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NewsBrief – July 2024

In This Issue:

Compliance Corner: USERRA 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 USERRA Guide. The Uniformed Services Employment and Reemployment Rights Act (USERRA) is a federal law that provides broad reemployment rights to employees leaving civilian employment for military service. This guide dives into all aspects of USERRA including covered employees, notice requirements, compensation and benefits, reinstatement rights, and more.

OFLA Changes Took Effect July 1

Cascade Compliance Team
compliance@cascadeemployers.com

Senate Bill 1515A, passed in March 2024, made significant changes to the Oregon Family Leave Act (OFLA) and Paid Leave Oregon (PLO). Effective since July 1, 2024, OFLA now only covers the following qualifying reasons:

  • Sick Child Leave (non-serious and serious health conditions)
  • Pregnancy Disability Leave
  • Bereavement Leave
  • Foster or adoption legal process (effective July 1, 2024, to December 31, 2024)

Under PLO, employees will be entitled to use company-provided paid leave (PTO, vacation, sick) to supplement their PLO benefits up to 100% of their weekly wage; employers may be more generous and allow employees to use the full amount of their company-provided paid leave while receiving PLO benefits. Additionally, beginning January 1, 2025, PLO will cover leave to effectuate the legal process required for placement of a foster child or the adoption of a child.

Employers should update their OFLA and PLO policies to comply with these changes. Sample OFLA and PLO policies are available on Cascade’s Members Only site.

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DOL Raised Salary Threshold for Exempt Employees on July 1

Cascade Compliance Team
compliance@cascadeemployers.com

On July 1st, the Department of Labor (DOL) new “white collar” salary exemptions from overtime requirements took effect. Under DOL’s new rule, to be exempt from overtime, an employee needs to make at least $844/week ($43,888/year) beginning on July 1, 2024. This amount will increase to $1,128/ week ($58,658/year) beginning on January 1, 2025. Employees will still need to meet the existing job duties requirements for the “white collar” salary exemptions. These requirements did not change.

As a reminder, to be exempt from the minimum wage overtime rule under the FLSA's white-collar exemptions, employees generally must be paid on a salary basis, meet a minimum weekly salary, and meet specific exempt job duty requirements.

If you have not done so already, for any positions that do not meet the salary requirements, you will need to make adjustments. Employers will need to immediately either switch compensation to hourly or salaried non-exempt or increase the salary to the minimum threshold for exempt employees ($844/wk). Employees whose positions have switched from exempt to non-exempt to comply with this rule will need training on what it means to be non-exempt, 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.

Be advised that although there are still several lawsuits pending, the final rule did take effect in most of the country on July 1st.  This is still an active situation and Cascade will continue to provide updates as litigation moves ahead.

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Oregon Minimum Wage Increased on July 1

Cascade Compliance Team
compliance@cascadeemployers.com

Effective since July 1, 2024, Oregon’s minimum wage increased 50 cents to the following:

  • Standard Minimum Wage: $14.70 per hour
  • Portland Metro Minimum Wage*: $15.95 per hour
  • Non-Urban Minimum Wage**: $13.70 per hour

*Portland Metro Minimum Wage depends on the work location but generally is within Clackamas, Multnomah, and Washington Counties. To see if an exact address qualifies, click here.

**Non-urban counties: Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler.

If you have not done so already, update your Oregon minimum wage poster. You may purchase an All-in-One Poster through Cascade here.

For those who previously purchased Cascade’s 2024 All-in-One poster, the minimum wage update was mailed as an easy-to-apply sticker.

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BOLI Files Proposed Rules to Clarify Employer Obligations Following Allegations of Workplace Harassment

Cascade Compliance Team
compliance@cascadeemployers.com

On May 24th, Oregon’s Bureau of Labor and Industries (BOLI) filed a notice of proposed rulemaking to clarify the rights of employees and the responsibility of employers following allegations of workplace harassment.

As a reminder, under Oregon law, specifically OAR 839-005-0010 and OAR 839-005-0030, employers may be liable for workplace harassment when the employer knew or should have known of the conduct, unless the employer took immediate and “appropriate corrective action.”  Oregon law finds that an employer should have known of the harassment unless the employer can demonstrate that they exercised reasonable care to prevent and “promptly corrected any harassing behavior or sexually harassing behavior.”

BOLI’s proposed rules clarify what "appropriate corrective action" and "promptly correcting harassing behavior" means. Specifically, the employer must:

  • Intervene without avoidable delay to effectively halt harassing behavior;
  • Adequately investigate and ascertain the extent of harassing behavior;
  • Take appropriate disciplinary measures proportionate to the seriousness of the offense;
  • Do not penalize the reporting employee or make the aggrieved party worse off; and
  • Effectively act to prevent further harassment or retaliation against the reporting employee or aggrieved party for reporting or exercising rights concerning harassing behavior.

Additionally, the proposed rules state that “the success or failure of corrective action in stopping harassment is relevant, but not dispositive, as to employer liability in determining whether corrective action was reasonably likely to prevent the harassment from recurring.”

The last day for public comment to BOLI’s proposed rules is July 15th. Employers should be prepared to update their harassment policies and procedures should this proposed rule become finalized.

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The Value of Leveraging Multiple Salary Data Sources for Benchmarking

By Raquel Velez, Compensation Consultant
compensation@cascadeemployers.com

One of the most important tools an organization uses to remain competitive in attracting and retaining talent is its compensation program. As a common practice, many businesses rely on third-party market salary surveys for benchmarking roles to set competitive pay ranges. However, with more access to shared salary information, the question is which sources to trust and how many sources of data should be referenced.

To begin, the more diversity in data sources utilized leads to more comprehensive insights. No single source of data will offer all the complex details of every industry, region, and/or job. By including data from different sources, organizations can ensure their compensation strategies are competitive in the market. Each survey offers data based on different methodologies, from different participants, with varying scopes of data which results in variations in reported salary amounts. The data collected by these third-party vendors is regulated, analyzed, and organized into summarized information so an organization can determine a market average to build their salary ranges and establish practices that are relevant and competitive.

While there are free online sources available, the disadvantages of using free data includes risks of inaccurate or unreliable data, lack of comprehensive detail, outdated information, inconsistent data or methodologies, leading to the potential for overall misleading data. Also, typically there are limitations to customizing the data from these free sources such as by industry, employer size, region, and job function.  This makes it harder to utilize the data in a meaningful way when building or maintaining a pay structure.  Although many organizations are looking to cut costs wherever possible, using this approach to benchmarking jobs could end up even more costly by losing employees or candidates over salary requirements and may even cause internal pay equity issues.

Generally, it is recommended to use data from a minimum of three reliable sources when determining a salary range for a role.  Some key factors to look at when determining which sources to use include the publication date, sample size, expertise of the survey administrator, data collection method, and survey demographics.  This method provides a comprehensive and balanced perspective for well-rounded decisions on establishing not only a pay structure but also an effective overall compensation program. It allows for the cross-verification of salary information and reduces the risk of bias by pulling data from different participant pools to make competitive, fair, and equitable compensation decisions. Utilizing multiple market survey sources also creates deeper market insight into trends and salary growth.

It is crucial for an organization to leverage multiple market sources for compensation related decisions. Taking this approach can support well-informed compensation practices that are aligned with market standards, which in turn can have a positive impact on attracting and retaining talent.

To ensure your organization's pay ranges and compensation practices are competitive in the market reach out to our Compensation Team for consulting help!

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Hot Compliance Question

Cascade Compliance Team
compliance@cascadeemployers.com

Question: What is a Hostile Work Environment?

Answer: A hostile work environment is unwelcome conduct, based on a protected class such as race, age, disability or sex (which includes sexual harassment), that has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive work environment. It generally requires the conduct to be severe, pervasive, persistent, and objectively offensive to alter conditions of employment.

The following factors are considered when determining whether a hostile work environment exists:

  • The total amount of offensive conduct or content that pervaded the environment;
  • The reasonable expectation of the person upon entering the environment;
  • The nature of the unwelcome acts or words;
  • The frequency of the offensive encounters;
  • The context in which the harassment occurred;
  • Did the individual actively engage in similar conduct;
  • Whether the individual regarded conduct as undesirable or offensive.

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Elevate Your HR Career with HRCI Certification: A Pathway to Professional Excellence

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

In the dynamic world of human resources, staying ahead of the curve is crucial. Acquiring HR certification from the HR Certification Institute (HRCI), the premier HR credentialing organization, sets the standard for HR mastery and excellence. Cascade Employers Association, through its partnership with HRCI, offers Cascade members a unique opportunity to receive complimentary recertification credits and/or a discount on their initial certification exam.

Unmatched Benefits for Cascade Members

Cascade members seeking HRCI certification can reap significant benefits, making this a wise investment in their professional future. One of the standout advantages is the ability to earn up to twelve (12) Recertification Credits per three-year HRCI renewal cycle just for being a Cascade member. This breaks down to three credits per full year of Cascade membership (up to nine credits) under the Professional Achievement category, and an additional three Business credits (one per year for SPHR) under the Professional Development: Self-Directed Education category. For those with PHR, GPHR, or CA credentials that do not require Business credits, these will default to HR General credits.

Additionally, Cascade members enjoy a $50 discount off the exam fee for PHR, SPHR, GPHR, aPHR, or PHRca certifications. This financial incentive makes pursuing certification more accessible and affordable.

And remember, almost all training classes you attend at Cascade provide even more credit toward your next HRCI recertification.

Boost Your Career Prospects

Earning an HRCI certification can significantly enhance your career prospects. Employers often list PHR/SPHR Certification as “preferred” or a “strong plus” in job listings. This credential sets you apart from the competition and showcases your commitment to a career in human resources. According to PayScale, 34.2 percent of HR professionals hold at least one HR credential, and those with certification earn 31.6 percent more than their non-certified counterparts.

Furthermore, HR certification positively influences your chances of promotion. PayScale reports that certified HR professionals have up to a 25 percent greater chance of being promoted. This recognition reflects your expertise and dedication, positioning you as a valuable asset within your organization.

Enhanced Organizational Performance

Research indicates that organizations with HR-certified staff benefit from higher employer reputation ratings, increased stock price performance, and revenue growth. These organizations recognize the value of having knowledgeable, skilled HR professionals who drive strategic initiatives and foster a positive workplace culture.

Becoming a Recognized Leader

Earning your HRCI credential not only boosts your individual career but also marks you as a recognized expert and leader in the HR field. It demonstrates your dedication to maintaining high standards and continuous professional development, keeping you and your organization competitive in today’s economy.

For more information about requesting Cascade member HRCI Recertification credits or to obtain the discount code for your initial exam, contact Sheryl Kelsh.

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