localized within this state; or Not localized within any state, but some of the service is performed within this state and: The base of operations is in this state or, if there is no base of operations, the place from which the service …

657B.180 Unlawful practices of employer

An employer may not willfully refuse or fail to pay a contribution to the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430 or to furnish any report, audit or information duly required by the Director of the Employment Department under this chapter. An employer may not make a deduction from the wages of an employee to pay any porti…

657B.190 Employer’s security for payment of contributions

If, upon satisfactory evidence, the Director of the Employment Department finds it necessary for the protection of the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430, the director may require any employer subject to this chapter, other than the State of Oregon, and every state officer, board, commission, department, institution, …

657B.200 Employer assistance grants; eligibility; rules

Except as provided in subsection (2) of this section, employers that employ fewer than 25 employees and that make the required contributions under ORS 657B.150 may apply to the Employment Department to receive one of the following grants: If the employer hires a temporary worker to replace an eligible employee who takes family leave, medical leave or safe l…

657B.210 Equivalent plans, generally; rules; fee

An employer may apply to the Director of the Employment Department for approval of an employer-offered benefit plan that provides family and medical leave insurance benefits to the employer’s employees. An employer that seeks approval of a plan shall submit an application to the director in the form and manner prescribed by the director by rule, accompanied…

657B.220 Director review of benefits provided under equivalent plan; termination of noncompliant plan

At such times as may be established by the Director of the Employment Department by rule, the director shall review the family and medical leave insurance benefits provided under a plan that has been approved under ORS 657B.210. Based on the review, the director shall determine whether the approved plan provides benefits that are equal to or greater than th…

657B.230 Application for reapproval of plan

Except as provided in ORS 657B.240, an employer shall resubmit an application to the Director of the Employment Department for reapproval of a plan that was approved under ORS 657B.210. An employer shall apply for reapproval once a year for a three-year period following the date on which the director first approved the plan. Unless an employer has made chan…

657B.240 Withdrawal from plan; handling of employee deductions

An employer may elect to withdraw from a plan that was approved under ORS 657B.210 in the manner specified by the Director of the Employment Department by rule provided that the plan has been in effect for at least one year. If an employer elects to withdraw from an approved plan, any deductions made from the wages of an employee that remain in possession o…

657B.250 Portability of benefits and retention of eligibility status between jobs

An employee who is a covered individual under the program established under ORS 657B.340 retains such status until the employee qualifies for coverage under a plan approved under ORS 657B.210. An employee who has ceased to be covered by a plan approved under ORS 657B.210, is, if otherwise eligible, automatically qualified to receive family and medical leave…

657B.260 Successor in interest required to continue offering approved plan to eligible employees until withdrawal of plan; request for withdrawal

Except as provided in subsection (2) of this section, a plan that has been approved under ORS 657B.210 and that is in effect at the time a successor in interest acquires the organization, trade or business, or substantially all assets of the organization, trade or business or a distinct and severable portion of the organization, trade or business, and contin…

657B.280 Delinquent contributions and improper benefit payments as liens on real or personal property; foreclosure

This section applies to: An employer that fails to remit to the Department of Revenue any amount of contributions due under ORS 657B.150; An individual liable to repay any amount of benefits paid under this chapter to which the individual was not entitled; A person liable under ORS 657B.330 for amounts due under this chapter; A self-employed individual o…

657B.290 Filing of lien statement or warrant

Any warrant attaching the lien under ORS 657B.280 may also be filed in the office of the Secretary of State. Filing in the office of the Secretary of State has no effect until a copy of the statement of lien or the warrant has been recorded with the county clerk. When a copy of the statement of lien or the warrant is filed with the Secretary of State in com…

657B.300 Alternative remedies for collection of amounts liable to be repaid; warrants; execution by sheriff

In any case in which the Director of the Employment Department may bring a civil action for the collection of amounts liable to be repaid under ORS 657B.280, interest on those amounts or penalties, the director may instead issue a warrant for the amount liable to be repaid with the added interest, penalties, collection charges and the sheriff’s costs of exec…

657B.310 Release, compromise or satisfaction of lien

The Director of the Employment Department may release, compromise or satisfy any lien provided for in ORS 657B.280 and 657B.290 by filing a notice of release or satisfaction with the county clerk of the county in which the notice of lien claim was filed. Upon filing of the notice under this subsection, the property against which the lien is claimed shall be…

657B.320 Delinquent contributions or grant repayments; interest; civil penalties; collection by civil action; settlement

If an employer defaults with respect to any amount of contributions required to be made by the employer to the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430 or with respect to the repayment of any grant moneys awarded to the employer under ORS 657B.200 for which the employer was not eligible, the unpaid amount, together with int…

657B.330 Liability of certain officers, members, partners or employees for amounts in default

This section applies to an individual who is one or more of the following: An officer or employee of a corporation; A member or employee of a limited liability company; or A partner in or employee of a limited liability partnership. In the case of default by an employer subject to ORS 657B.320, an individual described in subsection (1) of this section wh…

657B.332 False statements or failure to report material fact; recovery of erroneous benefit payments due to misrepresentation or nondisclosure; notice requirements; penalties; rules

An employer may not willfully make or cause to be made false statements or willfully fail to report a material fact regarding the claim of an eligible employee or regarding an employee’s eligibility for family and medical leave insurance benefits under this chapter. The Director of the Employment Department may assess a civil penalty in an amount not to exc…

657B.334 Ineligibility for benefits upon conviction of fraud in obtaining benefits

If a person is convicted by a court of competent jurisdiction of willfully making a false statement or misrepresentation, or willfully failing to report a material fact, to obtain any benefits under this chapter, in addition to any penalties imposed by the court, the person shall: Be ineligible for benefits based upon wages paid to the person in the calenda…

657B.335 Deduction of benefits paid in error not due to recipient fault; director discretion; civil action by director to recover benefits paid in error

If the Director of the Employment Department decides that a covered individual has been paid benefits to which the covered individual is not entitled because of an error not due to the covered individual providing a false statement or misrepresentation of a material fact or not disclosing a material fact, or because an initial decision to pay benefits is sub…

657B.336 Waiver of recovery of overpaid benefits

The Director of the Employment Department shall waive recovery of overpaid benefits under ORS 657B.335 if the director finds that the benefits are recoverable due to a change in state law, the application of which has caused the disqualification of benefits previously paid. The director may not waive recovery under this section of overpaid benefits that are…

657B.337 Cancellation of unrecoverable benefit payments and amounts of interest or penalties due and unpaid

If any amount paid to a covered individual as benefits, for which the covered individual has been found liable under the provisions of ORS 657B.332 to repay or to have deducted from benefits payable, has been neither repaid nor deducted within a period of five years following the date the decision establishing the overpayment became final, and is equal to or…

657B.338 Request for offset of moneys owed to debtor by Department of Revenue against certain amounts owed by debtor; fees

The Director of the Employment Department may pay a fee charged by the Department of Revenue pursuant to ORS 293.250 for processing a request to offset against liquidated state debt a state tax refund owed to the debtor. The net amount received from the Department of Revenue after deduction of fees charged under subsection (1) of this section shall be offse…

657B.339 Authority of director to compromise de minimis program debts and interest and penalties, retain de minimis overpayments; uncollectible accounts; recordkeeping

As used in this section, “grant repayment” means a repayment of grant moneys awarded to an employer under ORS 657B.200 for which the employer was not eligible. When in the judgment of the Director of the Employment Department the best interests of the Employment Department are served, the director may: Waive, reduce or compromise any balance of $10 or less…

657B.340 Family and medical leave insurance program; administration of program; rules; state agency assistance

The Director of the Employment Department shall establish a family and medical leave insurance program to provide family and medical leave insurance benefits to a covered individual as specified in this chapter. Not later than September 1, 2022, the director shall adopt rules that are necessary to establish the program under subsection (1) of this section, …

657B.350 Third party administrator; agreements; oversight by director

The Director of the Employment Department may enter into an agreement with a third party to implement this chapter and to serve as the administrator of the program established under ORS 657B.340. The director may enter into such an agreement only on a competitive bid basis. Every service provided by a third party administrator pursuant to an agreement enter…

657B.355 Bureau of Labor and Industries to have oversight for provisions relating to job retention, retaliation and discrimination; rules

Notwithstanding any other provision under this chapter, the Bureau of Labor and Industries is responsible for administrative and regulatory oversight regarding the requirements under ORS 657B.060, and the provisions of ORS 657B.070 relating to retaliation and discrimination, and shall adopt any rules necessary and proper for the administration of those secti…

657B.360 Determining number of employees employed by employer; replacement workers; rules

Subject to subsection (2) of this section, for purposes of ORS 657B.060 and 657B.150, the Director of the Employment Department shall establish by rule a method to determine on an annual basis the number of employees employed by an employer. The method shall require that the determination be based on the average number of employees employed by the employer i…

657B.370 Computation and assessment of employer contributions and interest; jeopardy assessments; application for hearing

If an employer files a report for the purpose of determining the amount of contributions due under ORS 657B.150 but fails to pay contributions or interest, the Director of the Employment Department may assess the amount of contributions or interest due on the basis of the information submitted and shall give written notice of the assessment to the employer b…

657B.380 Advisory committee; membership; terms

The Director of the Employment Department shall establish an advisory committee to review issues related to the implementation and administration of the family and medical leave insurance program established under ORS 657B.340 and rulemaking related to the program. The advisory committee shall consist of nine members appointed by the director as follows: A…

657B.390 Employment records; inspection

All employers shall maintain payroll records, including account records that document employee contributions and expenses, and employment records that reflect the total hours worked by all employees and the amount of leave taken by employees under this chapter for the current calendar year and the three prior calendar years. The Director of the Employment D…

657B.400 Confidentiality of information; disclosures of information by Employment Department; rules

Except as provided in subsections (2) to (7) and (10) of this section, all information in the records of the Employment Department or a third party administrator pertaining to the administration of this chapter: Is confidential and for the exclusive use and information of the Director of the Employment Department in administering this chapter; May not be u…

657B.410 Appeals process, generally; process subject to judicial review; representation in proceeding

The Director of the Employment Department shall establish a process by which: An employer may request a hearing to obtain review of a final decision of the director regarding any of the following: Approval or denial of an employer’s application for approval of a plan under ORS 657B.210; The assessment of penalties under ORS 657B.925; or A determination m…

657B.420 Appeals of decisions under equivalent employer plan; rules

The Director of the Employment Department shall establish by rule a method to resolve disputes between employers and employees concerning coverage and benefits provided under a plan approved under ORS 657B.210 that may, as appropriate, employ the appeals process established under ORS 657B.410 to provide employers and employees an opportunity to obtain review…

657B.425 Dismissal of request or application for hearing

When a request for a hearing is made under this chapter, the Director of the Employment Department may dismiss the request or application for hearing if: The request for hearing is withdrawn by the requesting party; The matter is resolved by reversal or amendment of the decision that is the subject of the hearing request; The request for hearing is filed …

657B.430 Paid Family and Medical Leave Insurance Fund

The Paid Family and Medical Leave Insurance Fund is established in the State Treasury, separate and distinct from the General Fund. The Paid Family and Medical Leave Insurance Fund is declared to be a trust fund. The fund consists of moneys deposited in the fund from contributions made under ORS 657B.150 and from penalties, fees, revenues and all other amou…

657B.440 Employer required to provide notice advising employees of rights and duties

An employer shall provide written notice to each employee of the duties and rights of an eligible employee under this chapter in accordance with rules adopted by the Director of the Employment Department. At a minimum, the notice must advise the employee of the following: The right of an eligible employee to claim and receive family and medical leave insura…

657B.460 Construction of chapter

This chapter establishes minimum requirements pertaining to family leave, medical leave and safe leave and may not be construed to preempt, limit or otherwise diminish the applicability of any employer policy, standard or collective bargaining agreement that provides for greater use of family leave, medical leave or safe leave under state or federal law. [20…

657B.470 Preemption of local laws relating to paid family and medical leave

Except as provided in ORS 657B.210, ORS chapter 657B supersedes and preempts any rule, regulation, code or ordinance of any unit of a local government, as defined in ORS 174.116, relating to paid family and medical leave. Note: 657B.470 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 657B or any series the…

657B.480 State agency assistance; intergovernmental agreements

The Director of the Employment Department may enter into intergovernmental agreements under ORS chapter 190 with the Department of Revenue, the Department of Consumer and Business Services, the Bureau of Labor and Industries and any other agency to provide outreach, technical assistance or compliance services related to this chapter on behalf of the director…

657B.900 Criminal penalties

In addition to any penalties otherwise prescribed under this chapter, violation of any provision of this chapter is a Class A misdemeanor. If an offending employer is a corporation, the president, secretary and the treasurer, or officers exercising corresponding functions, are subject to the penalties in this section in respect to any duties of which they r…

657B.910 Penalty when employer fails to file contribution reports or pay contributions when due; notice of failure; waiver

On or before June 30 of each year, the Director of the Employment Department shall send a written notice to each employer that has failed to file all reports as required by the director or to pay all contributions due under ORS 657B.150, warning the employer about the penalty provided in subsection (2) of this section. If, prior to September 1 of each year,…

657B.920 Penalty when employer fails to file reports; amount of penalty; request for deletion of penalty

If an employer fails to file a combined quarterly report of wages earned and contributions paid under ORS 657B.150 by the 10th day of the second month following the end of the calendar quarter, the Director of the Employment Department, for the first such failure, shall send to the employer at the employer’s last known address a written notice warning the em…

657B.925 Penalties for employer violation of requirements applicable to employer-offered benefit plans

If the Director of the Employment Department determines that an employer that offers benefits pursuant to a plan approved under ORS 657B.210 has at any time violated any requirements applicable to plans approved under ORS 657B.210, the director may assess the following penalties against the employer: $1,000 for the first violation. $2,000 for the second an…