NewsBrief – August 2024
In This Issue:
- Reminder – OFLA Changes Took Effect July 1
- BOLI Finalizes OFLA Administrative Rules
- Paid Leave Oregon Equivalent Plans: Often a Better Choice
- 2024 Northwest Employee Benefits Report Now Available!
- 2024/2025 Salary Budget Survey: Open for Participation!
- Hot Compliance Question
- Five Things You May Not Know About Josephy Center for Arts and Culture
Compliance Corner: Oregon Equal Pay Act 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 Oregon Equal Pay Act Guide. Oregon’s Equal Pay Act is a state law that requires employers to equally compensate all employees who perform work of comparable character, unless a bona fide factor exists to explain the pay differential. This guide dives into all aspects of Oregon’s Equal Pay Act including what constitutes work of comparable character, how to justify pay differentials with bona fide factors, how to conduct an equal pay analysis, and employer requirements.
Reminder – OFLA Changes Took Effect July 1
Cascade Compliance Team
compliance@cascadeemployers.com
Senate Bill 1515, passed in March 2024, made significant changes to the Oregon Family Leave Act (OFLA) and Paid Leave Oregon (PLO) which took effect July 1.
We invite you to view this video alert reviewing the main changes.
BOLI Finalizes OFLA Administrative Rules
Cascade Compliance Team
compliance@cascadeemployers.com
In early July, BOLI finalized administrative rules to clarify the Oregon Family Leave Act (OFLA) changes that went into effect on July 1, 2024. The major highlights are as follows:
- To determine an employee’s average hours of work per week for eligibility purposes, the employer must count actual hours worked using guidelines set out pursuant to the federal FLSA.
- BOLI had previously finalized a rule on March 1, 2024, that stated protected leave must also be counted when determining average hours of work per week. This is no longer the case.
- An employer may not require medical verification for child placement leave, bereavement leave, or sick child leave for school closures/childcare closures as a result of a public health emergency.
- Employers may not request medical verification for leave after the employee has already qualified for that leave. Subsequent recertifications for the same reason for leave are not permitted.
- Employers may not require second or third medical verification opinions.
It is important to note that the proposed administrative rules removed language allowing employers to require the use of accrued paid leave while an employee is on OFLA leave. However, this change was not included in the finalized rules. This means that employers may continue to require employees to use their accrued paid leave while on leave under OFLA even though the leave is running concurrently with the Federal Family Medical Leave Act (FMLA). However, as a reminder, if an employee is taking Paid Leave Oregon (PLO) and FMLA simultaneously, an employer cannot require the use of accrued paid leave while that employee is on leave.
As a reminder, OFLA applies to Oregon employers with 25 or more employees. OFLA eligible employers should review their OFLA policies and procedures for compliance and train supervisors on these administrative changes.
Paid Leave Oregon Equivalent Plans: Often a Better Choice
By Patrick Sullivan, Benefits Consultant at CSNW Benefits
patrick@csnwinc.com
If your organization uses Paid Leave Oregon, you and/or your employees may have experienced a range of frustrations relating to wait times, access to benefits, or cost (or all three). If you can relate to these frustrations, an equivalent plan might be the right solution for your business.
Advantages of an Equivalent Plan
- Lower Costs – Because equivalent plans are underwritten, they have flexible pricing versus the State’s fixed 1% payroll tax rate.
- Expedited Claims Processing – Claims are processed faster and their status can be tracked as they work their way through the system.
- Employee Flexibility – More flexibility around use of intermittent leave.
- A Better Experience All Around – A dedicated employer portal simplifies administration and provides enhanced support for both employees and employers.
When It Makes Sense
If your organization has more than 25 W-2 Oregon employees, an equivalent plan can offer significant cost savings.
Case Study – Real Results for a Local Business
In 2023, following a cost-benefit analysis of the Oregon Employment Department PLO program against an equivalent plan, a Salem-area Cascade member with 79 employees saved 22% on their leave program and reduced payroll taxes by $42,912 over a two-year period by switching to an equivalent plan.
Find Out if an Equivalent Plan is Right for You
The approach is simple: We gather payroll information from the employer, run quotes from available carriers, and pull together a cost analysis comparing the Oregon Employment Department PLO program to private equivalent plans, highlighting cost savings.
Reach out to CSNW Benefits, Cascade’s employee benefits partner, to request a PLO equivalent plan quote and cost-benefit analysis.
2024 Northwest Employee Benefits Report Now Available!
McKenna Arnold, Survey and Research Manager
surveys@cascadeemployers.com
Cascade is excited to announce that the 2024 Northwest Employee Benefits report is now available! This regional survey report is a great resource for benefits and policy data for Oregon and Washington organizations that want to ensure their benefits and rewards are competitive in today’s market.
Highlights of this year’s results include:
- Time-Off Practices
- For PTO (pooled) leave, an employee of one-year earns an average of 106 hours of PTO versus 191 hours of PTO for an employee of thirty years. In this survey, time-off is split by employee tenure (1, 5, 10, 15, 20, and 30 year breakouts) for better scale comparisons.
- Life Insurance, Disability, and Retirement Packages
- 81% of participants offer group life insurance to their employees, compared to last year’s 74%.
- Health & Welfare Benefits, including Vision and Dental Insurance
- While no surprise, Telemedicine/Virtual MD has continued to rise over the past several years as a health benefit offering. Once only offered by 56% of organizations in 2021, this offering jumped to 68% in 2024.
- Compensation Benefits Practices
- The average annual base salary increase for 2023 was 4.4%, with 57% of respondents offering 4% or more this year. Make sure to participate in our Salary Budget survey, out now, to get more detailed salary increases data.
- Diversity, Equity and Inclusion Practices
- 28% of respondents have a DEI strategy that is fully implemented, compared to 23% in 2023 and 18% in 2022.
- Other Policies and Practices
- The top additional creative benefits offered by participants include free food provided at the office (33%), workplace library (19%), and gas reimbursement (10%).
The survey consists of two final reports: A full report containing all participant information (124 participants), and a nonprofit report, containing nonprofit data only (59 organizations). These final reports are FREE to all member participants and are significantly discounted for non-member participants.
For more information about the survey, or to purchase the final report, please click here. A large thank you to all organizations that contributed to this survey and continue to make our surveys successful!
2024/2025 Salary Budget Survey: Open for Participation!
McKenna Arnold, Survey and Research Manager
surveys@cascadeemployers.com
The 2024/25 Salary Budget Survey is here, and it is time to participate in Cascade’s annual salary increase survey!
This survey gauges pay adjustments – actual for the past year and projected for the upcoming year – for Oregon and Washington organizations. As employers continue to focus on financial planning while balancing employee retention, now is the time to find out how other organizations are handling salary increases.
This survey consists of 6 questions:
- What is your employee count by group and area?
- What was your average base pay change between 7/1/2023 and 6/30/2024?
- What is your projected average base pay change between 7/1/2024 and 6/30/2025?
- Do you provide short-term performance-based variable pay to different employee groups?
- What is the average award as a percent of salary for the last 12 months?
- What is the projected average award as a percent of salary for the next 12 months?
This survey is FREE to both member and non-member participants. Contact us now to get your survey link. Make sure to participate before August 30th to get access to your free report!
Please contact us with any questions, and we look forward to receiving your survey response soon. Thanks for continuing to help make our surveys great!
Hot Compliance Question
Cascade Compliance Team
compliance@cascadeemployers.com
Question: What happens if I mistakenly classify an employee as an independent contractor?
Answer: Costs for an employer can potentially add up if an employee is wrongly classified as an independent contractor. If a misclassification happens, employers are frequently required by Oregon state agencies to pay back taxes, penalties and interest.
Additionally, employers may be required to pay a misclassified employee back wages, benefits, penalty wages, interest, and other additional civil penalties.
If you misclassified an independent contractor, it is recommended that you move the individual to employee classification immediately and contact an employment law attorney as soon as possible.
Various Oregon agencies will likely need to be contacted, as each agency handles misclassification differently. The agencies are generally:
- The IRS – in some circumstances, employers who misclassified may qualify for relief from employment tax liability.
- The Oregon Department of Revenue – regarding personal income taxes, transit taxes, and withholdings.
- The Oregon Employment Department – regarding employment taxes.
- Oregon’s Workers’ Compensation Division – regarding workers’ compensation coverage.
Five Things You May Not Know About Josephy Center for Arts and Culture
By Sheryl Kelsh, Membership Development Manager
skelsh@cascadeemployers.com
Nestled in the heart of Joseph, Oregon, the Josephy Center for Arts and Culture is a cultural gem dedicated to celebrating the arts and culture of Wallowa County and beyond. While many are familiar with the breathtaking beauty and vast recreation opportunities in and around Joseph Oregon, Josephy Center for Arts and Culture is yet another great reason to plan your next visit to the area.
Here are five intriguing aspects you might not know about this vibrant arts center:
- A Rich Historical Legacy
The Josephy Center for Arts and Culture is named in honor of Alvin M. Josephy Jr., a prominent historian, author, and advocate for Native American rights. His work significantly influenced the understanding of Native American history and culture in the United States. The center's library, the Josephy Library of Western History & Culture, houses a remarkable collection of his works and other historical materials, offering a deep dive into the region's past.
- Diverse Artistic Programs
The Center is not just an exhibition space; it is a bustling hub of artistic activity. From youth art classes and workshops to artist residencies and community events, the Josephy Center provides a platform for artists of all ages and skill levels. Their programs cover a wide range of disciplines, including ceramics, painting, photography, and more. The goal is to nurture creativity and provide educational opportunities for everyone.
- Focus on Inclusivity and Diversity
The Josephy Center is committed to promoting inclusivity and diversity within the arts. Their "Common Ground" exhibit is a testament to this commitment, showcasing works that explore themes of identity, culture, and social justice. The Center actively works to engage underrepresented communities and provide a space where all voices can be heard and celebrated.
- Community-Centered Events
The Center plays a crucial role in the local community, hosting a variety of events that bring people together. From the annual Wallowa Valley Festival of Arts to seasonal exhibitions and educational talks, the Josephy Center fosters a sense of community and shared appreciation for the arts. These events often feature local artists and provide a platform for community members to engage with art in meaningful ways.
- Environmental and Cultural Stewardship
The Josephy Center is deeply rooted in the environmental and cultural landscape of Wallowa County. They partner with local organizations to promote environmental awareness and stewardship through their programs. Additionally, the Center highlights the cultural heritage of the Nez Perce and other Indigenous peoples of the region, emphasizing the importance of preserving and honoring these traditions.
The Josephy Center for Arts and Culture is much more than an art gallery. It is a vibrant community space that honors the region's rich cultural history, promotes inclusivity and diversity, and provides a nurturing environment for artists and art enthusiasts alike. Whether you're a local resident or a visitor, the Josephy Center offers a wealth of opportunities to engage with the arts and explore the unique heritage of Wallowa County. For more information about their programs and upcoming events, visit Josephy Center for Arts and Culture.
Cascade is pleased to have the opportunity to feature Josephy Center for Arts and Culture as an outstanding member and employer.