3/1/22: SB 1514 Extends Pay Equity Exceptions

March 1, 2022

By Wilson Jarrell & Amy Angel

Last year, the Oregon legislature passed HB 2818, which made several notable amendments to Oregon’s Equal Pay Act, including a provision which temporarily exempted hiring bonuses offered to prospective employees and retention bonuses offered to existing employees from the definition of “compensation.” This was a crucial change, giving Oregon employers more leeway to offer bonuses to attract and retain employees in a particularly challenging labor market without violating Oregon’s Equal Pay Act. However, this amendment was temporary and was effective only until today, March 1, 2022.

Fortunately for employers, the Oregon legislature took up this issue again in the short session and passed SB 1514. SB 1514 extended the exemption of hiring and retention bonuses from the definition of “compensation” for Equal Pay Act purposes. The exemption is again temporary, this time set to expire on the 180th day after the expiration or termination of the current state of emergency. The Governor has indicated she will lift the state of emergency effective April 1, 2022, in which case the exemption will remain in effect until September 28, 2022. The bill currently awaits signature by the Governor.

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For questions about SB 1514 or for any other questions related to pay equity, contact Wilson Jarrell or Amy Angel at 503-228-0500, or at wjarrell@barran.com or aangel@barran.com.