Chapter 657B — Family and Medical Leave Insurance

 

2019 EDITION

 

 

FAMILY AND MEDICAL LEAVE INSURANCE

 

LABOR, EMPLOYMENT; UNLAWFUL DISCRIMINATION

 

GENERALLY

 

657B.005  Legislative findings

 

657B.010  Definitions

 

BENEFITS AND CLAIMS

 

(Generally)

 

657B.015  Benefit eligibility

 

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

 

657B.025  Coordination of leave

 

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

 

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

 

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

 

(Protections)

 

657B.060  Job protection; benefits; discrimination prohibited

 

(Prohibited Conduct)

 

657B.070  Denying leave; discrimination and retaliation prohibited; remedies for violation

 

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

 

(Claims Administration)

 

657B.090  Claim for benefits; leave increment requirements

 

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

 

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

 

657B.120  False statements or failure to report material fact; erroneous payments; recovery or deduction of benefits paid because of misrepresentation or nondisclosure; penalties; rules

 

ELECTIVE COVERAGE

 

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

 

CONTRIBUTIONS

 

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

 

657B.175  Effect of place of performance of service

 

657B.180  Unlawful practices of employer

 

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

 

657B.200  Employer assistance grants; eligibility; rules

 

EQUIVALENT PLANS

 

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

 

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

 

657B.230  Application for reapproval of plan

 

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

 

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

 

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

 

COLLECTIONS; RECOVERY OF IMPROPER BENEFIT PAYMENTS

 

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

 

657B.290  Filing of lien statement or warrant

 

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

 

657B.310  Release, compromise or satisfaction of lien

 

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

 

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

 

EMPLOYMENT DEPARTMENT; ADMINISTRATION

 

(Generally)

 

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

 

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

 

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

 

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

 

657B.380  Advisory committee; membership; terms

 

657B.390  Employment records; inspection

 

657B.400  Confidentiality of information

 

(Appeals)

 

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

 

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

 

(Reports and Reviews)

 

(Temporary provisions relating to reports and reviews by Director of Employment Department are compiled as notes following ORS 657B.420)

 

FUNDS

 

657B.430  Paid Family and Medical Leave Insurance Fund

 

MISCELLANEOUS PROVISIONS

 

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

 

657B.460  Construction of chapter

 

Note          Reopening or renegotiation of collective bargaining agreement--2019 c.700 §49

 

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

 

657B.480  State agency assistance; intergovernmental agreements

 

PENALTIES

 

657B.900  Criminal penalties

 

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

 

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

 

GENERALLY

 

      657B.005 Legislative findings. The Legislative Assembly finds that:

      (1) Employees experience a variety of caregiving obligations that interfere with work time.

      (2) 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 the child’s birth or arrival through adoption or foster care, to provide care for a family member who has a serious health condition or to recover from an employee’s or an individual’s own serious health condition. [2019 c.700 §1]

 

      657B.010 Definitions. As used in this chapter:

      (1) “Alternate base year” means the last four completed calendar quarters preceding the benefit year.

      (2) “Average weekly wage” means the amount calculated by the Employment Department as the state average weekly covered wage under ORS 657.150 (4)(d) as determined not more than once per year.

      (3) “Base year” means the first four of the last five completed calendar quarters preceding the benefit year.

      (4) “Benefits” means family and medical leave insurance benefits.

      (5) “Benefit year” means the 12-month period as determined by the Director of the Employment Department by rule under ORS 657B.340.

      (6) “Child” means:

      (a) A biological child, adopted child, stepchild or foster child of a covered individual or of the covered individual’s spouse or domestic partner;

      (b) A person who is or was a legal ward of a covered individual or of the covered individual’s spouse or domestic partner; or

      (c) A person who is or was in a relationship of in loco parentis with a covered individual or with the covered individual’s spouse or domestic partner.

      (7) “Contribution” or “contributions” means the money payments made by any of the following under ORS 657B.150:

      (a) An employer;

      (b) An eligible employee;

      (c) A self-employed individual;

      (d) A tribal government; or

      (e) An employee of a tribal government.

      (8) “Covered individual” means any one of the following who qualifies to receive family and medical leave insurance benefits:

      (a) An eligible employee;

      (b) A self-employed individual; or

      (c) An employee of a tribal government.

      (9) “Domestic partner” means an individual joined in a domestic partnership.

      (10) “Domestic partnership” has the meaning given that term in ORS 106.310.

      (11) “Eligible employee” means:

      (a)(A) An employee who has earned at least $1,000 in wages during the base year; or

      (B) If an employee has not earned at least $1,000 in wages during the base year, an employee who has earned at least $1,000 in wages during the alternate base year; and

      (b) Who may apply for paid family and medical leave insurance benefits under ORS 657B.015.

      (12) “Eligible employee’s average weekly wage” means an amount calculated by the Director of the Employment Department by dividing the total wages earned by an eligible employee during the base year by the number of weeks in the base year.

      (13)(a) “Employee” means:

      (A) An individual performing services for an employer for remuneration or under any contract of hire, written or oral, express or implied.

      (B) A home care worker as defined in ORS 410.600.

      (b) “Employee” does not include:

      (A) An independent contractor as defined in ORS 670.600.

      (B) A participant in a work training program administered under a state or federal assistance program.

      (C) A participant in a work-study program that provides students in secondary or postsecondary educational institutions with employment opportunities for financial assistance or vocational training.

      (D) A railroad worker exempted under the federal Railroad Unemployment Insurance Act.

      (E) A volunteer.

      (14)(a) “Employer” means any person that employs one or more employees working anywhere in this state or any agent or employee of such person to whom the duties of the person under this chapter have been delegated.

      (b) “Employer” includes:

      (A) A political subdivision of this state or any county, city, district, authority or public corporation, or any instrumentality of a county, city, district, authority or public corporation, organized and existing under law or charter;

      (B) An individual;

      (C) Any type of organization, corporation, partnership, limited liability company, association, trust, estate, joint stock company or insurance company;

      (D) Any successor in interest to an entity described in subparagraph (C) of this paragraph;

      (E) A trustee, trustee in bankruptcy or receiver; or

      (F) A trustee or legal representative of a deceased person.

      (c) “Employer” does not include the federal government or a tribal government.

      (15) “Employment agency” has the meaning given that term in ORS 658.005.

      (16) “Family and medical leave insurance benefits” means the wage replacement benefits that are available to a covered individual under ORS 657B.050 or under the terms of an employer plan approved under ORS 657B.210, for family leave, medical leave or safe leave.

      (17)(a) “Family leave” means leave from work taken by a covered individual:

      (A) To care for and bond with a child during the first year after the child’s birth or during the first year after the placement of the child through foster care or adoption; or

      (B) To care for a family member with a serious health condition.

      (b) “Family leave” does not mean:

      (A) Leave described in ORS 659A.159 (1)(d);

      (B) Leave described in ORS 659A.159 (1)(e); or

      (C) Leave authorized under ORS 659A.093.

      (18) “Family member” means:

      (a) The spouse of a covered individual;

      (b) A child of a covered individual or the child’s spouse or domestic partner;

      (c) A parent of a covered individual or the parent’s spouse or domestic partner;

      (d) A sibling or stepsibling of a covered individual or the sibling’s or stepsibling’s spouse or domestic partner;

      (e) A grandparent of a covered individual or the grandparent’s spouse or domestic partner;

      (f) A grandchild of a covered individual or the grandchild’s spouse or domestic partner;

      (g) The domestic partner of a covered individual; or

      (h) Any individual related by blood or affinity whose close association with a covered individual is the equivalent of a family relationship.

      (19) “Medical leave” means leave from work taken by a covered individual that is made necessary by the individual’s own serious health condition.

      (20) “Parent” means:

      (a) A biological parent, adoptive parent, stepparent or foster parent of a covered individual;

      (b) A person who was a foster parent of a covered individual when the covered individual was a minor;

      (c) A person designated as the legal guardian of a covered individual at the time the covered individual was a minor or required a legal guardian;

      (d) A person with whom a covered individual was or is in a relationship of in loco parentis; or

      (e) A parent of a covered individual’s spouse or domestic partner who meets a description under paragraphs (a) to (d) of this subsection.

      (21) “Safe leave” means leave taken for any purpose described in 659A.272.

      (22) “Self-employed individual” means:

      (a) An individual who has self-employment income as defined in section 1402(b) of the Internal Revenue Code as amended and in effect on December 31, 2018; or

      (b) An independent contractor as defined in ORS 670.600.

      (23) “Serious health condition” has the meaning given that term in ORS 659A.150.

      (24) “Third party administrator” means a third party that enters into an agreement with the Director of the Employment Department to implement and administer the paid family and medical leave program established under this chapter.

      (25) “Tribal government” has the meaning given that term in ORS 181A.680.

      (26) “Wages” has the meaning given that term in ORS 657.105. [2019 c.700 §2]

 

BENEFITS AND CLAIMS

 

(Generally)

 

      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:

      (1) An eligible employee who:

      (a) 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; and

      (b) Submits a claim for benefits in accordance with the requirements under ORS 657B.090;

      (2) A self-employed individual who:

      (a) Elects coverage under ORS 657B.130; and

      (b) 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 an amount determined by the Director of the Employment Department under ORS 657B.150; or

      (3) An employee of a tribal government, if:

      (a) The tribal government elects coverage for its employees under ORS 657B.130; and

      (b) During the base year or alternate base year, as applicable, the employee and tribal government contribute to the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430 an amount determined by the director under ORS 657B.150. [2019 c.700 §3]

 

      Note: 657B.015 becomes operative January 1, 2023. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.020 Qualifying purposes for benefits; duration of benefits. (1) 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:

      (a) Family leave;

      (b) Medical leave; or

      (c) Safe leave.

      (2) Notwithstanding ORS 657B.025 and except as provided under subsection (3) of this section, a covered individual who has taken any amount of paid leave available under subsection (1) of this section may take a total of 16 weeks of leave in the benefit year in any combination of the paid leave available under subsection (1) of this section, not to exceed 12 weeks, and unpaid leave under ORS 659A.159 for which the covered individual is eligible under ORS 659A.156. The leave may be taken for any purpose for which leave is allowable under the respective leave programs.

      (3) In addition to the leave available under subsections (1) and (2) of this section, a covered individual may qualify for up to two additional weeks of benefits for limitations related to pregnancy, childbirth or a related medical condition, including but not limited to lactation, for a total amount of leave under this subsection and subsections (1) and (2) of this section, not to exceed 18 weeks per benefit year. [2019 c.700 §4]

 

      Note: 657B.020 becomes operative January 1, 2023. See section 63, chapter 700, Oregon Laws 2019.

 

      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 ORS 659A.150 to 659A.186 or under the federal Family and Medical Leave Act of 1993 (P.L. 103-3) for the same purposes. [2019 c.700 §5]

 

      Note: 657B.025 becomes operative January 1, 2023. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.030 Use of other paid leave benefits in addition to paid family and medical leave insurance benefits. (1) 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.

      (2) An employer may permit an employee to use paid sick time, vacation leave or any other paid leave earned by the employee in addition to receiving paid family and medical leave insurance benefits to replace an employee’s wages up to 100 percent of the eligible employee’s average weekly wage during a period of leave taken for family leave, medical leave or safe leave.

      (3) In any week in which an employee is eligible to receive workers’ compensation or unemployment benefits under ORS chapter 656 or 657, the employee is disqualified from receiving family and medical leave insurance benefits. [2019 c.700 §6]

 

      Note: 657B.030 becomes operative January 1, 2023. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.040 Notice to employers prior to commencing leave; exceptions. (1) 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.

      (2) An eligible employee may commence leave without 30 days’ advance notice if the leave is not foreseeable, as in circumstances including but not limited to:

      (a) An unexpected serious health condition of the employee or a family member of the employee;

      (b) A premature birth, unexpected adoption or unexpected foster placement by or with the employee; or

      (c) Safe leave.

      (3)(a) Except as provided in subsection (5) of this section, if an eligible employee commences leave without prior notice under subsection (2) of this section, the employee must give oral notice to the employer within 24 hours of the commencement of the leave and must provide the written notice required under subsection (1) of this section within three days after the commencement of leave.

      (b) The oral notice required by this subsection may be given by any other person on behalf of the eligible employee taking leave.

      (c) The person named as the eligible employee’s emergency contact person, or any other person otherwise designated by the eligible employee, as reflected in the employer’s records, may provide the written notice required under subsection (1) of this section.

      (4)(a) If an eligible employee fails to give notice as required under subsections (2) and (3) of this section, the Director of the Employment Department may reduce the first weekly benefit amount payable to the employee under ORS 657B.090 by up to 25 percent.

      (b) An employer shall notify the director of the employee’s failure to provide the required notice, in the manner prescribed by the director by rule.

      (5) An eligible employee who takes safe leave shall give the employer reasonable advance notice of the individual’s intention to take safe leave, unless giving the advance notice is not feasible. [2019 c.700 §9]

 

      Note: 657B.040 becomes operative January 1, 2023. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.050 Amount of benefits; limits on weekly benefit amount; extent to which benefits are payable. (1) 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:

      (a) 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 employee’s average weekly wage.

      (b) If the eligible employee’s average weekly wage is greater than 65 percent of the average weekly wage, the employee’s weekly benefit amount is the sum of:

      (A) 65 percent of the average weekly wage; and

      (B) 50 percent of the employee’s average weekly wage that is greater than 65 percent of the average weekly wage.

      (2) Notwithstanding subsection (1) of this section, the director shall establish:

      (a) A maximum weekly benefit amount of 120 percent of the average weekly wage.

      (b) A minimum weekly benefit amount of five percent of the average weekly wage.

      (3) The director shall determine, based on the contribution amounts made by a self-employed individual, a tribal government or the employees of a tribal government under ORS 657B.150, the amount of benefits payable to a self-employed individual or to an employee of a tribal government.

      (4) Benefits are payable only to the extent that moneys are available in the Paid Family and Medical Leave Insurance Fund for that purpose. The state, any political subdivision of the state and any state agency are not liable for any amount in excess of this limit. [2019 c.700 §7]

 

      Note: 657B.050 becomes operative January 1, 2023. See section 63, chapter 700, Oregon Laws 2019.

 

(Protections)

 

      657B.060 Job protection; benefits; discrimination prohibited. (1)(a) 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 a replacement worker during the period of leave. If the position held by the employee at the time leave commenced no longer exists, the employee is entitled to be restored to any available equivalent position with equivalent employment benefits, pay and other terms and conditions of employment.

      (b) For employers that employ fewer than 25 employees, if the position held by an eligible employee when the employee’s leave commenced no longer exists, an employer may, at the employer’s discretion based on business necessity, restore the eligible employee to a different position with similar job duties and with the same employment benefits and pay.

      (2) During a period in which an eligible employee takes leave described under subsection (1) of this section, the employer shall maintain any health care benefits the employee had prior to taking such leave for the duration of the leave, as if the employee had continued in employment continuously during the period of leave.

      (3) An eligible employee who has taken leave described under subsection (1) of this section does not lose any employment benefits, including seniority or pension rights, accrued before the date on which the leave commenced.

      (4) It is an unlawful employment practice to discriminate against an eligible employee who has invoked any provision of this chapter.

      (5) Nothing in this section entitles an eligible employee to accrue employment benefits during a period of leave or to a right, benefit or position of employment other than a right, benefit or position to which the employee would have been entitled had the employee not taken leave.

      (6)(a) Nothing in this section requires an employer to retain a temporary worker who was hired to replace an eligible employee taking family leave, medical leave or safe leave after the eligible employee has returned to work.

      (b) A civil action may not be brought against an employer for taking any of the following actions necessary to restore an eligible employee to the position of employment held by the employee as required under subsection (1) of this section:

      (A) Terminating the employment of a worker who was hired solely to temporarily replace an eligible employee during a period of leave; or

      (B) Removing an employee from a position to which the employee was transferred to temporarily replace an eligible employee while the eligible employee was on leave, and returning the employee to the position originally held by the employee prior to the transfer at the salary or rate of pay and benefits associated with the position.

      (c) An employer shall, either at the time of hire or before reassignment, inform a temporary worker or an employee who is reassigned to a position to temporarily replace an eligible employee during a period of leave of the information provided under this subsection.

      (7) The protections provided under this section apply only to an eligible employee who was employed by the employer for at least 90 days before taking leave described under subsection (1) of this section. [2019 c.700 §10]

 

      Note: 657B.060 becomes operative January 1, 2023. See section 63, chapter 700, Oregon Laws 2019.

 

(Prohibited Conduct)

 

      657B.070 Denying leave; discrimination and retaliation prohibited; remedies for violation. (1) It is an unlawful employment practice for an employer to:

      (a) Violate ORS 657B.060.

      (b) Deny leave or interfere with any other right to which an eligible employee is entitled under this chapter.

      (c) 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 about the rights or responsibilities under this chapter.

      (2) An employee who alleges a violation of this section may bring a civil action under ORS 659A.885 or may file a complaint with the Commissioner of the Bureau of Labor and Industries in the manner provided by ORS 659A.820. [2019 c.700 §11]

 

      Note: 657B.070 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      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. [2019 c.700 §29]

 

      Note: 657B.080 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

(Claims Administration)

 

      657B.090 Claim for benefits; leave increment requirements. (1) Family and medical leave insurance benefits are not payable to a covered individual unless:

      (a) The individual submits a claim to the Director of the Employment Department in the manner determined by the director by rule; and

      (b) The director has made a decision to allow or deny the claim under ORS 657B.100.

      (2) If the director has made a decision to allow the claim, the director shall make a reasonable effort to issue the first payment of benefits to a covered individual within two weeks after receiving the claim.

      (3)(a) Benefits may be claimed for leave that is taken by a covered individual in increments that are equivalent to one work day or one work week as those terms are defined by the director by rule.

      (b) If a covered individual takes leave in increments that are equivalent to one work day, benefits may be claimed for leave that occurs in nonconsecutive periods of leave that, when combined, provide the minimum benefit amount provided in ORS 657B.050.

      (4) Benefit amounts, as determined under ORS 657B.050:

      (a) Must be prorated to increments that are equivalent to one work day; and

      (b) Must be paid in increments that are equivalent to one work week. [2019 c.700 §12]

 

      Note: 657B.090 becomes operative January 1, 2023. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.100 Allowing or denying claim; notice of denial; decision final unless hearing requested. (1) 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 such information is true and correct to the best of the individual’s knowledge.

      (2)(a) The director shall promptly give notice of a decision to allow or deny a claim.

      (b) If the claim is denied, the written notice must include a statement of the reasons for denial.

      (3) A decision made under this section is final and the benefits must be paid or denied accordingly. A covered individual may request review of the director’s decision as provided in ORS 657B.410. [2019 c.700 §13]

 

      Note: 657B.100 becomes operative January 1, 2023. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.110 Continuous jurisdiction of director; reconsideration of previous decisions. (1) 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:

      (a) Errors of computation;

      (b) Clerical errors;

      (c) Misinformation provided to a party by the Employment Department;

      (d) Facts not previously known to the director; or

      (e) Errors caused by misapplication of law by the department.

      (2) Reconsideration of a final decision shall be made in accordance with such regulations as the director may prescribe, and may include the making of a new decision which, if made, shall award, deny, terminate, continue, increase or decrease benefits to the extent found necessary and appropriate for the correction of a previous error respecting such benefits. Any new decision made under this subsection shall be subject to review as provided in ORS 657B.410. [2019 c.700 §14]

 

      Note: 657B.110 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.120 False statements or failure to report material fact; erroneous payments; recovery or deduction of benefits paid because of misrepresentation or nondisclosure; penalties; rules. (1) 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.

      (2) The Director of the Employment Department may assess a civil penalty in an amount not to exceed $1,000 against an employer for each occurrence that violates subsection (1) of this section.

      (3) If the director determines that a covered individual willfully made a false statement or willfully failed to report a material fact in order to obtain benefits under this chapter, the covered individual is:

      (a) Disqualified from claiming benefits for one year; and

      (b) Liable for a penalty imposed at a rate prescribed by the director of at least 15 percent, but not greater than 30 percent, of the amount of benefits the individual received to which the individual was not entitled.

      (4) If the director determines that a covered individual has received benefits to which the individual was not entitled, the director may:

      (a) Seek repayment of benefits from the covered individual in a manner prescribed by the director by rule; and

      (b) Have the amount of the benefits deducted from any future benefits otherwise payable to the individual under ORS 657B.100.

      (5) If benefits are paid because of an error that is not due to provision of a false statement, nondisclosure of a material fact or misrepresentation by a covered individual, the director may waive, in whole or in part, the amount of any such payments for which recovery under subsection (4) of this section would be against equity, good conscience or administrative efficiency.

      (6) A decision of the director under this section does not authorize the recovery of the amount of any benefits paid to a covered individual until the decision is final and the decision specifies:

      (a) That the covered individual, by reason of false statement, nondisclosure or misrepresentation, is liable to repay the amount to the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430;

      (b) The nature of the false statement, nondisclosure or misrepresentation;

      (c) The week or weeks for which the benefits were paid; and

      (d) That any amount subject to recovery and any penalty due under this section may be collected by the director in a civil action against the employer or covered individual brought in the name of the director.

      (7) The director shall adopt rules establishing standards and procedures for the repayment of benefits and payment of penalties and interest under this section.

      (8) An employer or covered individual may appeal a determination made under this section as provided in ORS 657B.410. [2019 c.700 §15]

 

      Note: 657B.120 becomes operative January 1, 2023. See section 63, chapter 700, Oregon Laws 2019.

 

ELECTIVE COVERAGE

 

      657B.130 Elective coverage for certain individuals; notice of election; termination of coverage; rules for collection of contributions and benefit overpayments. (1) 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 established under ORS 657B.430 in the manner prescribed by the director by rule. The election becomes effective on the date the notice is filed. The self-employed individual must agree to supply any information concerning taxable income that the director deems necessary.

      (2) Subject to ORS 657B.150, a self-employed individual who has elected coverage may terminate coverage by filing written notice with the director at such times as the director prescribes by rule, including at the time of a change in the self-employed individual’s employment status. The termination may not take effect sooner than 30 days after the notice is filed.

      (3) A self-employed individual who has elected coverage may terminate coverage on the date of filing of a voluntary or involuntary bankruptcy petition. The self-employed individual’s elective coverage terminates on the date on which the self-employed individual provides to the director documentation to support the self-employed individual’s filing of the bankruptcy petition and files written notice with the director. At any time thereafter, the self-employed individual may re-elect coverage under this section.

      (4) A tribal government may elect to be covered under this chapter, or to terminate coverage, in the same manner as provided in subsections (1) to (3) of this section.

      (5) The director shall prescribe by rule the method for collecting contributions and erroneous payments of benefits from self-employed individuals, tribal governments and tribal government employees. [2019 c.700 §41]

 

      Note: 657B.130 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

CONTRIBUTIONS

 

      657B.150 Contributions; director to set rates; reporting requirements for employers; rules for successor in interest. (1)(a) Except as otherwise provided in subsections (3) and (4) of this section, all employers and eligible employees shall contribute to the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430.

      (b) Contributions shall be paid by employers and employees as a percentage of a total rate determined by the Director of the Employment Department.

      (c) The total rate may not exceed one percent of employee wages, up to a maximum of $132,900 in wages.

      (2)(a) Employer contributions shall be paid in an amount that is equal to 40 percent of the total rate determined by the director.

      (b) An employer shall deduct employee contributions from the wages of each employee in an amount that is equal to 60 percent of the total rate determined by the director.

      (3) When an employment agency is acting as an employer, the employer contributions required under this section shall be the responsibility of the employment agency.

      (4)(a) Employers that employ fewer than 25 employees are not required to pay the employer contributions under subsection (1) of this section.

      (b) If an employer that employs fewer than 25 employees elects to pay the employer contributions under subsection (1) of this section, the employer may apply to receive a grant under ORS 657B.200.

      (5) Notwithstanding subsection (1) of this section, an employer may elect to pay the required employee contributions, in whole or in part, as an employer-offered benefit.

      (6) Subject to ORS 657B.130 (2) and (3), a self-employed individual who has elected coverage under ORS 657B.130 (1) shall contribute to the fund, at a rate that may not exceed one percent of the individual’s taxable income as determined by the director by rule, for a period of not less than three years from the date that the election becomes effective.

      (7) A tribal government that elects coverage under ORS 657B.130 and employees of the tribal government shall contribute to the fund in contribution amounts and at a rate that may not exceed one percent of employee wages, up to a maximum of $132,900 in wages, as determined by the director by rule, for a period of not less than three years from the date that the election becomes effective.

      (8) The director shall set rates for the collection of payroll contributions consistent with subsection (1) of this section and in a manner such that:

      (a) At the end of the period for which the rates are effective, the balance of moneys in the fund is an amount not less than six months’ worth of projected expenditures from the fund for performance of the functions and duties of the director under this chapter; and

      (b) The volatility of the contribution rates is minimized.

      (9) For purposes of subsections (1)(c) and (7) of this section, the director shall annually adjust the maximum amount of employee wages by the percentage increase, if any, in the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the United States Department of Labor, since the date of the previous determination made under this subsection.

      (10) The director shall determine on an annual basis the amount of payroll contributions, timing of payroll contributions and maximum employee contributions sufficient to finance the costs related to the provisions of this chapter.

      (11) An employer shall hold any moneys collected under this section in trust for the State of Oregon and for the payment thereof to the Department of Revenue in the manner described in subsection (12) of this section.

      (12)(a) An employer shall make and file a combined quarterly report of wages earned and contributions paid under this section on a form prescribed by the Department of Revenue.

      (b) The report shall be filed with the Department of Revenue on or before the last day of the month following the quarter to which the report relates and shall be deemed received on the date of mailing.

      (c) The report shall be accompanied by payment of any contributions due under this section in a manner determined by the Department of Revenue by rule.

      (13) Moneys collected under this section shall be deposited in the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430.

      (14)(a) If an employer ceases or discontinues operations or business, or sells out, exchanges or otherwise disposes of the business or stock of goods, any payroll contribution payable under this section is immediately due and payable, and the employer shall, within 10 calendar days, pay the payroll contribution due. Any person who becomes a successor in interest to the business is liable for the full amount of the unpaid payroll contribution.

      (b) The director shall adopt rules for compliance with this chapter with regard to contributions from an employer’s successor in interest.

      (15) Benefits may not be denied to a covered individual solely because an employer failed to collect or remit the contributions required under this section. [2019 c.700 §16]

 

      Note: 657B.150 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      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:

      (1) Performed entirely within this state; or

      (2) Performed both within and outside this state, but the service performed outside this state is incidental to the employee’s service within the state. [2019 c.700 §21]

 

      Note: 657B.175 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.180 Unlawful practices of employer. (1) 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.

      (2) An employer may not make a deduction from the wages of an employee to pay any portion of the employer contributions due from the employer. [2019 c.700 §26]

 

      Note: 657B.180 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.190 Employer’s security for payment of contributions. (1) 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, branch, agency or political subdivision of this state, to deposit and keep on deposit with the director a sum equal to the contributions due or estimated to be due from the employer for a period of three calendar quarters.

      (2)(a) In lieu of a deposit required under subsection (1) of this section, the director may accept a bond or an irrevocable letter of credit issued by an insured institution as defined in ORS 706.008 in a form acceptable to the director to secure payment of contributions to become due to the fund.

      (b) The deposit or posting of a bond or letter of credit under paragraph (a) of this subsection shall not relieve the employer of the obligation to make contributions to the fund as provided under ORS 657B.150.

      (c) The director may at any time apply any portion of the deposit, payment on the bond or the proceeds of the letter of credit to the payment of any amounts due from the employer under any provisions of this chapter.

      (3)(a) Except as provided in subsection (4) of this section, any deposit, bond or letter of credit shall be deemed for all purposes to become the sole property of the director and shall be deposited in the fund and held for the sole benefit of the fund.

      (b) The deposit, bond or letter of credit shall be prior to all other liens, claims or encumbrances and shall be exempt from any process, attachment, garnishment or execution whatsoever and shall be for the sole benefit of the fund.

      (4)(a) If an employer ceases to be an employer subject to this chapter, such sums as are on deposit in the fund shall first be applied to any amounts due from the employer to the fund under any provisions of this chapter.

      (b) Only upon receipt of all payments due to the fund from an employer described in paragraph (a) of this subsection, the director shall refund to the employer all deposits remaining to the employer’s credit in the fund and shall cancel any bond or letter of credit given under this section.

      (c) An employer described in paragraph (a) of this subsection shall have no interest in a deposit, bond or letter of credit prior to full compliance with this section and all provisions of this chapter. [2019 c.700 §23]

 

      Note: 657B.190 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.200 Employer assistance grants; eligibility; rules. (1) 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:

      (a) If the employer hires a temporary worker to replace an eligible employee who takes family leave, medical leave or safe leave for a period of seven or more days, a grant of up to $3,000 to apply toward the costs of hiring the worker.

      (b) A grant of up to $1,000 as reimbursement for significant additional wage-related costs incurred during a period in which an eligible employee takes leave described under paragraph (a) of this subsection.

      (2) In addition to a grant received under subsection (1)(b) of this section, an employer may receive a grant in the amount of the difference between the grant awarded and $3,000 if:

      (a) After the commencement of a period of family leave, medical leave or safe leave taken by an eligible employee, the employee extends the period of leave beyond the employee’s initial expected period of leave; and

      (b) The employer hired a temporary worker to replace the eligible employee during the employee’s period of leave.

      (3) An employer may apply for a grant under subsection (1) of this section not more than 10 times per calendar year and not more than once for each eligible employee who takes leave under ORS 657B.020.

      (4) To be eligible for a grant under this section, an employer shall provide to the Director of the Employment Department written documentation showing that the employer hired a temporary worker or that the wage-related costs incurred are due to an eligible employee’s use of family leave, medical leave or safe leave.

      (5) The grants awarded under this section shall be funded with moneys in the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430.

      (6) The director shall adopt any rules necessary to implement this section. [2019 c.700 §42]

 

      Note: 657B.200 becomes operative January 1, 2023. See section 63, chapter 700, Oregon Laws 2019.

 

EQUIVALENT PLANS

 

      657B.210 Equivalent plans, generally; rules; fee. (1)(a) 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.

      (b) 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 by an application fee not to exceed $250.

      (2) The director shall review and approve an application for a plan if the director finds that:

      (a) The plan is made available to all employees who have been continuously employed with an employer for 30 days.

      (b) The benefits afforded to employees covered under the plan are equal to or greater than the weekly benefits and the duration of leave that an eligible employee would qualify for under this chapter.

      (3) An employer may make a plan available to employees who have been employed by the employer for less than 30 days but in no event may an employer require an employee to have been employed by the employer for more than 30 days to be eligible for coverage under the plan.

      (4) Neither an employer that provides benefits under an approved plan nor an employee covered under such a plan is required to make the contributions under ORS 657B.150.

      (5)(a) An employer may assume all or a part of the costs related to a plan approved under this section.

      (b) If an employer assumes only part of the costs, the employer may deduct employee contributions from the wages of employees to finance the costs related to the plan, except that any contribution amounts deducted may not exceed the amount that an eligible employee would otherwise be required to contribute under ORS 657B.150.

      (c) Employee contributions received or retained by an employer under this subsection must be used for plan expenses and are not considered to be a part of an employer’s assets for any purpose.

      (6) Any paid sick leave earned under ORS 653.606 is in addition to the benefits made available under a plan that has been approved under this section.

      (7) An employee who takes leave pursuant to a plan approved under this section shall provide notice to an employer of such leave in the same manner as provided in ORS 657B.040.

      (8) A plan approved under this section shall remain in effect for a period of not less than one year.

      (9) Nothing in this section prohibits an employee who is otherwise eligible from applying for coverage under the program established under ORS 657B.340 or under a separate employer-offered plan that has been approved under this section.

      (10) The director shall adopt rules:

      (a) To prevent the payment of benefits in excess of 100 percent of an eligible employee’s average weekly wage to an employee who is simultaneously covered under more than one employer-offered plan or who has additional coverage under the program established under ORS 657B.340; and

      (b) That require that the benefits made available to an eligible employee who is covered under more than one plan shall be prorated under each respective plan.

      (11) An employer that offers a plan approved under this section shall:

      (a) Be subject to the same requirements provided in ORS 657B.060 and 657B.070;

      (b) Maintain all reports, information and records relating to the plan, including payroll and account records that document employee contributions and expenses, in the manner established by the director by rule; and

      (c) Provide written notice to employees that includes:

      (A) Information about benefits available under the approved plan, including the duration of leave;

      (B) The process for filing a claim to receive benefits under the plan;

      (C) The process for employee deductions used to finance the costs of the plan, if any;

      (D) An employee’s right to dispute a benefit determination in the manner determined by the director under ORS 657B.420;

      (E) The right to job protection and benefits continuation, if applicable; and

      (F) A statement that discrimination and retaliatory personnel actions against an employee for inquiring about the family and medical leave insurance program established under ORS 657B.340, giving notification of leave under the program, taking leave under the program or claiming family and medical leave insurance benefits are prohibited.

      (12) Benefits received under this section are considered wages for purposes of a wage claim under ORS chapter 652.

      (13) An employer whose application for plan approval was denied by the director under this section or terminated by the director under ORS 657B.220 may request review of the decision as provided in ORS 657B.410. [2019 c.700 §43]

 

      Note: 657B.210 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      Note: Section 62a, chapter 700, Oregon Laws 2019, provides:

      Sec. 62a. Notwithstanding the operative date specified in section 63 (1)(a) of this 2019 Act [January 1, 2022], an employer may apply to the Director of the Employment Department, in accordance with the application process established by the director under section 33 of this 2019 Act [657B.340], for approval of an employer-offered benefit plan described under section 43 of this 2019 Act [657B.210] on or after the effective date of this 2019 Act [September 29, 2019]. [2019 c.700 §62a]

 

      657B.220 Director review of benefits provided under equivalent plan; termination of noncompliant plan. (1)(a) 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.

      (b) Based on the review, the director shall determine whether the approved plan provides benefits that are equal to or greater than the benefits that would be available to eligible employees under the family and medical leave insurance program established under ORS 657B.340.

      (2) If the director determines that the approved plan does not provide benefits in compliance with requirements under ORS 657B.210 (2), the director shall terminate the plan and the employer shall be required to make employer contributions and deduct employee contributions in accordance with ORS 657B.150. [2019 c.700 §44]

 

      Note: 657B.220 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.230 Application for reapproval of plan. (1) 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.

      (2) Unless an employer has made changes to a plan that were not considered by the director in a previously approved or reapproved application, an employer need not submit an application for reapproval of the plan after expiration of the three-year period described in subsection (1) of this section. [2019 c.700 §45]

 

      Note: 657B.230 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.240 Withdrawal from plan; handling of employee deductions. (1) 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.

      (2) If an employer elects to withdraw from an approved plan, any deductions made from the wages of an employee that remain in possession of the employer upon the employer’s withdrawal of the plan shall be disposed of as determined by the director. [2019 c.700 §46]

 

      Note: 657B.240 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.250 Portability of benefits and retention of eligibility status between jobs. (1) 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.

      (2)(a) 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 insurance benefits under the program established under ORS 657B.340.

      (b) Notwithstanding ORS 657B.210 (3), an employee who was eligible for benefits under a plan approved under ORS 657B.210 is automatically eligible for benefits under a plan that is offered by a new employer and that has been approved under ORS 657B.210.

      (c) For purposes of this subsection, an employee has ceased to be covered by an approved plan if:

      (A) The employee takes family leave, medical leave or safe leave after the employee has separated from employment with an employer that offered a plan approved under ORS 657B.210;

      (B) The employer has withdrawn from the plan as provided under ORS 657B.240;

      (C) The Director of the Employment Department has terminated the plan under ORS 657B.220; or

      (D) The director finds that the employer is insolvent or has discontinued doing business in this state. [2019 c.700 §47]

 

      Note: 657B.250 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.260 Successor in interest required to continue offering approved plan to eligible employees until withdrawal of plan; request for withdrawal. (1) 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 continues its operation without substantial reduction of personnel resulting from the acquisition, must continue to be offered to eligible employees and the successor in interest may not withdraw the plan without a specific request for withdrawal in a manner prescribed by the Director of the Employment Department by rule.

      (2) Within 90 days following the date of an acquisition described in subsection (1) of this section, a successor in interest to an employer may terminate a plan that was approved under ORS 657B.210 and that was in effect on the date of acquisition without a request to withdraw the plan, provided the successor in interest provides notice to the director and all employees of the employer in a manner prescribed by the director by rule. [2019 c.700 §48]

 

      Note: 657B.260 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

COLLECTIONS; RECOVERY OF IMPROPER BENEFIT PAYMENTS

 

      657B.280 Delinquent contributions and improper benefit payments as liens on real or personal property; foreclosure. (1) This section applies to:

      (a) An employer that fails to remit to the Department of Revenue any amount of contributions due under ORS 657B.150;

      (b) An individual liable to repay any amount of benefits paid under this chapter to which the individual was not entitled; and

      (c) A person liable under ORS 657B.330 for amounts due under this chapter.

      (2) If a judgment or final administrative order is rendered in favor of the Director of the Employment Department for amounts described in subsection (1) of this section, the amounts shall be a lien in favor of the director upon all property, whether real or personal, belonging to the employer, individual or person.

      (3) The lien shall be perfected and attach:

      (a) To real and personal property located within the county, upon the recording of a warrant, as provided in ORS 657B.300, with the clerk of the county in which the property is located.

      (b) To personal property wherever located within the state, upon:

      (A) The recording of a warrant, as provided in ORS 657B.300, with the clerk of any county; and

      (B) The filing of a copy of the warrant with the Secretary of State as provided in ORS 657B.290.

      (4) The lien created by this section may be foreclosed by a suit in the circuit court in the manner provided by law for the foreclosure of other liens on real or personal property. [2019 c.700 §17]

 

      Note: 657B.280 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.290 Filing of lien statement or warrant. (1) 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.

      (2) When a copy of the statement of lien or the warrant is filed with the Secretary of State in compliance with subsection (1) of this section, such filing shall have the same effect with respect to personal property as if the copy of the statement of lien or the warrant had been duly recorded with the county clerk in each county of this state.

      (3) A copy of the statement of lien or the warrant filed with the Secretary of State shall be filed and indexed by the Secretary of State in the same manner as provided under ORS 79.0501 for the filing and indexing of financing statements. [2019 c.700 §18]

 

      Note: 657B.290 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.300 Alternative remedies for collection of amounts liable to be repaid; warrants; execution by sheriff. (1) 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 executing the warrant. The Employment Department shall mail or deliver a copy of the warrant to the last known address of the employer, individual or person.

      (2) At any time after issuing a warrant under this section, the department may record the warrant in the County Clerk Lien Record of any county of this state. Recording of the warrant has the effect described in ORS 205.125.

      (3) After recording a warrant under this section, the director may direct the sheriff of the county in which the warrant is recorded to levy upon and sell any real and personal property, and levy upon any currency, belonging to the employer, individual or person and found within that county. The proceeds or currency shall be applied against the amount reflected in the warrant and the sheriff’s costs of executing the warrant.

      (4) The sheriff shall proceed on the warrant in the same manner prescribed by law for executions issued against property pursuant to a judgment and is entitled to the same fees as provided for executions issued against property pursuant to a judgment. The fees of the sheriff shall be added to and collected as a part of the warrant liability.

      (5)(a) The director may direct the warrant to any agent and authorize the agent to collect the amount reflected in the warrant.

      (b) In the execution of the warrant the agent has all of the powers conferred by law upon sheriffs but is entitled to no fee or compensation in excess of actual expenses incurred in the execution.

      (6) Amounts collected pursuant to this section shall be deposited in the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430. [2019 c.700 §19]

 

      Note: 657B.300 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.310 Release, compromise or satisfaction of lien. (1)(a) 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.

      (b) Upon filing of the notice under this subsection, the property against which the lien is claimed shall be released from the lien.

      (2) The director may include in the amount received for the release of the lien any costs incurred by the director in collecting the amounts due.

      (3) Amounts collected pursuant to this section shall be deposited in the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430. [2019 c.700 §20]

 

      Note: 657B.310 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.320 Delinquent contributions; interest; civil penalties; collection by civil action; settlement. (1) 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, the unpaid amount, together with interest and penalties, shall be collected by the Director of the Employment Department in a civil action against the employer brought in the name of the director.

      (2)(a) Judgment rendered on a civil action brought under subsection (1) of this section in favor of the director shall bear interest at the rate provided in subsection (3) of this section.

      (b) An employer’s compliance with the requirements of ORS 657B.150 shall date from the time that contributions were collected from the employer.

      (c) The amount of contributions collected from an employer, together with interest and penalties, shall be paid into the fund.

      (3)(a) Interest upon any amounts due from an employer shall be paid and collected at the rate of one and one-half percent per month from the date prescribed for the payment to the fund. In computing the interest, a fraction of a month shall be counted as a full month.

      (b) Interest shall be paid at the same time contributions are required to be paid by the employer to the fund.

      (4) If an employer fails to pay contributions required by ORS 657B.150 at the time prescribed by the director, the employer shall be in default.

      (5) If an employer that is in default with respect to payment of contributions fails to make payment within 10 days after written demand has been made by the director, the employer shall be subject to a penalty of 10 percent of the amount of the contributions. A demand for payment shall be deemed to have been made when deposited in the mail addressed to the employer at the employer’s last known address of record with the director.

      (6) If any part of a deficiency is due to fraud with intent to avoid payment of contributions to the fund, then 50 percent of the total amount of the deficiency, in addition to the deficiency, shall be assessed, collected and paid, in the same manner as if it were a deficiency, and deposited in the fund.

      (7) Civil actions brought in the name of the director under this section to collect contributions, interest or penalties from an employer shall be entitled to preference upon the calendar over all civil cases that involve only private parties.

      (8)(a) Notwithstanding the provisions of this section, the director may agree to accept from an employer or former employer with a delinquent account any amount the director finds reasonable under the circumstances as consideration in settlement of the full amount of contributions, interest or penalties due if the director finds that:

      (A) The total interest collectible on the delinquent account is in excess of 25 percent of the principal;

      (B) The employer or former employer no longer conducts an active business and has insufficient net assets to pay the full amount of all contributions, interest or penalties due; and

      (C) The employer or former employer can pay some but not all of the delinquent amounts.

      (b) Whenever a settlement agreement is made pursuant to paragraph (a) of this subsection, a written record signed by the director shall be maintained in the files of the director. Such records shall set forth:

      (A) The name of the employer or former employer against whom the liability was assessed;

      (B) The amount of the assessed liability;

      (C) The amount of the liability paid;

      (D) The amount of the liability canceled or waived; and

      (E) A sworn statement of the employer or former employer setting forth the complete financial responsibility of the employer or former employer and containing a full disclosure of all matters bearing upon the ability of the employer or former employer to pay the full amount of the liability assessed.

      (9) The director shall file a full and true copy of the record of each settlement agreement with the Secretary of State as a public record.

      (10) Any amount agreed to in settlement of the director’s claims on behalf of the fund pursuant to subsection (8)(a) of this section shall be first credited to the contributions due from the employer or former employer until the principal amount of contributions due has been satisfied and shall be deposited in the fund. [2019 c.700 §24]

 

      Note: 657B.320 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.330 Liability of certain officers, members, partners or employees for amounts in default. (1) This section applies to an individual who is one or more of the following:

      (a) An officer or employee of a corporation;

      (b) A member or employee of a limited liability company; or

      (c) A partner in or employee of a limited liability partnership.

      (2) In the case of default by an employer subject to ORS 657B.320, an individual described in subsection (1) of this section who is under a duty to perform the actions required of employers under ORS 657B.150 shall be personally liable for amounts due under ORS 657B.150. More than one individual may be jointly and severally liable under this section for amounts due.

      (3) If the Director of the Employment Department determines that an amount is due under this section, the director shall issue a notice of assessment to the individual liable under this section by mail to the individual’s last known address of record with the director.

      (4) If the director has reason to believe that the individual liable under this section is insolvent, the director may issue a jeopardy assessment as provided under ORS 657B.370 (4).

      (5) Amounts assessed under this section may be reviewed in the manner provided by ORS 657B.370 (5). [2019 c.700 §25]

 

      Note: 657B.330 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

EMPLOYMENT DEPARTMENT; ADMINISTRATION

 

(Generally)

 

      657B.340 Family and medical leave insurance program; administration of program; rules; state agency assistance. (1) 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.

      (2) Not later than September 1, 2021, the director shall adopt rules that are necessary to establish the program under subsection (1) of this section, including but not limited to rules that:

      (a) Establish an outreach plan for the program to receive input from, and disseminate information to, employers and eligible employees.

      (b) Establish a process by which employers may apply for approval of an employer-offered benefit plan under ORS 657B.210.

      (c) Establish alternatives by which an employer may determine a benefit year period, including on a calendar year and noncalendar year basis.

      (3) The director may enter into interagency agreements to perform the duties and functions necessary to implement and administer this chapter.

      (4) Whenever possible, the director shall use existing employer and public infrastructure to maintain records, conduct outreach and facilitate contributions made to the program.

      (5) All agencies of state government, as defined in ORS 174.111, shall, upon request of the director, assist in the performance of the director’s duties under this chapter, including but not limited to outreach, technical assistance and training. [2019 c.700 §33]

 

      Note: Section 62, chapter 700, Oregon Laws 2019, provides:

      Sec. 62. The Director of the Employment Department shall establish the family and medical leave insurance program under section 33 of this 2019 Act [657B.340] such that eligible employees as defined in section 2 of this 2019 Act [657B.010] and employers may begin making contributions to the program no later than January 1, 2022. [2019 c.700 §62]

 

      657B.350 Third party administrator; agreements; oversight by director. (1) 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.

      (2) Every service provided by a third party administrator pursuant to an agreement entered into under this section is subject to the same requirements provided under this chapter as if the services had been provided by the director.

      (3) A third party administrator that enters into an agreement with the director under this section is subject to oversight by the director.

      (4) Costs incurred by the director pursuant to an agreement with a third party administrator entered into under this section may not be recovered by an increase in the contribution rate determined by the director under ORS 657B.150. [2019 c.700 §34]

 

      657B.360 Determining number of employees employed by employer; replacement workers; rules. (1) 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 in the 12-month period immediately preceding the date on which the determination is made.

      (2) A replacement worker who is hired to temporarily replace an eligible employee during a period of family leave, medical leave or safe leave shall not be counted as an employee for purposes of determining the number of employees employed by an employer. [2019 c.700 §35]

 

      657B.370 Computation and assessment of employer contributions and interest; jeopardy assessments; application for hearing. (1)(a) 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 by mail sent to the employer’s last known address of record with the director.

      (b) Notwithstanding subsection (5) of this section, if the report is subsequently found to be incorrect, additional assessments may be made.

      (2) If an employer fails to file a report when required by the director for the purpose of determining the amount of contributions due under ORS 657B.150, the director may make an estimate based upon any information of the amount of the wages of the employer’s employees for the period or periods for which no report was filed and upon the basis of the estimate shall compute and assess the amount of contributions payable by the employer. Written notice of the assessment to the employer shall be mailed to the employer’s last known address of record with the director.

      (3) If the director is not satisfied with a report made by an employer for the purpose of determining the amount of contributions due under ORS 657B.150, the director may compute the amount required to be paid upon the basis of facts contained in the report or of any information obtainable and may make an assessment of the amount of the deficiency. Written notice of a deficiency assessment to the employer shall be mailed to the employer’s last known address of record with the director.

      (4)(a) If the director has reason to believe that an employer or an individual liable under ORS 657B.330 is insolvent, or that the collection of any contributions will be jeopardized by delaying collection, the director may make an immediate assessment of the estimated amount of accrued contributions, noting upon the assessment that it is a jeopardy assessment levied under this subsection, and may proceed to enforce collection immediately.

      (b)(A) Interest shall not begin to accrue on contributions collected under paragraph (a) of this subsection until the due date.

      (B) Court costs may not be charged against an employer or an individual liable under ORS 657B.330 on any action to enforce collection commenced prior to the due date.

      (c) In levying an assessment under paragraph (a) of this subsection, the director may demand a bond or deposit of such security as is necessary to ensure collection of the amount of the assessment.

      (d) Written notice of an assessment to an employer or an individual liable under ORS 657B.330 shall be mailed to the employer’s or individual’s last known address of record with the director.

      (5)(a) All assessments provided for in this section shall finally fix the amount of contributions due and payable unless:

      (A) The employer or the individual liable under ORS 657B.330 applies to the director for a hearing within 20 days after the mailing of the notice of assessment; or

      (B) The director reviews the assessment prior to a decision of the administrative law judge pursuant to a hearing.

      (b) An employer or person liable under ORS 657B.320 and 657B.330 that fails to apply for a hearing upon an assessment within the time provided or, having applied, fails to appear and be heard after due notice of the hearing, is precluded from raising any defense to any action, suit or proceeding brought by the director for the recovery of contributions based upon the assessment that could have been raised in the hearing.

      (c) The amount of contributions assessed under this section shall be subject to the penalties and interest provided by ORS 657B.320 and 657B.330. [2019 c.700 §28]

 

      Note: 657B.370 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.380 Advisory committee; membership; terms. (1) 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.

      (2)(a) The advisory committee shall consist of nine members appointed by the director as follows:

      (A) A representative of the Employment Department.

      (B) Four members who represent employees.

      (C) Four members who represent employers, at least one of whom represents employers that employ fewer than 25 employees.

      (b) Members shall serve for a term of two years and may be reappointed. If there is a vacancy for any cause, the director shall make an appointment to become immediately effective for the unexpired term.

      (c) The representative of the department shall serve as chairperson of the advisory committee.

      (3) The advisory committee shall advise and make recommendations to the director regarding issues related to the program, including but not limited to:

      (a) Implementation;

      (b) Administration; and

      (c) Rulemaking.

      (4) Members of the advisory committee are not entitled to compensation but may be reimbursed for actual and necessary travel or other expenses incurred in the performance of their official duties. The director shall pay the expenses out of funds appropriated to the department under section 59, chapter 700, Oregon Laws 2019.

      (5) All agencies of state government, as defined in ORS 174.111, are directed to assist the advisory committee in the performance of the duties of the advisory committee and, to the extent permitted by laws relating to confidentiality, to furnish information and advice that the members of the advisory committee consider necessary to perform their duties. [2019 c.700 §36]

 

      657B.390 Employment records; inspection. (1) 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.

      (2) The Director of the Employment Department may inspect the payroll and employment records of employers for the purpose of administering this chapter. Employers must provide the director with all pertinent payroll and employment records upon request.

      (3) When an employment agency is acting as an employer, the requirements under subsections (1) and (2) of this section shall be the responsibility of the employment agency. [2019 c.700 §37]

 

      Note: 657B.390 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.400 Confidentiality of information. (1) All information in the records of the Employment Department or a third party administrator pertaining to the administration of this chapter:

      (a) Is confidential and for the exclusive use and information of the Director of the Employment Department in administering this chapter;

      (b) May not be used in any court action or in any proceeding pending in the court unless the director or the State of Oregon is a party to the action or proceeding or unless the action or proceeding concerns the establishment, enforcement or modification of a support obligation and support services are being provided by the Division of Child Support of the Department of Justice or the district attorney pursuant to ORS 25.080; and

      (c) Is exempt from disclosure under ORS 192.311 to 192.478.

      (2) At the discretion of the director and subject to an interagency agreement, the director may disclose information to a public official in the performance of the public official’s official duties administering or enforcing laws within the public official’s authority and to an agent or contractor of a public official. The public official shall agree to assume responsibility for misuse of the information by the public official’s agent or contractor.

      (3) At the discretion of the director, the director may disclose information to a contractor pursuant to a contract for actuarial services. The contractor shall agree to assume responsibility for misuse of the information by the contractor’s agent.

      (4) At the discretion of the director, the director may disclose information to an employee or officer within any division of the department as necessary to conduct research, compile aggregate data from the information received and any other purpose deemed necessary by the director to assist the director in carrying out the duties under this chapter or other duties under ORS chapter 657. [2019 c.700 §38]

 

(Appeals)

 

      657B.410 Appeals process, generally; process subject to judicial review. (1) The Director of the Employment Department shall establish a process by which:

      (a) An employer may request a hearing to obtain review of a final decision of the director regarding approval or denial of an employer’s application for approval of a plan under ORS 657B.210.

      (b) A covered individual may request a hearing to obtain review of a final decision of the director regarding:

      (A) Approval or denial of a claim submitted to the director for payment of family and medical leave insurance benefits;

      (B) The weekly benefit amount payable to a covered individual as determined under ORS 657B.050; or

      (C) Disqualification from the receipt of benefits including liability or repayment of benefits as determined under ORS 657B.120.

      (2) Notwithstanding ORS 183.315, the process established by the director under this section shall comply with provisions for a contested case under ORS chapter 183 and is subject to judicial review as provided in ORS 183.482. [2019 c.700 §31]

 

      Note: 657B.410 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      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. [2019 c.700 §32]

 

(Reports and Reviews)

 

      Note: Sections 50, 51 and 63 (1)(b), chapter 700, Oregon Laws 2019, provide:

      Sec. 50. Review of department expenses. Beginning January 1, 2023, and not more than once each year for three consecutive calendar years thereafter, the Director of the Employment Department shall conduct a review of the expenses incurred by the Employment Department in reviewing plans for approval under section 43 of this 2019 Act [657B.210], including an analysis of adequacy of the application fee determined by the department and administrative expenses related to request for review of determinations regarding approval or denial of applications as provided under section 31 of this 2019 Act [657B.410]. [2019 c.700 §50]

      Sec. 51. Director of Employment Department to report to legislature on progress of program implementation. (1)(a) The Director of the Employment Department shall submit to the interim committees of the Legislative Assembly related to workforce or business and labor, in the manner provided in ORS 192.245, reports summarizing the Employment Department’s progress toward implementing the family and medical leave insurance program described in sections 1 to 51 of this 2019 Act [ORS chapter 657B].

      (b) The director shall submit the first report not later than February 15, 2020, and a second report not later than September 1, 2021.

      (2) Beginning on July 1, 2023, and once during each of the following three consecutive biennia, the director shall, to the extent that the director has acquired the information, submit to the interim committees of the Legislative Assembly related to workforce or business and labor, in the manner provided in ORS 192.245, a report that includes:

      (a) The total number of claims submitted under section 12 of this 2019 Act [657B.090].

      (b) The number of claims allowed under section 13 of this 2019 Act [657B.100] and the number of claims denied under section 13 of this 2019 Act.

      (c) The total amount of benefits paid out of the Paid Family and Medical Leave Insurance Fund established under section 39 of this 2019 Act [657B.430].

      (d) Data regarding the use of moneys in the fund, the solvency of the fund and the balance of the fund.

      (e) The amount of contributions collected under section 16 of this 2019 Act [657B.150].

      (f) The number of applications for plan approval submitted under section 43 of this 2019 Act [657B.210], including the number of plans approved and the costs the department incurred in reviewing such applications.

      (g) The number of applications received by the department for employer assistance and the total amounts awarded in grants under section 42 of this 2019 Act [657B.200].

      (h) The director shall include in the reports described in this subsection any recommendations made by the advisory committee under section 36 of this 2019 Act [657B.380]. [2019 c.700 §51]

      Sec. 63. (1)(b) Sections 3 to 7, 9, 10, 12, 13, 15, 42 and 50 of this 2019 Act become operative on January 1, 2023. [2019 c.700 §63(1)(b)]

 

FUNDS

 

      657B.430 Paid Family and Medical Leave Insurance Fund. (1) 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.

      (2) The fund consists of moneys deposited in the fund from contributions made under ORS 657B.150 and from penalties, fees, revenues and all other amounts deposited in or credited to the fund. Interest earned by the fund shall be credited to the fund.

      (3) Moneys in the fund are continuously appropriated to the Director of the Employment Department and may be used solely to carry out the purposes set forth in this chapter, including the payment of administrative costs and expenses that the director incurs in carrying out the provisions of this chapter. [2019 c.700 §39]

 

      Note: Section 60, chapter 700, Oregon Laws 2019, provides:

      Sec. 60. When the Employment Department determines that moneys in sufficient amount are available in the Paid Family and Medical Leave Insurance Fund established under section 39 of this 2019 Act [657B.430], but in no event later than January 1, 2023, the department shall reimburse the General Fund, without interest, in an amount equal to the amount from the General Fund appropriated as provided in section 59 of this 2019 Act. [2019 c.700 §60]

 

MISCELLANEOUS PROVISIONS

 

      657B.440 Employer required to provide notice advising employees of rights and duties. (1) 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:

      (a) The right of an eligible employee to claim and receive family and medical leave insurance benefits under this chapter;

      (b) The procedure for filing a claim for benefits under ORS 657B.090;

      (c) That an eligible employee must provide notice to an employer before the employee commences leave, as required under ORS 657B.040, and a description of the penalties for failure to comply with the notice requirements;

      (d) The right of an eligible employee to job protection and benefits continuation under ORS 657B.060;

      (e) The right of an eligible employee to appeal a decision or determination made by the director under ORS 657B.410;

      (f) That discrimination and retaliatory personnel actions against an employee for inquiring about the family and medical leave insurance program established under ORS 657B.340, giving notification of leave under the program, taking leave under the program or claiming family and medical leave insurance benefits are prohibited;

      (g) The right of an eligible employee to bring a civil action or to file a complaint for violation of ORS 657B.060 or 657B.070; and

      (h) That any health information related to family leave, medical leave or safe leave provided to an employer by an employee is confidential and may not be released without the permission of the employee unless state or federal law or a court order permits or requires disclosure.

      (2) A notice provided to an employee under this section must be in the language the employer typically uses to communicate with the employee.

      (3) The director shall make available to employers a model notice that meets the requirements of this section. [2019 c.700 §8]

 

      Note: 657B.440 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      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. [2019 c.700 §49a]

 

      Note: 657B.460 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      Note: Section 49, chapter 700, Oregon Laws 2019, provides:

      Sec. 49. Reopening or renegotiation of collective bargaining agreement. Nothing in sections 1 to 51 of this 2019 Act [ORS chapter 657B] requires the reopening or renegotiation of a collective bargaining agreement entered into before the effective date of this 2019 Act [September 29, 2019] prior to the date on which the agreement expires. [2019 c.700 §49]

 

      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. [2019 c.700 §61]

 

      Note: 657B.470 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      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 therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      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. [2019 c.700 §40]

 

PENALTIES

 

      657B.900 Criminal penalties. (1) In addition to any penalties otherwise prescribed under this chapter, violation of any provision of this chapter is a Class A misdemeanor.

      (2) 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 respectively had knowledge or in the proper exercise of their duties ought to have had knowledge.

      (3) Subject to ORS 153.022, willful violation of this chapter or of any order issued or rule adopted under this chapter, the violation of which is made unlawful or the compliance with which is required under this chapter, and for which a penalty is neither prescribed in this section nor provided by any other applicable statute, is a Class C misdemeanor. Each day the violation continues is considered a separate offense. [2019 c.700 §30]

 

      Note: 657B.900 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.910 Penalty when employer fails to file contribution reports or pay contributions when due; notice of failure; waiver. (1) 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.

      (2) If, prior to September 1 of each year, an employer has failed to file all required reports and pay all contributions due in that year under ORS 657B.150, the employer shall pay a penalty equal to one percent of the wages of the employer’s employees in the preceding calendar year.

      (3)(a) On or before October 20 of each year, the director shall assess the penalty provided in subsection (2) of this section and send written notification of the assessment to the employer’s last known address.

      (b) Notwithstanding paragraph (a) of this subsection, the director may waive the penalty for good cause if the employer has filed the required reports and payments.

      (4) On or before November 10 following a penalty assessment under subsection (3) of this section, the employer that is assessed the penalty may submit a written request to the director that the penalty be waived. The request must contain the specific reasons for the failure to file the required reports or payments prior to September 1.

      (5)(a) If the request for waiver of the penalty is denied, the director shall send written notification of the denial to the employer at the employer’s last known address. The decision denying the request shall become final unless within 20 days from the date on which the notification of the decision is sent to the employer, the employer files a written request for a hearing that states the reasons for the request.

      (b) Hearings, decisions and reconsiderations under this section shall be conducted in accordance with rules adopted by the director.

      (c) Judicial review of an order assessing a penalty under this section shall be as provided for review of orders in contested cases under ORS chapter 183, except that the petition must be filed within 20 days after the issuance of the order of the director.

      (6) The penalty provided in subsection (2) of this section shall be collected in accordance with the provisions of ORS 657B.280, 657B.290, 657B.300 and 657B.310, and any amounts collected pursuant to this subsection shall be paid to the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430. [2019 c.700 §22]

 

      Note: 657B.910 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

 

      657B.920 Penalty when employer fails to file reports; amount of penalty; request for deletion of penalty. (1) 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 employer that a subsequent failure to file a report could result in the imposition of a late filing penalty.

      (2) If an employer, without good cause, fails to file a timely report within the three-year period immediately following a written warning sent pursuant to subsection (1) of this section, the employer may be assessed a late filing penalty in addition to other amounts due.

      (3) Except as provided in subsection (4) of this section, a penalty assessed under subsection (2) of this section shall be 0.02 percent of the wages of the employer’s employees rounded to the nearest $100.

      (4) A penalty assessed under subsection (2) of this section for an employer who has no employees during the calendar quarter to which a quarterly report relates shall be as follows:

      (a) $10 for the first report filed late within the three-year period immediately following a written notice sent pursuant to subsection (1) of this section.

      (b) $25 for the first report filed late within the three-year period immediately following the assessment of a penalty under subsection (2) of this section.

      (c) $50 for the second report filed late within the three-year period immediately following the assessment of a penalty under subsection (2) of this section.

      (d) $100 for the third or subsequent report filed late within the three-year period immediately following the assessment of a penalty under subsection (2) of this section.

      (5)(a) A penalty assessed under this section is final unless, within 20 days after the date the assessment is mailed to the last known address of the employer, the employer requests that the penalty be deleted. The request must be in writing and state the reason why the report was filed late.

      (b) If the director determines that the employer had good cause for filing the report late, the penalty shall be deleted. If it is determined there was not good cause for filing the report late, the request for deletion shall be denied.

      (6)(a) A determination denying the request for deletion is final unless, within 20 days after the date the determination is mailed to the last known address of the employer, the employer files a request for hearing. The request for hearing must be in writing and state the reasons why the determination should not be affirmed.

      (b) Judicial review of the determination of denial shall be as provided for review of orders in contested cases in ORS chapter 183, except that the request for hearing must be filed within 20 days after the issuance of the determination of the director or a designated representative. [2019 c.700 §27]

 

      Note: 657B.920 becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.

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