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NewsBrief – October 2024

In This Issue:

Compliance Corner: Paid Leave Oregon Guide

Each month, we highlight one of the many resources exclusively available to you as a member of Cascade.

This month, we are featuring our Paid Leave Oregon Guide. This guide helps Oregon employers navigate the state’s newest leave law by covering contributions, benefits, equivalent plans, and more!

Be Prepared for DOL’s “White Collar” Exemption Salary Increase on January 1st

Cascade Compliance Team
compliance@cascadeemployers.com

On July 1st, the Department of Labor’s (DOL) Final Rule regarding “white collar” salary exemptions from overtime requirements took effect. Under DOL’s new Final Rule, to be exempt from overtime, an employee needs to make at least $844/week ($43,888/year). This amount will increase to $1,128/week ($58,658/year) beginning on January 1, 2025.

Oregon employers should begin to prepare now for the January 1st salary increase. Specifically, they should complete a budget analysis of the salaries of exempt employees who are paid below the January 1st salary threshold of $1,128/week and either reclassify those positions nonexempt or keep the exemption by increasing the salaries. Employees in positions that need to be moved to nonexempt to comply with this rule will need training on what it means to be nonexempt, such as how to track hours, and rest and meal periods. Additionally, employers should watch out for pay equity issues under Oregon’s Pay Equity law.

For Washington employers, Washington’s salary requirements for exempt employees are higher than the DOL requirements. Therefore, Washington employers need to follow the state’s salary threshold, found here.

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Washington L&I Releases Draft Rules to Amend Equal Pay and Opportunities Act

Cascade Compliance Team
compliance@cascadeemployers.com

On September 5th, Washington’s Department of Labor and Industries (L&I) released a preliminary draft of the rules to amend the Equal Pay and Opportunities Act (EPOA). Currently, Washington’s EPOA protects workers against wage discrimination based on gender.

Substitute House Bill 1905 expands protections to not only gender but also “age, sex, marital status, sexual orientation, race, creed, color, national origin, citizenship or immigration status, honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability.”

It is important to note that these rules are only in draft form. Cascade will monitor these rules and keep employers updated.

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You Requested a Market Base Pay Assessment: What Does It Entail?

Margaret Oglesby, Compensation Consultant
compensation@cascadeemployers.com

When you request a market base pay assessment, you're seeking a comprehensive analysis of how your organization’s compensation stacks up against industry standards and competitors. This process is key for ensuring your compensation strategy is competitive and fair, ultimately helping you attract, motivate, and retain top talent. Here’s a breakdown of what a market base pay assessment typically involves:

1. Defining Objectives and Scope

The first step in conducting a market base pay assessment is clearly defining its objectives and scope. Common goals include ensuring your pay practices are competitive, fair, and aligned with industry standards. The scope often covers:

  • Market Positioning: Deciding whether your organization aims to lag, match or lead the market by targeting the 25th, 50th or 75th percentile of market data.
  • Job Benchmarking: Identifying roles in the market that are comparable to your organization’s positions.
  • Market Data Analysis: Gathering relevant pay data from survey sources.
  • Demographic Alignment: Using data that reflects your organization's specific demographic profile such as the organization’s location, annual revenue, industry, and number of full-time employees.
  • Internal Pay Structure Review: Comparing your organization's current pay against the market.

These elements shape the overall strategy of the assessment, ensuring it focuses on relevant areas impacting your organization.

2. Data Collection

A robust data collection process forms the foundation of a market base pay assessment. This involves gathering customizable compensation data from reputable sources, including:

  • Compensation Surveys: Industry-specific surveys providing insights into salary ranges, bonuses, and benefits. At Cascade, we use survey sources tailored for both for-profit and non-profit organizations.
  • Salary Databases: Third-party databases aggregating compensation information across various sectors.
  • Industry Reports: Reports offering insights into compensation trends and benchmarks for specific roles or industries.

The data used is current and relevant to the specific role, geographic location, and industry. A minimum of three survey sources is used, following best practices, to establish a market-based salary range. The more specific and reliable the data, the more accurate the results.

3. Job Matching

Job matching involves comparing internal roles with equivalent roles in the external market. Key factors considered include:

  • Job Responsibilities: Ensuring role responsibilities align with the market data.
  • Required Skills and Experience: Comparing the required skills and experience levels between the internal role and market data.
  • Job Level: Matching the organizational level and seniority of the role with external benchmarks.

This step is critical to the accuracy of the assessment, as mismatched roles can lead to inaccurate pay recommendations.

4. Compensation Analysis

With data in hand, the next step is to analyze the compensation levels, which typically includes:

  • Salary Range: Determining the start, midpoint, and maximum of the range based on the averaged market data.
  • Pay Structures: Comparing your pay structures with market trends and practices.
  • Internal Equity: Assessing pay consistency within your organization to ensure fairness and equity.

5. Reporting and Recommendations

Once the analysis is complete, a report is generated outlining the findings. This report generally includes:

  • Survey Sources: A comprehensive list of all sources utilized for the specific analysis.
  • Market Salary Data Analysis: The average of all data points to determine the minimum, midpoint, and maximum of the salary range.
  • Market Salary Range: The recommended salary range derived from averaging the data across all survey sources.
  • Organization Comparison: An evaluation comparing your organization’s current pay or midpoint to the market midpoint.

A market base pay assessment is an essential tool for ensuring that your compensation practices are both competitive and equitable. By systematically analyzing market data, comparing job roles, and making informed recommendations, you can optimize your compensation strategy to attract and retain top talent. Investing time and resources into this process will significantly enhance your organization’s competitiveness in today’s dynamic job market.

At Cascade, we offer comprehensive market base pay assessments, including market base pay plus target bonus assessments for total rewards insights. If you need assistance with any role, do not hesitate to contact us.

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Hot Compliance Question

Cascade Compliance Team
compliance@cascadeemployers.com

Question: What is Oregon’s Domestic Violence Leave law?

Answer: The Domestic Violence Leave law requires Oregon employers to provide reasonable leave and reasonable safety accommodation to any employee, regardless of the amount of time or hours worked, who has been a victim of domestic violence, harassment, sexual assault, a bias crime or incident, or stalking.  It also prohibits employers from discriminating or retaliating against employees who are victims of domestic violence, harassment, sexual assault or stalking.

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Five Things You May Not Know About Salem Child Development Center (SCDC)

By Sheryl Kelsh, Membership Development Manager
skelsh@cascadeemployers.com

Finding the right childcare is often one of the most important and difficult decisions a parent makes. Salem Child Development Center (SCDC) has been a trusted partner for families in Salem, Oregon for over five decades.

Here are five lesser-known facts about SCDC that highlight its commitment to providing outstanding care and education for children:

  1. A Long History of Service

    SCDC was founded in 1969, making it one of the oldest childcare providers in the region. Its longevity speaks to its deep-rooted commitment to the community and its continuous evolution to meet the needs of modern families.

  2. A Variety of Care Options

    SCDC offers programs for children from six weeks to 12 years old, catering to a broad age range. This includes infant care, toddler programs, preschool, and before-and-after school care for older children. These options ensure that the center can support children throughout many developmental stages.

  3. Dedicated, Licensed Facilities

    With over 20 locations throughout Marion & Polk Counties, SCDC provides easily accessible care no matter where families are located. Each location is licensed, meeting strict safety and operational standards set by the state of Oregon, ensuring a safe, enriching environment for children.

  4. Emphasis on Quality Education and Care

    SCDC doesn’t just offer a place for children to stay during the day. The programs emphasize developmental milestones and education, helping children grow socially, emotionally, and cognitively. This focus on quality early childhood education helps children prepare for future success in school.

  5. A Nonprofit Organization That Gives Back

    As a nonprofit, SCDC is focused on reinvesting in the families and community it serves. They accept a variety of third-party payments and offer scholarships to make childcare more accessible. Additionally, SCDC provides vacation credits, multi-child family discounts and flexible scheduling options to accommodate the varying needs of families.

SCDC is not just a childcare center; it’s a trusted partner for families, helping children thrive in a safe, supportive environment. SCDC is dedicated to providing quality services tailored to the community’s needs.

Cascade is pleased to have the opportunity to feature Salem Child Development Center as an outstanding member and employer.

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