NewsBrief – August 2025
In This Issue:
- New Oregon Laws Taking Effect September 26th
- Federal Tax Act Signed Into Law Affecting Taxes on Tips and Overtime Wages
- E-Verify Guidance for Employment Authorization Document Revocation
- OFCCP Resumes Enforcement and Closes Pending Audits Under Section 503 and VEVRAA
- 2025/26 Salary Budget Survey: Open for Participation!
- Hot Compliance Question
- Five Things You May Not Know About Liberty House
Compliance Corner: Background Check 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 Check Guide. This guide helps Oregon employers stay compliant by outlining state and federal restrictions related to salary inquiries, credit checks, employment history, and criminal background questions. It also details how to conduct a compliant background check under the Fair Credit Reporting Act (FCRA) and Equal Employment Opportunity Commission (EEOC) to prevent discriminatory hiring practices!
New Oregon Laws Taking Effect September 26th
Cascade Compliance Team
compliance@cascadeemployers.com
Oregon’s 2025 legislative session resulted in the passage of numerous employment-related bills. Below are summaries of two widely applicable bills from that session, which will take effect on September 26th.
Senate Bill 69 – PLO & OFLA Administrative Updates
SB 69 makes administrative and technical modifications to both Paid Leave Oregon (PLO) and the Oregon Family Leave Act (OFLA). Many of these changes largely clarify, update, or formally codify practices already in effect under existing laws. In addition, SB 69 explicitly assigns the Bureau of Labor and Industries (BOLI) as the primary authority for anti-discrimination and retaliation in PLO.
The OFLA modifications are as follows:
- Sick Child Leave Clarification: Clarifies OFLA sick child leave is only available if the child is under 18 or is substantially limited by a physical or mental impairment.
- Sick Child Leave Notice: Clarifies for school/childcare closure due to public health emergency, employees can take leave without prior notice, unless the Governor's declaration was issued at least 30 days prior to leave.
- Airline Crew Eligibility: Clarifies airline flight crew employees are eligible for OFLA if they have worked or been paid for at least 504 hours (not including vacation, sick, or leave days) during the previous 12 months. This now aligns with the federal Family Medical Leave Act (FMLA).
The PLO Modifications are as follows:
- Benefit Amount Disclosure to Employers: Permits the Oregon Employment Department (OED) to disclose PLO benefit amounts to employers for wage replacement calculation purposes.
- Return-to-Work Certifications: Allows employers to require return-to-work certification after PLO medical leave confirming that the employee can safely perform their essential job functions, but only if uniformly applied.
- OSL for PLO Reasons: Permits the use of Oregon Sick Leave (OSL) for any qualifying PLO purpose.
Before September 26, 2025, Oregon employers should update their PLO/OFLA policies and procedures to reflect the upcoming changes, and ensure that supervisors, managers, and HR staff are trained on the new verification and notice requirements.
House Bill 3187 – Age-Related Discrimination in Hiring
HB 3187 expands on Oregon’s existing age discrimination laws, which already prohibit employment discrimination based on age for individuals 18 and older. HB 3187 specifically restricts employers, employment agencies, and recruiters from asking applicants for their age, date of birth, or educational attendance or graduation dates before completing an initial interview or making a conditional job offer. Below are the key points of the bill:
Age-Related Inquires
Employers and employment agencies are prohibited from requesting age-related information such as an applicant’s age, date of birth, or educational attendance/graduation dates unless an initial interview has already taken place, or no interview occurs but a conditional job offer is extended to the applicant. It is important to note that when age-related questions are asked, they must be non-discriminatory and strictly tied to legitimate business reasons.
Exceptions
Employers may request age-related information prior to the initial interview or job offer only in specific cases such as:
- To determine if the applicant meets bona fide occupational qualifications (BFOQs), where age is a legitimate requirement for the job, such as certain safety-sensitive roles.
- To ensure compliance with legal requirements, such as verifying minimum legal working age requirements for a position.
Apprenticeship Programs
Apprenticeship programs can no longer reject applicants solely because of their age. Previously, apprenticeship programs could exclude applicants who would not complete the program before reaching the age of 70.
Before September 26, 2025, Oregon employers should review and update their application materials and hiring processes to ensure compliance, and train all individuals involved in the hiring process accordingly. Oregon employers with apprenticeship programs should also review their policies and procedures to ensure there are no age-based eligibility restrictions.
Federal Tax Act Signed Into Law Affecting Taxes on Tips and Overtime Wages
Cascade Compliance Team
compliance@cascadeemployers.com
On July 4, 2025, the Trump Administration signed the One Big Beautiful Bill Act (OBBBA) into law. Among its numerous provisions, OBBBA amends the federal income tax code to reduce the amount employees owe on tips and overtime wages. These tip and overtime tax changes apply retroactively from January 1, 2025, through the 2028 tax year. Following the signing of OBBBA, the IRS published a factsheet on July 14, 2025, detailing the no-tax-on-tips and overtime provisions. Below is a summary of the IRS guidance:
No Tax on Tips
New Deduction: From 2025 through 2028, employees and self-employed individuals in IRS-defined tipped occupations may deduct up to $25,000 annually in qualified tips reported on a W-2 or 1099 form. The deduction begins to phase out for individuals with an adjusted gross income of over $150,000, or $300,000 for joint filers.
Taxpayer Eligibility: Both itemizing and non-itemizing taxpayers are eligible for the deduction.
Reporting: Employers and payors must file information returns with the IRS and provide statements to taxpayers showing reported cash tips and the recipient's occupation.
Guidance: By October 2, 2025, the IRS will publish a list of occupations that qualify as tipped occupations.
No Tax on Overtime
New Deduction: From 2025 through 2028, individuals receiving qualified overtime pay may deduct up to $12,500 annually ($25,000 for joint filers) in overtime wages, specifically the premium amount above their base pay, that have been reported on a W-2 or 1099 form. The deduction begins to phase out for individuals with an adjusted gross income of over $150,000, or $300,000 for joint filers.
Taxpayer Eligibility: Both itemizing and non-itemizing taxpayers are eligible for the deduction.
Reporting: Employers and payors must file information returns with the IRS and provide statements to taxpayers showing the total amount of qualified overtime compensation paid during the year.
Guidance: The IRS has announced it will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and other payors subject to the new reporting requirements.
It is important to note that OBBBA’s no-tax-on-tips and no-tax-on-overtime provisions apply only to federal income tax and do not modify state tax laws. Therefore, Oregon’s state income tax withholding on tips and overtime wages remains in effect.
Additionally, the IRS has not yet issued official guidance or detailed rules regarding these provisions. Cascade will keep you informed as new information develops.
E-Verify Guidance for Employment Authorization Document Revocation
Cascade Compliance Team
compliance@cascadeemployers.com
On June 20, 2025, E-Verify published guidance on how employers can determine if employees’ Employment Authorization Documents (EADs) have been revoked by the Department of Homeland Security (DHS). E-Verify is a web-based system that allows employers to electronically confirm the employment eligibility of their employees. E-Verify registration is optional for most employers in Oregon, though federal contractors and subcontractors are generally required to use E-Verify.
Previously, E-Verify would notify employers through Case Alerts if an employee’s EAD has been revoked. However, employers will no longer receive these alerts. Instead, E-Verify advises employers to regularly generate Status Change Reports to determine if an employee’s EAD has been revoked. If a current employee appears on a Status Change Report, the employer should compare the employee’s EAD number on the report to the EAD card number presented when the employee completed their Form I-9. If the numbers are the same, the employer is required to reverify the employee’s employment authorization.
It is important to note that only employees who have had employment authorization verified through E-Verify will appear on a Status Change Report. Employees who completed I-9s prior to an employer enrolling in E-Verify will not appear on a report.
Employers enrolled in E-Verify should begin pulling reports on a regular basis and reverify employment authorization when required to remain in compliance with I-9 regulations. Instructions on how to generate Status Change Reports are available on E-Verify’s website.
OFCCP Resumes Enforcement and Closes Pending Audits Under Section 503 and VEVRAA
Cascade Compliance Team
compliance@cascadeemployers.com
On July 2nd, the Office of Federal Contract Compliance Programs (OFCCP) announced two important updates for federal contractors regarding enforcement of Section 503 of the Rehabilitation Act (Section 503), which prohibits disability discrimination, and the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA), which addresses nondiscrimination against veterans in employment. Specifically, the OFCCP:
- Immediately resumed processing Section 503 and VEVRAA complaints that had been on hold since January 2025.
- Closed all pending compliance reviews (audits) under Section 503 and VEVRAA. Federal contractors with a pending audit will receive a formal notification of the closure. Additionally, no further action will be taken relating to federal contractors scheduled for an audit.
This announcement follows Executive Order 14173 (EO), issued in January 2025, which ended OFCCP’s authority to enforce nondiscrimination and affirmative action requirements for women and minorities. While the EO did not eliminate OFCCP’s authority under Section 503 (disability) and VEVRAA (veterans), enforcement of these programs were temporarily paused to allow OFCCP to restructure.
It is important to note OFCCP’s renewed enforcement of Section 503 and VEVRAA applies only to employers with federal contracts or subcontracts of $10,000 or more. Federal contractors meeting this threshold must continue to comply with nondiscrimination requirements under both laws. While OFCCP is not currently requiring federal contractors to certify their affirmative action programs, those with 50 or more employees and contracts over $50,000 (for disability) or $150,000 (for veterans) must also still develop and maintain written affirmative action programs and be prepared to demonstrate compliance.
2025/26 Salary Budget Survey: Open for Participation!
McKenna Arnold, Survey and Research Manager
surveys@cascadeemployers.com
The 2025/26 Salary Budget Survey is here, and it is time to participate! This survey captures pay adjustment data – actual for the past year and projected for the upcoming year – for Oregon and Washington organizations.
This 6-question survey covers recent and projected base pay adjustments, along with variable pay practices and typical award levels. The questions are designed to capture both past-year and anticipated compensation trends across employee groups. Survey results are FREE to both member and non-member participants.
Your participation is crucial to understanding how other organizations are handling salary increases. By contributing your data, you help create a comprehensive resource that benefits all participants.
Contact us now to get your survey link or with any questions. Make sure to participate before August 30th to get access to your free report!
Thanks for continuing to help make our surveys great!
Hot Compliance Question
Cascade Compliance Team
compliance@cascadeemployers.com
Question: Can I prohibit employees from making online posts that could harm the company’s reputation?
Answer: It would be risky to implement a broad policy prohibiting employees from making online posts or comments that could have a negative effect on the company’s reputation. Section 7 of the National Labor Relations Act (NLRA) gives employees the right to engage in concerted activity, including discussing wages, working conditions, and other terms of employment. These rights are allowed even if such comments may harm the company’s reputation.
Therefore, policies that are overbroad or too vague will likely be seen as a violation of these rights under the NLRA. While employers can prohibit unprotected conduct like harassment or sharing confidential information, any policy must be specific and clearly written to avoid infringing Section 7 NLRA protections.
Five Things You May Not Know About Liberty House
By Sheryl Kelsh, Membership Development Manager
skelsh@cascadeemployers.com
At Cascade, we love shining a spotlight on the incredible work our members and community partners are doing—and Liberty House is a truly inspiring example. For more than 25 years, Liberty House has been a place of healing, hope, and resilience for children and families impacted by trauma. While many in the region know them as a safe and trusted resource, there’s even more to their story.
Here are five things you may not know about this remarkable organization:
- They've supported over 16,000 children—and counting
Since opening their doors in 1999, Liberty House has helped more than 16,000 children and families in Marion and Polk Counties. Through compassionate care and specialized services, they’ve become a pillar of support for those navigating incredibly difficult experiences. Their work is about more than intervention—it’s about helping kids heal, thrive, and find joy again.
- They're nationally accredited—and that's a big deal
Earlier this year, Liberty House earned full accreditation from the National Children’s Alliance, a gold standard in the field of child advocacy. This means they meet the highest national standards for care, coordination, and outcomes—a distinction that only about half of centers in Oregon hold. It’s a testament to the skill, dedication, and heart behind everything they do.
- They offer a full circle of care
While many people associate Liberty House with child abuse assessments, that’s just part of their work. Their Hope & Wellness Services provide trauma-informed therapy not just for children, but for adult survivors as well. They also offer prevention programs, professional trainings, and community education—empowering schools, parents, and youth with the tools to stay safe and connected.
- They're creating tools just for teens
Liberty House created an innovative program called myWorth, specifically designed for middle school students. It emphasizes building healthy relationships, understanding online safety, and fostering confidence and resilience. It’s already implemented in local schools, and with support, Liberty House aims to expand it statewide—and beyond.
- They provide excellent online resources for parents and other adults
Liberty House offers a wide range of resources on its website designed to support parents, caregivers, and other adults in keeping children safe and healthy. From tips on how to talk to kids about tough topics to guidance on recognizing signs of abuse, their online tools are easy to access and thoughtfully written. Whether you're looking for prevention strategies, self-care resources, or printable materials to share, their site is a valuable hub for anyone invested in child well-being.
Liberty House reminds us that with the right support, healing is possible—and every child deserves the chance to grow up safe, strong, and loved. We’re proud to celebrate their work and share their story with you.
If you'd like to learn more or get involved, visit libertyhousecenter.org.