Beyond the Delays: Exploring Equivalent Plans for Reliable Paid Leave

Since its inception, Paid Leave Oregon has faced significant challenges, including delays in processing claims, technical issues, and fraud attempts. These problems have highlighted the program's shortcomings and the need for more effective solutions.

Paid Leave Oregon (PLO) was launched in 2023 as a financial safety net for workers needing time off for family, medical, or safety related leave. While the idea behind the program’s construction is essential, the execution has led many workers without the help that they were promised.

One of the primary issues with the program has been processing times. The average wait time for claims is currently 29 days[1], though some applicants find themselves having to wait several months before they start receiving money[2]. This delay has led to workers going back to work prematurely, many times after surgeries or the birth of a child, to avoid eviction and various other financial pitfalls.

These delays are happening, in part, because of the state’s battle with a high level of fraud within the program. Though they have refused to release exact numbers, a decision that coincides with a general lack of transparency within the program[3], representatives from the state claim that struggles to verify identities of applicants are a primary cause for lack of efficiency. These are issues that the State of Oregon has been victim to for years, with state database leaks compromising the identities of 850,000 Oregonians in 2014, and another 600,000 in 2019[4]. Scammers have found it very easy to take advantage of government systems over the past decade.

The state has acknowledged the need to reform the program, Governor Tina Kotek stating that she would be open to legislature that would provide more transparency within the organization. Specialists have also been brought in to help applicants move through the process, which the state says is speeding up the process – although exact numbers are still not available.

As the future of Paid Leave Oregon remains uncertain, one option that some employers are utilizing to circumvent PLO completely are equivalent plans. Carrier-provided leave packages that allow for the same level of benefits as PLO. While not a perfect fit for every employer (but certainly worth exploring for employers with more than 25 employees), equivalent plans can be cost-effective because they aren’t subject to the flat 1% payroll tax of PLO and are instead individually underwritten based on the specific risk factors of the employer. Claims can also be tracked throughout the application process, allowing for more transparency for benefit seekers. By exploring this alternative, employers can ensure their employees receive timely and reliable support, mitigating the current shortcomings of the state-run program.

Reach out to Patrick Sullivan, patrick@csnwinc.com, of CSNW Benefits, Cascade’s employee benefits partner, to request a PLO equivalent plan quote and cost-benefit analysis.

[1] https://katu.com/news/local/paid-leave-oregon-says-average-wait-is-29-days-some-though-wait-months

[2] https://katu.com/news/local/stroke-survivor-struggles-with-paid-leave-oregon-fears-losing-her-home

[3] https://www.oregonlive.com/politics/2024/04/is-oregons-paid-leave-program-beset-by-delays-fraud-state-shields-basic-statistics-presenting-incomplete-picture-of-effectiveness.html

[4] https://www.opb.org/article/2023/11/08/scammers-data-breaches-oregon-paid-leave-consumer-protection/