Under a new law effective January 1, 2016, private employers will generally be required to allow employees to earn and use up to 40 hours of paid or unpaid sick time per year, as follows:

• Employers that employ 10 or more employees (6 or more employees if an employer is located in Portland) working anywhere in Oregon must allow an employee to earn and use up to 40 hours of paid sick time per year.
• Employers that employ fewer than 10 employees (fewer than 6 employees if an employer is located in Portland) working anywhere in Oregon must allow an employee to earn and use up to 40 hours of unpaid sick time per year.

Note: Certain individuals are excluded from coverage, including independent contractors and certain work-study program participants. Also excluded from coverage are union employees hired through a hiring hall (or similar referral process) and covered by a collective bargaining agreement under which employment-related benefits are provided by a joint multi-employer-employee trust or benefit plan. This means that the majority of union employees in Oregon will be covered by the Sick Leave Law.

Accrual of Leave

• Paid or unpaid sick time accrues at the rate of at least 1 hour of sick time for every 30 hours the employee works (or 1 and 1/3 hours for every 40 hours the employee works).
• Employees begin to earn and accrue sick time on the first day of employment.
• An employee may carry over up to 40 hours of unused sick time from one year to a subsequent year. However, an employer may adopt a policy that limits:
• An employee to accruing no more than 80 hours of sick time; or
• An employee to using no more than 40 hours of sick time in a year.
• Note: Employers that front-load at least 40 hours of paid or unpaid (based on employer size) sick time or time off at the beginning of each year need not allow any accrual of leave or carry-over.

Use of Sick Time

• An employee is eligible to use sick time beginning on the 91st calendar day of employment with the employer (however, an employer may authorize an employee to use accrued sick time prior to such day) and may use sick time as it is accrued.
• An employee may use earned sick time for the following purposes:
• The employee's-or family member's (§ 659A.150(4))-mental or physical illness, injury or health condition, need for medical diagnosis, care or treatment of a mental or physical illness, injury or health condition, or need for preventive medical care;
• Any other purpose specified in the Oregon Family Leave Act (e.g., providing care to new family members, or bereavement);
• To handle certain matters related to domestic violence, sexual assault, or stalking (see § 659A.272  for additional information);
• To donate accrued sick time to another employee (if the other employee uses the donated sick time for a purpose specified in the law and the employer has a policy that allows an employee to donate sick time to a coworker for a purpose specified in the law); or
• In the event of a public health emergency.
• An employer required to provide paid leave must pay an employee for accrued sick time used at his or her regular rate of pay.

Employer Notice Requirements

• Employers must provide written notification at least quarterly to each employee of the amount of accrued and unused sick time available for use.
• Note: Inclusion of the amount of accrued and used sick time on the statement required under Oregon wage & hour law (§ 652.610) meets this requirement.
• Employers must also provide written notice of the law's provisions to each employee in accordance with rules expected to be adopted by the Commissioner of the Bureau of Labor and Industries.
• The Bureau of Labor and Industries is expected to make a template available that meets the required notice provisions.

Affected employers may read the text of the law for additional requirements, such as appropriate employee notice and certification provisions.