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NewsBrief – June 2024

In This Issue:

Compliance Corner: Background Checks 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 Background Checks Guide. Applicants and employees are protected from employment discrimination under both Oregon and Federal law. With that, employers are restricted as to what kind of questions they may ask applicants including salary history, credit history, employment status, and criminal history. This guide dives into numerous aspects of employment background checks and helps employers stay compliant throughout the process.

Upcoming Important Compliance Dates

Cascade Compliance Team
compliance@cascadeemployers.com

In the first six months of 2024, there has been a lot of employment law activity and changes at both the state and federal level. Here is a quick recap of the most important dates:

Oregon – Effective July 1, 2024

  • Oregon Family Medical Leave (OFLA) Changes
    • Eliminates leave for a serious health condition for an employee or the employee’s family member (except for the employee’s child) and parental leave.
    • Bereavement is capped at four weeks per year.
    • Sick Child Leave includes leave to care for a child who requires home care due to an illness, injury or condition, which could include a serious health condition.
    • OFLA no longer runs concurrently with PLO.
    • Two additional weeks of leave added to effectuate the legal process required for placement of a foster child or the adoption of a child. Effective until December 31, 2024.
  • For more detailed information on the PLO and OFLA changes, click here.
  • New Oregon Minimum Wage
    • Standard Minimum Wage: $14.70 per hour
    • Portland Metro Minimum Wage: $15.95 per hour
    • Non-Urban Minimum Wage: $13.70 per hour
  • For more detailed information, click here.

Federal Fair Labor Standards Act Overtime Exemption – Effective July 1, 2024

  • Under DOL’s new rule, to be exempt from overtime, an employee will need to make at least $844/week ($43,888/year) beginning on July 1, 2024.
    • Employees will still need to meet the existing job duties requirements for the “white collar” salary exemptions.  These requirements did not change.
    • Legal challenges are already happening, and this rule may not take effect July 1.
  • For more detailed information, click here.

Federal Non-Compete Ban – Effective September 4, 2024

  • The Federal Trade Commission (FTC) issued rulemaking that would virtually ban non-compete agreements and supersede all state laws relating to non-compete agreements. This goes into effect September 4, 2024.
    • Legal challenges are already occurring, and this rule may not take effect on September 4.
  • For more detailed information, click here.

In this dynamic legal landscape, Cascade will continue to monitor and alert employers of any changes.

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BOLI Clarifies OFLA Protections in Advance of the July 1st Transition

Cascade Compliance Team
compliance@cascadeemployers.com

The Bureau of Labor and Industries (BOLI) has issued temporary administrative rules addressing existing Oregon Family Leave Act (OFLA) claims for reasons that will no longer be covered by OFLA as of July 1, 2024.

BOLI’s temporary rules address what will happen to existing OFLA claims, when the rules change on July 1, 2024. Under the rule, employers may deny OFLA as of July 1, 2024 for employees on parental leave or for leave for a serious health condition for themselves or a family member (except for the employee’s child) because those reasons will no longer be protected under OFLA. This includes employees who are currently taking OFLA that has already been approved beyond July 1.

In rescinding approval for OFLA leave, employers must provide written notice to the affected employees stating that the employee’s leave is not protected by OFLA on and after July 1. The notice needed to be provided by June 1, 2024. If you missed this deadline, make sure to get the notice out as soon as possible.  If employers rescind the approval for OFLA leave, employees must also be informed in writing that the employee may apply for benefits under Paid Leave Oregon, including contact information for Paid Leave Oregon or, if applicable, the employer’s equivalent plan. Information for Paid Leave Oregon must be provided within the following timelines.

  • For already approved leaves: With the notice rescinding the employee’s approval for leave (by June 1, 2024), or
  • For new leave requests: As soon as practicable, but within 14 days of the employee providing information that would have previously been adequate for an employer to approve the leave.

Employers should immediately review OFLA claims for reasons that will no longer be covered under OFLA as of July 1 and issue notices rescinding approval of OFLA leave by the established timelines. The temporary rules do not impact an employee’s leave under the Family Medical Leave Act (FMLA).

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Updated OFLA, PLO, and FMLA Forms and Policies for July 1st

Cascade Compliance Team
compliance@cascadeemployers.com

As a reminder, there are major changes coming to the Oregon Family Medical Leave Act (OFLA) beginning on July 1st. Specifically, OFLA will no longer include leave for a serious health condition for an employee or the employee’s family member (except for the employee’s child) or parental leave. OFLA Bereavement leave is capped at four weeks per leave year and OFLA Sick Child leave is expanded to include leave to care for a child who requires home care due to an illness, injury or condition, which could include a serious health condition.

Additionally, Paid Leave Oregon (PLO) and OFLA will no longer run concurrently and OFLA and the Federal Family Medical Leave Act (FMLA) will run concurrently only in very limited instances. OFLA is also temporarily amended, from July 1, 2024 to December 31, 2024, to add two additional weeks of leave to effectuate the legal foster child or adoption process.

Members of Cascade Employers Association can access the following:

Forms

  • OFLA Designation Notice
  • OFLA Notice of Eligibility and Rights and Responsibilities
  • OFLA Attestation of Affinity
  • FMLA Designation Notice
  • FMLA Notice of Eligibility and Rights and Responsibilities
  • FMLA Certification of Health Care Provider: Employee
  • FMLA Certification of Health Care Provider: Family Member

Notices

  • OFLA Change Notice
  • OFLA/FMLA Change Notice

Policies

  • OFLA Policy
  • PLO Policy
  • FMLA Policy

For more information, register to attend today’s webinar, OFLA and PLO Update: Prepare for the Changes beginning at noon or purchase the on-demand version to watch on your own time.

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Q & A to Simplify Compensation Discussions with Employees

Margaret Oglesby, Compensation Consultant
compensation@cascadeemployers.com

Miscommunication takes a toll on US businesses, with Grammarly's report estimating the cost at $12,506 per employee per year. It's no surprise that it's a major worry for organizations. But it's not just a worry; it's a big challenge. Navigating effective communication can be tricky, especially with complex topics such as compensation. So, what's the solution? Prioritizing simplicity in communication, ensuring that messages resonate clearly with recipients, which fosters trust, satisfaction and understanding for all parties. Here are some common questions and answers to help simplify discussions about compensation when talking to employees.

What is base pay?

Base pay refers to the fixed amount of money an employee earns for their work before any additional bonuses, incentives, or benefits are added. It's the core component of an employee's salary and typically represents the minimum amount they can expect to receive regularly for performing their job duties.

What is my total compensation?

Total compensation is the complete package of all the rewards and benefits received from your employer in exchange for your work. It includes not only your base salary but also any bonuses, commissions, or incentives you may receive, as well as the value of any benefits such as health insurance, retirement contributions, paid time off, and other perks like tuition reimbursement or employee discounts.

What is the minimum, midpoint, and maximum of a salary range?

The minimum is the lowest salary within a given pay range for a particular position. The midpoint is the middle point of a salary range and is the salary level that represents the average or typical compensation for a specific position, taking into account factors such as experience, skills and market conditions. The maximum is the highest salary within a given pay range and represents the highest amount an employer is willing to pay for that role based on factors such as budget constraints, market competitiveness and internal equity considerations.

What does “50th percentile” mean in relation to one’s salary?

If your compensation is at the 50th percentile, it means your salary is right in the middle of what others in your position earn. Half of your peers earn more, and half earn less. This percentile, also called the median, helps gauge how your pay compares to others in your job or industry. If you're at the 50th percentile, your salary is considered average compared to others in similar roles. Most employers aim to set their norms at the 50th percentile.

What does the term “paying at market” mean?

“Paying at market" means compensating employees at a level that is competitive with what other companies are offering for similar roles. Using credible survey data, it ensures organization salaries and benefits are in line with industry standards, helping to attract and retain talent.

What is a compa-ratio?

Compa-ratios are commonly used to evaluate the competitiveness of employee salaries within the organization. A ratio below 1 suggests that an employee's salary is below the midpoint, while a ratio above 1 indicates that their salary exceeds the midpoint.

How are pay ranges determined?

Pay ranges are created by looking at salaries in the industry and evaluating internal job worth. Surveys and data help determine what others are paying for similar positions. Budgets and legal requirements also influence pay range creation. Ultimately, pay ranges help set salary levels within an organization.

Pay communication is an important aspect of employee satisfaction and ensuring managers and staff are in alignment.  If you need any assistance in developing your compensation program or help in how to communicate your program, reach out to our compensation team today.

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Hot Compliance Question

Cascade Compliance Team
compliance@cascadeemployers.com

Question: What is considered “hours worked” for purposes of determining compensable time?

Answer: Under Oregon Law, hours worked means any hours “suffered or permitted.” This includes but is not limited to:

  • Preparatory and concluding activities
  • Work performed offsite or outside of normal working hours
  • Most meeting and training time
  • Some travel time
  • Some on-call time
  • Break periods

It is important to note that “if the employer knows or has reason to believe that work is being performed, the time spent must be counted as hours worked.” Additionally, it is the duty of the employer to exercise control to make sure that employees do not perform work that is not requested. The creation of a policy against such work is not enough.

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Five Things You May Not Know About Capital Community Media

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

All people in a democracy have the right and responsibility to take part in the decisions that affect them and their communities. Freedom of speech is vital to a healthy democracy and is guaranteed in the First Amendment. Capital Community Media (CC:Media) provides the greater Salem community with the opportunity for political, cultural, artistic, spiritual, and individual expression.

Here are few things you may not know about this incredible community resource:

  1. Comprehensive Training Programs

    CC:Media offers extensive training in video production. They provide workshops on camera usage, editing, and studio production, ensuring that community members can create high-quality content. This is part of their mission to empower locals to tell their own stories and share them with a wider audience.

  2. Free Studio Access

    CC:Media offers free studio space and equipment for community use. This initiative supports local content creators, giving them the tools they need to produce professional-grade media without the prohibitive costs usually associated with such resources.

  3. Non-Profit Support

    CC:Media runs a Non-Profit Center aimed at helping local non-profits with their media needs. They offer services such as video production, promotional support, and a community billboard to help these organizations raise awareness and engage with the community effectively.

  4. Local Programming

    The organization is dedicated to broadcasting local content that reflects the community's diverse interests. Their programming includes local government coverage, high school sports and music, cultural events, and community news, providing a platform for hyper-local stories that might not find space in larger media outlets.

  5. Evolution and Recognition

    Originally known as CCTV, Capital Community Media rebranded to better reflect its broader mission. Over the years, CC:Media has been recognized for its contributions to community media, receiving accolades like the Hometown Media Awards from the Alliance for Community Media, which celebrates excellence in local cable programming.

Cascade is pleased to have the opportunity to feature Capital Community Media as an outstanding member and employer.

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