Statutory Update: OR PFML Contribution Rate; July 1 Reminders; AL Adoption Leave Update; West Hollywood Paid Leave Regulations

June 10, 2022

Non-COVID-19 Legislation

State and Local

Paid Family and Medical Leave Updates

Oregon Paid Family and Medical Leave (OR PFML) – 2023 Contribution Rate

Last month the Oregon Employment Department (OED) announced that the contribution rate for OR PFML beginning January 1, 2023, will be 1% of employees’ wages (the law itself indicated that the rate was “not to exceed” 1%). 

• The maximum wages subject to contribution will be $132,900.
• Of the total rate employers will contribute 40% and employees will contribute 60%.
• Employers with fewer than 25 employees nationwide are not required to pay the employer portion of the contribution.
• Employers may elect to pay the required employee contributions, in whole or in part, as an employer-offered benefit.
• More information may be found on the OED’s Contributions Fact Sheet.

July 1, 2022 Reminders

1. Connecticut Paid Family and Medical Leave (CT PFML)
   • CT PFML and CT FMLA Notice Requirement Begins
     • Beginning July 1, 2022, employers must at the time of hiring, and annually thereafter, provide written notice to each employee (1) of the entitlement to family and medical leave under CT FMLA and the terms under which such leave may be used; (2) of the opportunity to file a claim for compensation under CT PFML; (3) that retaliation by the employer against the employee for requesting, applying for or using family and medical leave for which the employee is eligible is prohibited; and (4) that the employee has a right to file a complaint with the Labor Commissioner for any violation of either law’s requirements.
     • The CT DOL has posted a model Employer’s Written Notice of Employee’s Rights template to satisfy this notice requirement on its website. Employers may create their own notice; however, it must contain the information required by regulations.
   • CT PFML Maximum Benefit Amount will increase July 1, from $780 per week to $840 per week, in accordance with the state’s minimum wage increase from $13/hour to $14/hour.
2. District of Columbia Paid Family and Medical Leave (DC PFML) Rate Decrease
   • Effective July 1 the employer contribution rate for DC PFML will decrease from 0.62% to 0.26% of wages.
3. Rhode Island Temporary Disability Insurance (TDI) and Temporary Caregiver Insurance (RI TCI) Weekly Benefit Amount
   • The RI Department of Labor and Training (RI DLT) typically releases the maximum weekly benefit amount on or around July 1.
4. Laws Becoming Effective July 1
   • Alabama Adoption Promotion Act
     • • See our May 12 Update for details.
       • Note: According to guidance we have obtained from legal resources, “paid leave” would include benefits provided under an employer’s Short Term Disability program. This means that, even if an employer does not sponsor a separate paid leave policy for bonding, but does offer STD benefits for childbirth and recovery, they must provide paid leave to an employee who adopts a child. This update has been added to the May 12 blog post.
   • West Hollywood, CA Accrued Leave
     • • The law became effective for hotel employers January 1, 2022, and applies to all other employers effective July 1; see our December 3, 2021 Statutory Update for more details.
       • Updates:
         • On May 16 the City Council approved Ordinance No. 22-1180, making the following amendments to the original law effective June 15:
           • Removed the requirement that, once an employee reaches 192 hours of paid leave, the employer must provide a cash payment once every 30 days for accrued time over the maximum.
           • Added a one-year waiver of the law’s leave requirements under certain conditions (see Section 4(B)). 
         • The City Council has also posted administrative regulations on its Minimum Wage webpage. Per the regulations:
           • Leave accrual begins on the first day of employment.
           • Paid leave is accrued at a rate of 0.047 hours per hour worked, and unpaid leave is accrued at a rate of 0.039 hours per hour worked (this is a clarification of the original law’s rates, specified as “96/52 hours” and “80/52 hours”, respectively).
           • Full-time employees (employees working 40 hours/week or classified as full-time by company policy, if more generous) accrue up to 96 hours of paid leave and 80 hours of unpaid leave per year; leave is prorated for employees working fewer than full-time hours.
           • Employers may provide paid leave for sick, vacation, or personal necessity separately, as long as the total combined number of paid leave hours is greater than or equal to 96 hours for full-time employees, and at least 50% of the time is either vacation or personal necessity leave.
           • Employers may choose to front-load paid leave in lieu of accrual. Employers who chose to front-load leave must select one type of anniversary, either the beginning of each year of employment or other 12-month period. All required paid leave hours must be provided at each anniversary date.
           • Unused paid leave, whether provided under accrual or by front-loading, will carry over to the following year up to a maximum of 192 hours, unless the employer’s policy is more generous. Unused unpaid leave will carry over to the following year up to a maximum of 80 hours, unless the employer’s policy is more generous. When an employee reaches the maximum accrued paid and unpaid leave, the employee will not accrue additional leave until a portion of the leave is used.
           • For the use of accrued unpaid leave, “immediate family member” is as defined under the California Family Rights Act (CFRA).
           • Per California Labor Code 227.3, any portion of paid leave classified as vacation or personal necessity leave shall be paid out at the employee’s regular wage rate upon termination. Any portion of paid leave classified as sick leave is not required to be paid to the employee upon termination. However, if an employee is rehired within 1 year of the date of separation from employment, any previously accrued and unused paid leave classified as paid sick leave must be reinstated, unless also paid out at termination under the employer’s policy. Unused unpaid leave need not be paid out at termination, but must be reinstated with rehire within 1 year.
           • Employees are entitled to use accrued paid and unpaid leave no later than 120 days  from their first day of employment or consistent with company policies, whichever is sooner. However, paid leave designated as sick leave must be made available to an employee no later than the 90th day of their employment, pursuant to state law.
   • New Mexico Healthy Workplaces Act (NM HWA)
     • • The law, enacted on April 8, 2021, provides that, beginning July 1, 2022, employees working in New Mexico must accrue 1 hour of paid leave for every 30 hours worked, up to 64 hours per year. Accrued time may be used for an employee’s or a covered family member’s illness or injury, or to tend to certain legal and family issues.
       • More information may be found in our May 14, 2021 Update and on the New Mexico Department of Workforce Solutions’ Paid Sick Leave webpage, which includes FAQ and the HWA guide, as well as the required notice (also available in Spanish). The notice must be posted and provided at time of hire, in English, Spanish or any primary language of 10% of the employer’s workforce.
   • Bernalillo County, NM Employee Wellness Act
     • • The Employee Wellness Act requires that employees accrue 1 hour of paid leave for every 32 hours worked, which can be used for any reason.  The law originally became effective on October 1, 2020, and featured a phased-in limit for accruals, as outlined below.  The maximum accrual requirement, 56 hours for employers with 35 or more employees, becomes effective this July 1.

• • • • More information and resources may be found on the County’s Employee Wellness Act webpage.

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