If you have employees in Oregon, you’re managing two statewide programs: Paid Leave Oregon (PLO) and the Oregon Sick Time law. Add recent updates and Portland-specific thresholds, and it’s easy to miss something. Here’s what employers need to know to stay compliant in 2025. 

1) Oregon Sick Time 

• Accrual & Use: Employees earn 1 hour for every 30 hours worked, up to 40 hours per year. Employers may front-load instead of accruing. 
• Paid vs. Unpaid: Sick time is paid if you have 10+ employees statewide or 6+ in Portland; otherwise, it’s protected but unpaid. 
• Eligibility: Employees can use accrued time after 90 days of employment. 
• Covered Uses: Illness, preventive care, family member care, bereavement, or safe-time needs (domestic violence, stalking). 
• Carryover: Up to 40 hours can carry into the next year. 
• Note: Employers may set a minimum usage increment (up to 4 hours) only if smaller increments cause hardship and must notify employees if doing so. 

2) Paid Leave Oregon (PLO) 

• What It Provides: Up to 12 weeks of paid family, medical, or safe leave (14 for some pregnancy-related cases) with job protection after 90 days of employment. 
• Funding (2025): Total contribution rate remains 1% of wages up to $176,100. 
• Employees pay 60%. 
• Large employers (25+ employees) pay 40%. 
• Small employers (<25) don’t pay the employer share but must still withhold and remit the employee portion. 
• Benefits: Wage replacement is based on income and the state’s average weekly wage. The maximum weekly benefit adjusts mid-year (check the state site for the updated amount). 
• New for 2025: Employees may “true up” their pay by using accrued paid leave (like vacation or PTO) to supplement PLO benefits. 

3) OFLA + PLO Coordination 

Effective July 1, 2024, Oregon’s SB 1515 law changed how OFLA and PLO interact. Employees can’t use both programs at the same time for the same qualifying event. Each program now covers distinct types of leave, so update your policies, forms, and training accordingly. 

Compliance Quick List 

• Update your handbook – Include accrual, carryover, eligibility, and increment rules for Sick Time, plus current PLO details.
• Tune payroll systems – Apply the 2025 1% rate with the 60/40 split and wage cap; ensure employee contributions are remitted quarterly.
• Train managers – Reinforce PLO job protection after 90 days and new OFLA/PLO coordination rules.
• Refresh employee communications – Share updated contribution rates, benefit details, and state notice requirements. 

Bottom Line 

Oregon’s leave landscape is evolving fast. Staying current with PLO rates, Sick Time rules, and OFLA coordination helps you stay compliant and your team supported. 

At Journey Payroll & HR, we help employers navigate every detail—so you can focus on running your business with confidence.