8/31/22: Temporary Exceptions to Oregon Pay Equity Law Set to Expire
August 31, 2022
As we have written about previously, the Oregon Legislature amended the Oregon Equal Pay Act to create an exception to the definition of “compensation” for a limited period of time in order to give employers greater leeway in hiring and retaining workers in the tight labor market. Under these amendments, employers can offer hiring and retention bonuses without them being considered “compensation” under the Oregon Equal Pay Act. These protections are, however, only temporary and are scheduled to expire on September 28, 2022.
Ordinarily, employers must make hiring and retention bonuses (and all other forms of compensation) available to all employees performing work of comparable character on an equal, non-discriminatory basis. If there are any differences in compensation between workers who perform work of comparable character, employers must justify the entire compensation differential on the basis of specific bona fide factors. Now that this exemption will soon expire, employers will once again need to consider how hiring and retention bonuses comply with the Oregon Equal Pay Act. Even with the limited exception under Oregon’s Equal Pay Act, employers still must be mindful of compliance with the federal Equal Pay Act.
Employers should also be mindful that they should issue their bonus payments on or before September 27, 2022, to be covered by this exemption.
As you may recall, the legislature also gave employers leeway to provide incentives for employees to get the COVID-19 vaccine. These protections will continue to remain in effect until the legislature removes them.
Click to access a PDF of this Electronic Alert.
For questions about pay equity compliance, contact Josh Goldberg at 503-276-2107 or jgoldberg@barran.com.
