Oregon Administrative Rules › Chapter 471 - EMPLOYMENT DEPARTMENT › Division 70 - Paid Family Medical Leave Insurance › Section 471-070-3040 - Contributions: Withholding of Employee Contributions

Current through Register Vol. 63, No. 7, July 1, 2024
(1) An employer may not deduct from the
			 employee's subject wages more than the maximum allowable amount of 60 percent
			 of the total contribution rate described in OAR 471-070-3010  for a pay period
			 rounded to the nearest cent. When rounding, any number with the last figure
			 five or greater is rounded up, while numbers less than five are rounded
			 down.
(2) When performing the
			 calculation described in section (1) of this rule, the intermediate steps shall
			 not be rounded, only the final step shall be rounded to the nearest cent.
Example: On February 2, 2023 Jennifer earned $1,769.89 in
				subject wages for the pay period. The employer calculates Jennifer's
				contributions by multiplying the subject wages by the total contribution rate
				of 1% (not rounded) by the employee contribution rate of 60% (rounded to the
				nearest cent). The total potential contribution is $17.6989 ($1,769.89 x 0.01 =
				$17.6989, not rounded). Jennifer's employee portion of the potential
				contribution is $10.62 ($17.6989 x 0.60 = $10.61934, rounded to the nearest
				cent is $10.62). The employer's contribution (if a large employer) is $7.08
				($17.6989 x 0.40 = $7.07956, rounded to the nearest cent is $7.08).
(3) If an employer fails to deduct
			 the maximum allowable employee share of the contribution rate for a pay period,
			 the employer is considered to have elected to pay that portion of the
			 employee's contribution that the employer failed to deduct. The employer is
			 liable to pay that portion of the employee share under ORS
			 657B.150(5) or
			 ORS 657B.210(5) for
			 that pay period, if the failure to deduct the contribution is not corrected
			 within the quarter. The employer may deduct from the employee's subject wages
			 the amount they failed to deduct within the quarter.
(4) Notwithstanding section (3) of this rule,
			 when there are insufficient employee wages to collect the employee's share of
			 the contribution for a pay period, the employer may deduct the employee's share
			 of the uncollected contribution from future wages or have the employee pay the
			 contribution amount due to the employer before the end of the next quarter. The
			 employer may collect the employee's share of uncollected contributions until
			 the end of the next quarter following the quarter in which the employee had
			 insufficient wages for the contribution. The total amount deducted from any
			 paycheck may not exceed 10 percent of the employee's gross wages earned in the
			 pay period covered by the paycheck.
(5) An employer may elect to pay the
			 employee's contribution, in whole or in part, and must provide a written
			 notice, policy, or procedure to the employee or enter into a collective
			 bargaining agreement with the employee specifying that the employer is electing
			 to pay the employee contribution, making the employer liable for that portion
			 of the employee contribution. The employer must give written notice of an
			 update to its notice, policy, or procedure or amendment to its collective
			 bargaining agreement to the employee at least one pay period prior to any
			 reduction by the employer of the employee contribution amount that the employer
			 previously elected to pay.
(6) If
			 an employer has elected to pay, in whole or in part, the employee portion of
			 contributions as stated in section (5) of this rule, the employer may not
			 deduct the amount the employer elected to pay from a future paycheck of the
			 employee.
Statutory/Other Authority: ORS
				  657B.340
Statutes/Other Implemented: ORS
				  657B.150 &
				  657B.210