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The Oregon Sick Leave Law is one of the nation’s most comprehensive and progressive. With this law, employees in many sectors have been given new rights on how they can take time off from work for their own health. In some cases, workers are allowed to retain up to three days of sick leave per year without risking a paycheck penalty or firing- just as if they were going through standard FMLA leave
Oregon’s sick leave legislation, enacted in response to Senate Bill 454, requires five days of paid sick leave for full-time employees in firms with ten or more employees. These rules have been supplemented by more current COVID-19 guidelines. This guide also covers Portland’s local leave regulations, which mandate that businesses with six or more workers follow Senate Bill 454 guidelines.
The Coronavirus Response Act for Families First (FFCRA)
COVID-19 virus has changed in terms of how companies help their workers who are sick with the coronavirus sickness or who are caring for a family member who is unwell. For specific reasons connected to COVID-19, the Families First Coronavirus Response Act (FFCRA or Act) mandates some companies to give paid sick leave and increased family and medical leave to their workers. These rules will be in effect from April 1, 2020, through December 31, 2020.
How Paid Sick Leave in Oregon Works
Covered sick leave is time that an employee may take away from work to attend to their or their family’s medical requirements, and it is paid by employers at the employee’s usual pay rate where COVID-19 does not define sick leave regulations for employers. Illnesses, doctor’s visits, and family medical difficulties are examples of this. It also covers time spent due to conditions including domestic abuse or violence.
Despite the fact that it is not required by federal law, Oregon has enacted Senate Bill 454, which mandates five days of paid sick leave. Federal personnel is exempt from the Oregon sick leave statute, and union employees may be exempt as well (depending on what their collective bargaining agreement states).
The following are the requirements of Oregon’s paid sick leave laws:
- Employers with ten or more workers must give full-time employees 40 hours of paid sick leave per year.
- Employers with nine or fewer workers must give up to 40 hours of unpaid sick leave per employee.
- At least once a quarter, employees must be informed of their sick time balances.
- On the first day of work, an employee starts to accumulate sick leave.
- After 90 days of work in Oregon, employees may utilize their earned sick leave.
- Employees should be compensated at their usual rate of pay while on sick leave.
- The rate of sick leave compensation is dependent on the employee’s typical earnings if they are paid by commission or piecework (for example, an assembly line worker who is paid per unit built) (we recommend averaging over at least 90 days)
- Employees may seek sick leave and compensated time off in one-hour increments.
- Employees may carry over up to 40 hours of sick leave each year.
- Employers may set a limit of 80 hours of sick leave each year.
- Employees who have been rehired have the right to have their previous sick leave balances reinstated.
- Sick leave records (including accruals and payments) must be kept for a period of four years.
- The sick leave policy must be communicated to the employee in his or her native tongue.
Employers with six or more workers must provide paid sick leave, which is somewhat tighter than the state’s standards. Visit the Oregon Paid Sick Leave page for more information on Portland’s sick leave standards, which covers both Portland and state requirements for paid sick leave.
The Differences Between Oregon and Federal Sick Leave Laws
There are numerous methods for calculating sick leave, and understanding how to do so is half the fight. Although there is no requirement that sick leave is paid under federal law, there are labor statutes, such as the Fair Labor Standards Act (FLSA), that govern how sick leave should be calculated if it is paid. Exempt workers (those who are normally salaried and do not get overtime pay) should not be asked to take sick leave in fewer than full-day increments, according to HR best practices (to avoid undermining their exempt status).
Sick Leave Laws in Oregon vs. Federal Laws
While the Department of Labor does not mandate paid sick leave and so gives little specifics on how to set up a sick leave policy, Oregon’s website includes guidelines, posters, and seminars to assist companies to comply with the Oregon sick leave statute.
Oregon State and Federal Laws Affecting Paid Sick Leave
In terms of unpaid sick leave, Oregon goes above and beyond what the Family Medical Leave Act (FMLA) requires for firms with 50 full-time workers. All workers in Oregon are entitled to up to 40 hours of unpaid leave.
FMLA is a federal statute that allows workers who work for organizations with more than 50 employees in one location to take unpaid leave. This usually permits an employee who has worked at least 1,250 hours per year to take time off for personal (or family) reasons. Paid sick leave regulations in Oregon may assist employees to make up for missed pay while on family medical leave, such as maternity leave.
Other federal labor rules, such as the Americans with Disabilities Act and the Pregnancy Discrimination Act, may have an influence on how you evaluate and issue sick leave in Oregon. Employees with disabilities, for example, will be allowed to utilize sick leave for medical appointments, while pregnant employees will be able to use sick leave for doctor’s visits.
How to calculate sick leave in Oregon?
Sick leave is computed differently for part-time hourly vs. salaried workers, as well as for commission or piece-work employees. In any case, accruals must begin on the employee’s first day of work. Employers may opt to front-load up to five days of sick leave each year for full-time employees, as long as new recruits are given the time in a lump sum on their first day of work.
Accrual of Sick Leave for Hourly Employees
For hourly employees, the simplest approach to calculate accruals is to provide one hour of sick leave for every 30 hours worked, including both regular and extra hours. This ensures that part-time employees, who may work fewer hours, accumulate sick leave at the same 1:30 rate as full-time employees.
Example of an Hourly Employee
Karen worked 42 hours in the biweekly pay period as a part-time employee. She had 1.4 hours of sick time accumulated.
Sick leave accumulated in the pay period: 42 hours / 30 = 1.4 hours
Accrual of Sick Leave for Salaried Employees
You can estimate accruals for salaried workers based on a 40-hour workweek by assigning each salaried employee 1.33 hours of accumulated sick time for each week worked. This assures that they will take the requisite 40 hours (five days) of paid sick leave in Oregon throughout the course of the year.
Example of a Salaried Employee
Kim (a salaried employee) gets paid every two weeks. Each pay period, she receives 2.66 hours of sick leave.
2.66 hours sick leave each pay period (1.33 hours per week x two weeks)
Sick Leave Accrual Rate on a Piece-Work Basis
It’s preferable to front-load sick leave for full-time employees who are paid on a piece or commission basis at five days each year. When an Oregon worker is paid by the piece, the pay rate for sick leave is calculated by first determining how many pieces the employee was paid for (and at what rate), and then using the average daily rate to pay sick leave. Simply ensure that the employee’s hourly sick leave compensation does not fall below the federal minimum wage.
Example of a piece of work
Over the last 90 days, Cory has constructed 450 units, earning $25 for each unit and averaging 7.5 units every day. $187.50 per day should be paid for the five days of sick leave.
Average of 7.5 units per day x $25 per unit = $187.50 per day
Sick Leave Accrual Rate for Commission Workers
Sick leave rates for commission-based workers are calculated similarly to piece work rates. To make the calculation simple, it’s ideal to provide full-time commission-based staff five days or 40 hours every year as a fixed pay. Calculate average commissions divided by average hours worked to determine an hourly rate to pay for sick leave.
Example of commissioned work:
Over the last 90 days, John made $17,000 in commissions, while salaried staff worked 510 hours. As a result, John’s sick pay should be $31.33 per hour.
$17,000 in commissions paid divided by 510 hours is $31.33 per hour
How to Adhere to Oregon’s Paid Sick Leave Statutes
The most effective approach to comply with Oregon’s paid sick leave rules is to follow the state’s detailed recommendations. It’s worth noting that this site has some quite useful Q&As to help you out. They recommend putting your sick leave policy in an employee handbook, along with other regulations like time and attendance and vacation policies and then placing it in the office or employee break area for everyone to see. Remember that your policy must be accessible in the language that your staff speaks.
Considerations for Oregon’s Sick Leave Policy
Employers in Oregon have two alternatives for handling sick leave: a front-loaded leave balance of five days (40 hours) each year granted at the beginning of the year, or an accumulation. It is simpler to employ front-loading for both paid and unpaid sick leave. If you wish to prevent new recruits or workers early in the calendar year from abusing sick leave hours, accrual may be a preferable option.
Indeed, you may front-load hours for salaried employees while accruing them for hourly employees. Let’s have a look at both possibilities.
Options for Providing Sick Leave Hours: Front-Load vs. Accrual
In this section, you have a few alternatives to choose from, based on what works best for you (as long as you are consistent, case by case). Any unused sick leave balance may be paid out at the end of the year or rolled over provided you supply a front-loaded lump sum payment of 40 hours (five days) at the start of the following year.
Managing employee leave balances and sick time-off requests using a software scheduling platform that also supports payroll processing may save a lot of time.
Increments in Sick Leave Time Off
Employees in Oregon may take paid sick leave for as little as one hour under state law. However, as a best practice, the one-hour restriction should be applied solely to non-exempt hourly workers (or hourly). Because monitoring salaried exempt employees’ actions by the hour might jeopardize their exempt status, salaried exempt employees should be given greater freedom while utilizing paid sick leave.
Sick Leave vs. Paid Time Off
In Oregon, keeping track of sick leave separate from paid time off (PTO) utilized for vacation is a best practice. Some businesses do this by establishing two leave policies: one for sick leave and the other for PTO, which covers vacation and any other reason, such as an employee taking a “mental health day” or time off for a child’s school visit.
PTO and sick leave are not required to be paid out when an employee is terminated in Oregon. PTO, on the other hand, is discretionary, while the sick leave is mandatory. It may be tough to keep track of which days are utilized for what and how much to roll over each year if you mix the plans. PTO rules, for example, are often “use it or lose it,” although sick time is not, since workers may carry over up to 40 hours per year.
Expansion of the City of Portland during State Sick Leave
Portland is now the only city in Oregon that has more stringent standards for paid sick leave than the state of Oregon. Portland has a Protected Sick Time Ordinance that compels firms with as low as six workers to give 40 hours of paid sick leave, although the state does not require sick leave to be paid until a staff size of ten employees. Regardless of the size of the company, both need unpaid sick leave to be accessible.
Employer Risks from Sick Leave in Oregon
There are risks of not complying with Oregon sick leave rules, as there are with many other labor laws in Oregon. In fact, if your company is based in Portland, which has stronger requirements, you must follow both local (city) sick leave standards as well as Oregon legislation.
Sick Leave Laws
The most prevalent problem that uniformed Oregon company owners have is failing to realize that they must provide both unpaid and compensated sick leave or face fines and penalties. They also can’t figure out how many sick days an employee has accumulated depending on their income.
Other mistakes or discrepancies in sick leave administration are less prevalent, but they may still be expensive. There are a few mistakes to avoid when managing your sick leave policy, whether it’s dismissing an employee for taking sick leave (prohibited), neglecting to retain sick leave records (risky), or expecting an employee to “make up” their shift (not permitted).
Workers should not be required to provide documentation for sick leave until day four.
Do not request a doctor’s letter unless you feel a worker is abusing their sick leave, such as phoning in every Monday following a weekend binge. This paperwork is not necessary for Oregon, and it’s preferable not to request it until the employee has been off from work for at least four days on sick leave. Of course, if the employee needs longer than four days and requests the time ahead of time, such as for surgery, it’s OK to ask for paperwork in accordance with your company’s leave policy.
Retaliate against an employee who takes sick time.
The employer might be punished if management punishes an employee in any manner (or worse, fires them) for using available paid or unpaid sick leave. Furthermore, the company might be forced to reimburse any lost earnings that would have been paid if the employee had not been suspended, demoted, or fired.
Do not punish an employee for taking sick leave.
Employers in Oregon are prohibited from disciplining employees who take time off for a doctor’s visit or sickness. You may, however, reprimand them if they fail to inform you according to your established attendance policy (no show/no call), or if they fail to report to work after using all of their paid sick and unpaid leave benefits. Keep in mind that if the employee is qualified for or has filed for FMLA, your FMLA policy will take priority.
Monthly Sick Time Accruals should not be averaged.
Full-time workers working 40 hours a week in Oregon are entitled to 1.33 hours of sick time for every 40 hours worked. Even if you pay by the month, you must still figure out how many hours an employee worked in that month in order to compute sick leave accruals. That’s why some companies in Oregon choose to take all 40 hours of paid sick leave at the beginning of the year.
Avoid Making Mistakes With Paid Sick Time For “Seasonal” Workers
In this area, managing the rights of seasonal workers might be problematic. Seasonal workers may be entitled to paid sick leave in certain circumstances, but not all. Here’s an illustration: My company employs 11 people, but only for a limited time as seasonal workers.
In this case, you need to do the following steps: Employees are entitled to paid sick days if an employer has had 20 weeks (not necessarily consecutive) with a daily average of 10 or more (six or more anywhere in the state for firms with operations in Portland). Employers should review the preceding year to see whether there were any 20 weeks within that time period where the daily average number of workers was ten or higher (again, six or more for employers with operations in Portland).
Organize your schedule
When it comes to managing sick time and vacation, scheduling software may be a tremendous help. When it comes to handling employee leave and time off, we’ve found Homebase to be a valuable resource. Because its scheduling and time tracking features are connected, this solution enables your team to easily update their availability, request shift swaps, and process payroll.
Other Threats
Employers may also face risks while implementing a sick leave policy in Oregon, such as failing to comply with record retention laws or failing to produce appropriate documents. Avoid the following blunders:
- Failure to keep track of sick time. Employers in Oregon are expected to save four years’ worth of sick leave papers, including your policy, sick leave time off, and payment records.
- Sick leave is granted on a case-by-case basis. It might be dangerous to fail to give sick leave in a fair and regular way. If a new employee is able to take paid sick leave immediately away but others are expected to wait until their 91st day before taking paid sick leave, your company may be accused of discrimination.
- Requiring the employee to “make up” time on the job. You cannot ask an employee to perform another shift to make up work while they are on sick leave, according to Oregon law.
- Not adhering to the city’s tighter standards. Based on the size of the firm, Portland has its own set of rules for handling sick leave.
- The absence of a sick leave policy in the employee’s native tongue. You may be employing personnel that does not speak English or Spanish, which is uncommon. You must offer the sick leave policy in their native language in Oregon.
Additional FAQs about Oregon’s sick leave rules may be found on the Oregon.gov website.
Conclusion
Although Oregon is an excellent area to start a company, its employment regulations vary from those in other states—significantly in certain circumstances. Oregon has joined a few other states, such as California, in requiring workers to take sick leave. To prevent needless labor law audits and penalties, we advocate outsourcing HR and legal compliance activities to guarantee your organization complies with Oregon’s requirements.
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Frequently Asked Questions
Does Oregon mandate sick leave?
Yes, Oregon does mandate sick leave for employees.
How many sick days do you get a year in Oregon?
A: 3
