With the Oregon Legislature wrapping up the 2019 session, it’s a good time to look at some of the upcoming changes in employment laws and the steps employers should take to prepare.
Minimum Wage and Minimum Salary Increase
It’s time again for the annual increase in the Oregon minimum wage. “Yay!” or “Boo!”, depending on whether you are on the receiving or the paying end!
In 2016, a new law took effect mandating preset annual increases to the minimum wage through 2023, after which increases are tied to inflation. The law also replaced the single statewide minimum wage with a three-tier minimum wage based on geographic location.
Employees in the Portland metropolitan area urban growth boundary receive the highest minimum wage (currently $12.00/hour); employees in non-urban counties receive the lowest minimum wage (currently $10.50/hour); and employees in the rest of the state receive the “standard” minimum wage (currently $10.75/hour).
On July 1, 2019, the minimum wage and minimum salary increase for all Oregon employees. The Portland area minimum wage increases to $12.50/hour; the standard rate increases to $11.25/ hour and the non-urban counties rate increases to $11.00/hour.
The Oregon Bureau of Labor and Industries (BOLI) website includes a chart summarizing the changes, a list of non-urban counties, and a map showing the geographic coverage of each rate.
The increase in the minimum wage triggers an increase in the minimum salary required to satisfy the “salary test” for the professional, executive, and administrative exemptions. On July 1, 2019, the minimum salary will increase from $480 per week to $500 per week in the Portland area, but remains at the federal minimum of $455 per week in the rest of the state.
Actions Employers Should Take:
- Implement the new minimum wage and minimum salary on Monday, July 1, 2019. If July 1 falls in the middle of your established workweek or pay period, you must still implement the increases on July 1. Discuss implementation with your payroll service and in-house payroll staff well before July 1.
- Post a new minimum wage poster. The poster can be downloaded for free from the BOLI website here.
- Revise policies and adjust wage and salary ranges on job descriptions and other documents to reflect the new minimum wage and minimum salary.
Reasonable Accommodation for Pregnancy
HB 2341, passed by the 2019 Oregon Legislature, requires employers with six or more employees to provide reasonable accommodation to female applicants and employees affected by pregnancy, childbirth, or related medical conditions.
Prior to this law, protection arose from multiple inconsistent laws, causing confusion and uneven protection for women. The new law, which takes effect on January 1, 2020, makes it clear that all pregnant applicants and employees are entitled to the same protections and rights — at least women working for an employer with six or more employees.
Actions Employers Should Take:
- Post a notice. Employers must post a notice (still under development by BOLI), in a conspicuous and accessible location to inform employees of the protections and rights available under the law.
- Give notice directly to employees. Employers must provide a copy of the notice to new employees at the time of hire, to current employees by June 29, 2020, and to a pregnant employee no later than ten days after the employee tells the employer she is pregnant.
- Revise your policies. Update your employee handbook and other policies.
- Train your staff. Train staff involved in recruitment and hiring, as well as those administering employment policies, before January 1, 2020.
Enforcement of Noncompetition Agreements
HB 2992, effective January 1, 2020, imposes yet another condition to ensure the enforceability of a non-compete covenant. Starting with noncompetition agreements entered into on or after January 1, 2020, employers must provide an employee with a signed, written copy of the noncompetition agreement no later than 30 days after the employee’s last day of work. If an employer does not provide a copy by the deadline, the noncompete is unenforceable.
Actions Employers Should Take:
- Update procedures for separation of employment. Update your termination checklist and procedures to include providing the departing employee with a copy of the signed noncompetition agreement. Optimally, the employer should provide the copy directly to the employee on their last day of work. Otherwise, the copy must be delivered to the departing employee no later than 30 days after their last day of work. If delivered, be sure to use a delivery method that provides proof of delivery.
- Train your staff. Staff responsible for separations from employment should be trained to always check a departing employee’s personnel file for a covenant not to compete, which may be a stand-alone agreement or part of an employment or confidentiality agreement.
Short Takes
SB 726 prohibits employers from entering into an agreement that prevents an employee from disclosing or discussing conduct that constitutes unlawful discrimination, including sexual assault.
SB 370 requires employers to give employees notice within three business days of receiving notice from a federal agency that it will be inspecting records relating to employee identity and authorization to work in the U.S.
SB 164 makes it an unlawful practice for an employer not to comply with the requirements of the Oregon Retirement Savings Plan.
Let us know if you have any questions or need assistance. We’re here to help!
