Paid Leave Oregon for restaurant employers: contributions and notices

Oregon has a state paid leave program for family, medical and safe leave, called Paid Leave Oregon, and every restaurant that has employees takes part. It runs alongside the state's sick time law and is separate from federal leave. For an owner, the practical questions are the same as in any state: how much comes out of wages, whether you also pay, what you must post and file, and how to keep the kitchen running when a cook is away for weeks. Here are the answers. Check paidleave.oregon.gov before you act, since rates and forms are updated each year.

What is the 2026 contribution rate?

For 2026 the total contribution rate is 1 percent of wages, up to a wage cap of $184,500 per employee. It is split 60 percent to the employee and 40 percent to the employer. That means workers cover 0.6 percent through payroll withholding, and larger employers owe the remaining 0.4 percent. The rate may change from year to year, so check the state's pages each January. A restaurant pays on all of its wages, tipped income included, up to the cap, so make sure tips are recorded in payroll.

Do you pay the employer share?

Only if you are a larger employer. According to the Employment Department, businesses with an average of 25 or more employees owe the 40 percent share. The count includes both in-state and out-of-state workers on average over the period. Smaller employers, with fewer than 25 employees, do not owe the employer share, but they must still withhold the employee share and send it in. A small restaurant may choose to pay some or all of the employee share as a benefit. Ask your accountant how counting works if you have a mix of full-time, part-time and seasonal staff.

What must you post and file?

The state provides a model notice poster, and employers must display it at each work site and send a copy to remote employees. Employers withhold the contributions from wages, file quarterly payroll reports through the state's online system and pay as the state directs. Mark the due dates on your calendar, because late filing can mean penalties. The state also expects the poster to be updated, so replace old copies when a new version appears.

What do workers get?

The program pays a share of wages to eligible workers during approved family, medical or safe leave. Details such as the number of weeks and the benefit formula are on the state's website, and they change by year. The benefit comes from the state fund, not from your payroll, but you must plan for the absence. Employees who have worked for you long enough are generally entitled to return to their job or a similar one, under the state guidance, so you cannot fill the position permanently.

How do you handle a claim?

When an employee applies, the state notifies the employer and you may add information about the employee's work and dates. The windows are short, so read the notice itself and answer quickly. Keep personnel records tidy: hire dates, hours and pay. An unclear record slows the claim and can lead to disputes.

How should a restaurant plan around leave?

• Cross-train every station so no single cook or server is irreplaceable.
• Keep a short list of reliable part-timers and former staff.
• Write simple prep lists and recipe cards.
• Talk to the employee early about timing and return.
• Be careful not to retaliate or change duties unfairly when someone requests leave.
• Ask your payroll provider to include Paid Leave Oregon in your quarterly checks.

A kitchen that can cover a cook for twelve weeks is also a kitchen that survives a flu season.

Does it interact with Oregon sick time?

Yes, in the sense that both exist. Oregon's sick time law gives workers short, paid time for illness, and Paid Leave Oregon covers longer absences. Employers should not mix the two in policies. A separate guide covers sick time for restaurants with six or ten employees and in Portland.

What common mistakes do owners make?

Forgetting to count part-time staff in the 25-employee average, leaving the poster at one location only, missing the quarterly report and failing to record tips as wages. Another is treating a request as informal. Anything about leave should go on the record the same day, with a copy to payroll.

Should you pay the employee share for small teams?

It is optional for employers with fewer than 25 employees. A restaurant competing for cooks may find that a small contribution adds goodwill, but it also adds cost. Run the numbers with your accountant on a typical payroll before you decide, and tell your team plainly what you are doing.

Are you trying to keep the people who make your food?

Fair benefits help, and so does a steady stream of guests that makes shifts worth working. Mosey is a food-first app where diners find places by dish, mood and neighborhood and rate what they actually ate. A restaurant can host a menu page, show its best-rated dishes and reply to guests, which helps a dining room stay busy enough to keep a good team together.

More guides for your business:

• Oregon Fair Work Week law: does it apply to your restaurant?
• What Oregon's July 2026 minimum wage rise means for cafes
• Oregon minimum wage by zone and no tip credit: a guide for restaurants

More in the US guides for food businesses.