Oregon Sick Leave Law: Exempt Employees Included?

Oregon's sick leave law, which came into effect on January 1, 2016, mandates that all private employers with at least one employee in the state must provide sick leave. This law applies to all full-time, part-time, temporary, and seasonal employees, with certain exceptions. While the law requires employers with 10 or more employees (or 6 or more in Portland) to provide paid sick leave, smaller employers may offer unpaid sick leave. This paragraph introduces the topic of whether Oregon's sick leave law applies to exempt employees, and the following discussion will delve into the specifics of the law and its applicability to different worker classifications.

Accrual and carryover of sick leave

In Oregon, employees accrue one hour of sick time for every 30 hours worked. This accrual starts on the first day of employment and is applicable to both full-time and part-time employees. Employees can start using their accrued sick time on the 91st calendar day of employment.

Employers can choose to stop adding sick time hours once the accrued 40-hour minimum is reached, or they can continue if their sick time policy is more generous. Using the accrual method, employees can carry over up to 40 unused hours from the previous year, resulting in a total of 80 sick hours in one calendar year. However, carry-over is not mandatory.

Sick leave accruals are limited to 80 earned hours, with a maximum carry-over of 40 hours per calendar year. Employees who are rehired within 180 days of separation will have their previously accrued unused sick leave restored.

Paid vs. unpaid sick leave

In the state of Oregon, the provision of paid or unpaid sick leave depends on the number of employees a business has and its location within the state.

Paid Sick Leave

Employers in Oregon with 10 or more employees, or those in Portland with six or more, must provide paid sick leave. This paid sick leave entitlement is calculated at a rate of one hour of sick leave for every 30 hours worked, up to a maximum of 40 hours per year. This time can be used for various purposes, including recovering from illness or injury, seeking medical treatment, and caring for family members.

Unpaid Sick Leave

On the other hand, smaller employers in Oregon with less than 10 employees, or those in Portland with fewer than six, are not required to provide paid sick leave. Instead, they can offer unpaid sick leave. While this time is unpaid, employees are still protected from being fired or punished for taking it.

It is important to note that regardless of whether an employee receives paid or unpaid sick leave, they may be eligible to receive pay during their time off from Oregon's state fund through Paid Leave Oregon. Additionally, employers may require employees to wait until their 91st day of employment before allowing them to use their accrued sick leave.

Employee eligibility

Oregon's Paid Sick Time Law, which came into effect on January 1, 2016, applies to all full-time, part-time, temporary, and seasonal employees who provide services to an employer. This includes employees who work in Oregon remotely for out-of-state companies. The law mandates that employees accrue one hour of sick leave for every 30 hours worked, or a minimum of 40 hours of sick leave per year.

There are some exceptions to the rule. Employees who are exempt from Oregon's sick leave law include those receiving sick pay under the Family and Medical Leave Act (FMLA), state or federally administered work training program participants, work-study program participants, those employed by their parents, spouse, or child, and Railroad Unemployment Insurance Act-exempt workers.

Employees become eligible to use sick time after working for their employer for at least 90 days. Employers may also choose to provide sick leave upfront, granting a minimum of 40 hours of sick leave at the beginning of each 12-month period. This is known as the front-loaded method. Alternatively, employers can allow employees to accrue sick leave over time, which eliminates the need for pro-rating as hours accumulate based on hours worked. This is called the accrual method.

Employers with 10 or more employees, or 6 or more employees if located in Portland, must provide paid sick leave. Smaller employers are required to provide unpaid sick leave. Employers are generally required to allow employees to carry over up to 40 hours of sick leave from one year to the next, but they are not obligated to pay out accrued and unused sick time when an employee leaves their job.

Reasons for taking sick leave

Oregon's sick leave law applies to almost all employees in the state, including full-time, part-time, and temporary workers. Exemptions include federal employees, independent contractors, certain work-study students, railroad workers, and individuals employed by their parent, spouse, or child.

Recovering from Illness or Injury

Employees can take sick leave to recover from a physical or mental illness or injury. This includes seeking medical diagnosis, treatment, or preventive care.

Caring for Family Members

Sick leave can be used to care for a family member who is ill, injured, or needs medical diagnosis, treatment, or preventive care. This includes a spouse, registered domestic partner, child, parent, grandchild, or grandparent.

Bonding with a New Child

Employees can take time off to bond with a newborn, newly adopted child, or newly placed foster child under the age of 18.

Dealing with the Death of a Family Member

Sick leave can be taken to grieve and attend the funeral of a family member.

Public Health Emergencies

During a public health emergency, such as the COVID-19 pandemic, employees can use sick leave if their workplace or their child's school or childcare provider is closed by order of a public official.

Domestic Violence, Harassment, Sexual Assault, or Stalking

Employees can take time off to address certain non-medical needs if they or their minor child or dependent are victims of domestic violence, a sexual offense, or stalking. This includes seeking medical treatment, legal help, counseling, or other services.

Emergency Evacuation

If an employee's workplace or home address is subject to an emergency evacuation order issued by a public official, they may take sick leave.

Poor Air Quality or Extreme Heat

When a public official determines that the air quality index or heat index is at an unsafe level, employees can take sick leave if continued exposure would jeopardize their health.

Other Health-Related Reasons

Sick leave can also be taken when an employee presents a public health risk, as determined by a public health official or healthcare provider. Additionally, if an employer is required to exclude an employee from the workplace for health reasons, the employee may use their sick leave.

Employer requirements

The Oregon Paid Sick Time Law has several requirements that employers must follow regarding the notification, education, and provision of sick time to employees. These requirements ensure that employees are informed of their rights and are able to take advantage of their allotted sick time.

Firstly, employers must post an Oregon Sick Time Poster or a similar notice in a visible, public space where employees can easily access the information. This notice should outline employees' basic sick time rights under Oregon law. An official poster is also available in Spanish for workplaces where that is the primary language.

Secondly, employers must determine whether the minimum 40 hours of protected sick time provided to employees is paid or unpaid. This is based on the employer's location and number of employees. Paid sick time off must be provided by employers with 10 or more employees in Oregon or 6 or more employees in Portland. The calculation is based on the daily average number of employees over any 20-week period in the previous year.

For employers who offer unpaid sick time off, they may require employees to wait until their 91st day of employment to start using this benefit. Additionally, as of September 3, 2023, employees with access to unpaid sick time may still be eligible for pay during that time off through Oregon's state fund, Paid Leave Oregon. It is important to note that employers cannot mandate that employees exhaust their paid time off before accessing Paid Leave Oregon.

Furthermore, employers are required to provide employees with quarterly written notifications of their accumulated sick time balance, including both used and unused hours. This information can be posted in multiple places, such as employee portals, payroll software, paychecks, or pay stubs, to ensure accessibility.

Oregon's paid sick time law offers employers two options for structuring their sick time off policies: the accrual method and the front-loaded method. The accrual method is calculation-based, where eligible employees earn one hour of sick time for every 30 hours worked. This method begins on the employee's first day, and employers can choose to stop adding hours after the 40-hour minimum is reached or continue if their policy is more generous. Up to 40 unused hours can be carried over into the next year, resulting in a potential total of 80 sick hours annually.

On the other hand, the front-loaded method grants full-time employees 40 hours of sick time upfront per 12-month year. Prorating may or may not be necessary, depending on the tracking method used. Part-time employees are generally not eligible for this calculation method, as the law mandates loading 40 hours at the beginning of the year.

Employers must also ensure they are calculating sick time pay rates accurately. Employees with one hourly rate of pay should receive that rate for their sick time. Employees with multiple rates of pay should receive either a weighted average of their regular rates or the wages they would have earned during the period of sick leave. Salaried employees' sick time pay is calculated by dividing their total wages for the pay period by the total number of hours worked, typically 40 hours. Commission, piece-rate, and quantity basis paid employees must receive at least the minimum wage for their sick time.

Lastly, employers should be aware of the consequences of non-compliance with Oregon's Sick Time Law. Employees can file formal complaints against employers who fail to uphold these laws or retaliate against them for using sick time. The Oregon Board of Labor and Industry can issue civil penalties of up to $1,000 per violation, in addition to fees paid to employees for lost wages and sick pay. Non-compliance can also lead to negative press and a dip in staff morale, impacting talent scouting and productivity.

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