Oregon Employment Bills Update

This year, the Oregon State Legislature had a short legislative session. Here is the status of the following employment bills at the conclusion of the session.

SB 1513 A – Overtime Shifts - Approved

SB 1513 A was signed into law and prohibits an employer from taking an adverse employment action against an employee of a bakery or tortilla manufacturer who refuses to work a mandatory overtime shift unless the employee receives at least five days advanced notice of the overtime shift. SB 1513 A also requires that the notice to employees must include the date and time of the overtime shift.

Additionally, SB 1513 A makes it unlawful for an employer to take an adverse employment action against an employee for the employee's refusal to work a mandatory overtime shift when the employee has not received notice of the mandatory shift. This law goes into effect January 1, 2023.

SB 1514 – Pay Equity Amendment - Approved

As a reminder, in 2021, HB 2818 temporarily amended Oregon’s Pay Equity law to allow employers to exclude hiring and retention bonuses and vaccine incentives from the definition of compensation for purposes of Oregon’s Pay Equity law.  These temporary exclusions expired on March 1, 2022.

On March 7, Governor Brown signed SB 1514 which allows employers to continue to exclude hiring and retention bonuses and vaccine incentives from the definition of compensation through 180 days past the end of Oregon’s COVID-19 state of emergency.  The state of emergency ended on April 1, 2022, which means these temporary exceptions will be permitted through September 28, 2022.

After that date, hiring and retention bonus and vaccine incentives will be included under the definition of compensation under Oregon’s Pay Equity Law.

SB 1515 – Modification of PFMLI Benefit Year - Approved

SB 1515 was signed into law and clarifies “benefit year” under the Paid Family and Medical Leave Program (PFMLI).  PFMLI provides employees with wage replacement benefits when they need to take medical, family, bonding, or safe leave. Employers and employees will begin making contributions to the program beginning January 1, 2023, and the program is scheduled to begin paying benefits on September 3, 2023.

SB 1515 defines "benefit year" for purposes of PFMLI as a period of 52 consecutive weeks beginning on the Sunday immediately preceding the date on which family, medical, or safe leave commences. The law also authorizes use of a 53-week benefit year necessary to avoid overlap with any quarter of the base year for a previously filed valid claim. SB 1515 further removes the requirement that the Oregon Employment Department (OED) define benefit year and establish alternatives for employers. This law goes into effect January 1, 2023.

SB 1586 A – Workplace Fairness Act Amendments - Approved

This amendment to Oregon’s Workplace Fairness Act was signed into law. As a reminder, in 2019 the Workplace Fairness Act passed which, in part, made it an unlawful employment practice for employers to require employees to enter into agreements that would prevent them from disclosing or discussing conduct constituting unlawful discrimination including sexual assault, unless the employee voluntarily requested to enter into such agreement. SB 1586 A amends the Workplace Fairness Act to make it an unlawful employment practice for employers to ask employees to make such a request, or to make an offer of settlement conditional upon such a request.

Additionally, SB 1586 A provides that mediation communications relating to certain allegations of misconduct are not confidential and may be admitted as evidence. This law goes into effect January 1, 2023. 

HB 4002 B – Agricultural Overtime – Awaiting Governor’s Signature

Currently, agricultural workers are, for the most part, exempt from Oregon’s overtime rules. If signed into law, HB 4002 B would provide the number of hours in a workweek for which workers would be required to receive overtime pay. The number would be in excess of 55 hours in 2023 and 2024; in excess of 48 hours in 2025 and 2026, and in excess of 40 hours beginning in 2027. HB 4002 B would also create refundable income or corporate excise tax credit allowed to the employer for excess amount of wages paid as overtime pay to agricultural workers. This bill was passed by the House and Senate and is waiting on the Governor’s signature.