Category: Upcoming Changes and Reminders

Oregon Updates Minimum and Maximum Weekly Benefits for Paid Leave and Unemployment Insurance

Changes are coming this summer for Oregon employers and employees alike. Starting in July, the state is updating the minimum and maximum weekly benefit amounts (WBAs) for Paid Leave Oregon and Unemployment Insurance (UI). These updates are based on Oregon’s annual recalculation of the State Average Weekly Wage, which rose this year from $1,307.17 to $1,363.80.

Here’s what employers need to know—and what you can share with your employees:

Paid Leave Oregon

(For benefit years beginning on or after July 6, 2025)

• Minimum WBA: Increases from $65.36 → $68.19
• Maximum WBA: Increases from $1,568.60 → $1,636.56

Unemployment Insurance

(For claims filed on or after June 29, 2025)

• Minimum WBA: Increases from $196 → $204
• Maximum WBA: Increases from $836 → $872

These new figures apply only to new claims or benefit years starting on or after the effective dates. Existing claims will continue under the previous benefit levels.

Why this matters

Oregon law requires these benefit adjustments each year to reflect wage growth in the state. For employers, this is a good time to make sure your HR team and payroll providers are aware of the updates—and to help employees understand what these changes might mean for them if they need to apply for benefits.

How you can support your team

• Point employees to the Paid Leave Oregon Benefits Estimator to help them understand potential benefit amounts.
• For unemployment questions, the Oregon Employment Department website has the latest information and guidance.
•  Include these updates in your internal HR communications or benefits discussions so employees aren’t caught off guard.

Need help staying current or updating your policies and practices? That’s what we’re here for. HR Answers is ready to support you with the tools and knowledge you need to manage Oregon’s evolving leave and benefit programs with confidence.

Federal and state budget shifts are placing new pressures on organizations across sectors, especially those reliant on public funding. Whether you’re a nonprofit, public agency, or private contractor, the ripple effects of these cuts require immediate and thoughtful operational review. Business leaders must act decisively, using a structured and strategic approach to safeguard what matters most. Here are five critical steps every organization should take now:

1. Conduct an Organizational Assessment – Where do we stand today? Understand your current state. Identify what’s working, what’s not, and where resources are being stretched too thin. This will inform smarter, mission-aligned decisions going forward.

Action Tip:
Use this opportunity to engage internal teams in the process — transparency builds trust and generates practical insights from the front lines.

2. Review and Update Your Business Continuity Plan – Is your plan built for today’s risks? Make sure it includes scenarios for staffing reductions, program scaling, and operational pivots. It should support resilience, not just compliance.

Key Questions to Ask:
• What services must continue at all costs?
• Do we have contingency staffing and technology strategies?
• How quickly can we scale down or pivot operations?

3. Pursue Alternate Funding Sources – Diversify beyond federal dollars. Explore private grants, partnerships, fee-for-service options, and local/state funding.

Explore:
• Private foundations aligned with your mission
• Local and state grant programs
• Corporate sponsorships or social impact investment
• Fee-for-service opportunities where appropriate

4. Prioritize Essential Programs – Focus on the programs with the greatest impact. Cut or scale down those that don’t directly serve your mission or contractual obligations.

Evaluation Criteria Might Include:
• Alignment with core mission
• Outcomes and performance data
• Community or customer need
• Legal or contractual obligations

5. Right-Size Your Workforce – Align staffing with program priorities. Consider cross-training, temporary roles, or shared services to maintain operations while managing costs.

Consider:
• Cross-training opportunities
• Temporary staffing or shared service models
• Role consolidation to maximize talent

Let strategy arise to achieve your present and future success!!!

The Department of Labor’s new and planned rules intended to raise the salary threshold for overtime exemption have been stopped by a federal judge.

What that means:

1. Current Threshold Remains Around $35K: The increase to $44K (July 2024) and the planned increase to $59K (January 2025) are canceled for now. Automatic raises every three years are also blocked.
2. Reason for the Halt: The court ruled that the Department of Labor (DOL) overstepped its authority by focusing too much on salary instead of job duties when deciding who is exempt from overtime.
3. What’s Next: The DOL may appeal, but the new presidential administration (Trump, starting January 2025) is unlikely to fight for the rule.
4. For Employers:
   • If you’ve already raised salaries or reclassified jobs, consider the impact on morale before rolling back.
   • If you haven’t made changes, hold off until there is more clarity.
   • Consider reviewing roles and consulting with us prior to making any additional changes.

This decision requires each employer to continue thoughtful planning to manage employee expectations and legal obligations.

Washington State’s Department of Labor & Industries has announced a bump in the state minimum wage starting January 1, 2025. This change will also affect the overtime exempt threshold for both small and large employers.

Here’s what you need to know:

Minimum wage increase:

• For workers aged 16 and older, it goes from $16.28 to $16.66 per hour.
• For workers aged 14 and 15, it jumps from $13.84 to $14.16 per hour.
• Keep in mind that some cities like Seattle, SeaTac, Tukwila, Renton, and Bellingham already have their own minimum wage rates. Burien is set to have its own in 2025, too!

Impact on overtime exemptions:

• For small employers (50 or fewer employees), to classify someone as exempt from overtime, they need to pay at least double the minimum wage, which means:
  • $1,332.80 per week or $69,305.60 per year.
• For large employers (51+ employees), the salary threshold is higher at 2.25 times the minimum wage:
  • $1,499.40 per week or $77,968.80 per year.
• Different rules apply for specific roles, like exempt computer professionals and rideshare drivers.

Noncompetition agreements:

The wage threshold for non-competes in 2025 will be $123,394.17. There are also state and federal restrictions on when these agreements can be presented to employees.

Action items for employers:

Be sure to notify employees about these changes and update classifications or payroll before January 1, 2025, to stay in compliance.

Give us a call if have any questions.

On October 10, 2024, the Oregon Employment Department released the following statement regarding 2025 Paid Leave Oregon contribution and Unemployment tax rates:

“Each November, the Oregon Employment Department notifies employers of tax and contribution rates for the next calendar year. We will mail letters to employers with their rate information for both Paid Leave Oregon and Unemployment Insurance on November 15. You can also find your 2025 rate information in your Frances Online account after November 15.

To support Oregon businesses who were negatively affected during the pandemic, the Legislature passed House Bill 3389 (2021) which temporarily held experience ratings at 2020 rates.  For 2025, we are returning to the standard rules that were in place before the pandemic to calculate your UI tax rate.  House Bill 3389 required us to use your 2020 experience rate to calculate your 2024 tax rate, but for 2025, this will change.  We will calculate your 2025 tax rate based on wages and benefit charges from the third quarter of 2021 through the second quarter of 2024.”

If you have 25 or more employees in Oregon keep reading…

Oregon’s Bureau of Labor and Industries has issued a Temporary Administrative Order with proposed rule to inform organizations about the process to end and transition coverage from Oregon Family Leave Act (OFLA) protection to Paid Leave Oregon Insurance (PLO) protection.

As a reminder, the list of OFLA covered instances will be reduced on July 1, 2024 in accordance with SB1515.

Current OFLA list (Through June 30, 2024):

• Parental leave for the birth, adoption, or foster placement of a child.
• Leave for an employee’s own serious health condition or to care for a family member with a serious health condition.
• Pregnancy disability leave before or after the birth of a child or for prenatal care.
• Home care leave for a child with an illness or injury that is not a serious health condition.
• Leave for a child whose school or childcare provider has closed due to a public health emergency.
• Bereavement leave after the death of a family member.
• Military family leave for a spouse or domestic partner called to active duty.

New OFLA list (Effective July 1, 2024):

• Home care for the employee’s child (both serious and non-serious health conditions) and school/childcare closures for public health emergencies.
• Bereavement leave, limited to two weeks per family member, with a maximum of four weeks in a given leave year.
• Pregnancy disability leave.
• Military family leave (up to 14 days per deployment) will continue to count against available OFLA.
• From July 1, 2024, through January 1, 2025, OFLA will also provide up to two additional weeks of leave to facilitate the legal processes required for placement of a foster child or adoption.

These changes facilitate the change that OFLA will no longer run concurrently with Paid Leave Oregon, meaning employees will not be able to draw from both OFLA or PLO for the same qualifying events. The list of qualifying events for OFLA has been shortened, and some provisions, such as additional sick child leave for employees who take 12 weeks of parental leave, will no longer be provided.

The Temporary Administrative Order outlines that a notice must be provided to all employees about the change in qualifying events. In addition, and no later than JUNE 1, 2024, notice must be given to employees on protected OFLA leave for a qualifying event that is sunsetting, identifying the end of that protection on June 30, 2024, and the process to apply for PLO.

A copy of the Temporary Administrative Order can be found HERE.

If you have any questions on this topic, or other HR matters, please reach out.