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Legislative Update

    NOTABLE BILLS ADVANCING (05-05-2025)

    HB 2125 – Waiver of Unemployment Waiting Period in Emergencies

    • What It Allows: Enables the Oregon Employment Department to waive the standard one-week waiting period for unemployment benefits during state-declared emergencies related to severe weather.
    • Employer Impacts: Could help employees access unemployment benefits faster during temporary closures, potentially easing financial hardship. May result in increased unemployment claims during emergencies.
    • How Employers Can Help:
      • Notify affected employees about this option during emergency-related shutdowns
      • Ensure timely and accurate unemployment claim responses.
      • Stay informed about emergency declarations impacting operations.

    HB 2236 – Classification Flexibility for Leased Employees

    • What It Allows: Permits staffing agencies and employee leasing companies to elect whether leased employees are treated as their own employees or as employees of the client company for purposes of unemployment insurance.
    • Employer Impacts: Offers clarity and flexibility in managing unemployment claims. It could affect how responsibility is shared between leasing agencies and client employers.
    • How Employers Can Help:
      • Coordinate with staffing partners to understand classification decisions.
      • Review contracts and HR policies to align with the chosen classification.
      • Train HR/payroll teams on potential implications for unemployment claims.

    HB 3838 – Home and Community-Based Workforce Standards Board

    • What It Allows: Creates a new board with authority to regulate wages, working conditions, training, and more for direct care workers in home care, adult foster homes, and related settings.
    • Employer Impacts: Could introduce new compliance requirements and costs for affected employers. It may help stabilize the workforce through improved conditions and standardized expectations.
    • How Employers Can Help:
      • Monitor developments and prepare for possible regulatory changes.
      • Engage in the public comment process if applicable.
      • Begin assessing current practices against potential standards.

    SB 957 - Continues to progress and would invalidate noncompete agreements for certain licensed healthcare providers. This measure appears likely to become law.

    WA HB 1308 - Washington Personnel File Law Update (For employers with WA-based employees) Washington has officially defined “personnel file” and now requires employers to:

    • Provide the file within 21 days of an employee’s request.
    • Provide a written statement of the termination date and reason, upon written request.
    • Comply or face potential legal action, including attorney fees and statutory damages. A five-day notice of intent to sue is required before filing.

    NOTABLE BILLS ADVANCING (04-02-2025)

    HB 3753 – Increased Standard Deduction

    • What It Allows: Increases the Oregon standard deduction allowed for personal income taxpayers, reducing taxable income and increasing take-home pay.
    • Impact on Employers: This could ease financial stress for employees, potentially reducing wage pressure. However, it may also affect state tax revenue, which could impact public services and funding for workforce programs.
    • How Employers Can Help:
      • Educate employees about potential tax savings and how it affects their paychecks.
      • Encourage employees to review and adjust their W-4 withholding if necessary.
      • Stay informed about any updates to payroll tax tables.

    HB 3914 – Tip Income Tax Exemption

    • What It Allows: Creates a personal income tax subtraction for tips received by workers in hospitality and service industries, allowing them to keep more of their earnings.
    • Impact on Employers: This could help attract and retain workers in service sectors facing labor shortages. However, it may prompt discussions about wage structures and employer reporting obligations.
    • How Employers Can Help:
      • Ensure payroll systems are updated if the bill passes.
      • Provide clear guidance on how tip earnings and reporting requirements might change.
      • Work with payroll providers to confirm compliance with tax adjustments.

    HB 2234 – Overtime Pay Tax Exemption

    • What It Allows: Exempts overtime pay from personal income tax, reducing the tax burden on employees who work extra hours.
    • Impact on Employers: This could encourage employees to work additional hours, helping to fill staffing gaps. However, it may also create an expectation of more available overtime opportunities.
    • How Employers Can Help:
      • Communicate with employees about potential changes to overtime pay.
      • Ensure HR teams and payroll providers are prepared to handle new tax exemptions.
      • Review staffing and overtime policies to balance employee expectations with business needs.

    NOTABLE BILLS ADVANCING (03-2025)

    SB 916: – Unemployment Benefits for Striking Workers

    • Allows striking workers to collect unemployment insurance (UI) benefits after two weeks of striking.
    • Employers may collect overpayments and reduce back pay if workers are eligible for both UI benefits and back pay in a final contract.
    • Status: Passed the Senate (16-12); now facing opposition from public employers and school districts in the House.

    SB 426: – Contractor Wage Liability

    • Would impose joint and several liability on property owners and general contractors for unpaid wages.
    • Includes unpaid wages, fringe benefits, penalties, and attorney fees, meaning general contractors could be held responsible for a subcontractor’s wage violations and vice versa.
    • Impact: Increased financial risk for developers and contractors managing subcontractor relationships.

    SB 468 & SB 1139: – Restrictions on Non-Compete and Non-Solicitation Agreements

    • SB 468: Would make non-compete agreements with health care professionals void and unenforceable (mirroring laws in other states).
    • SB 1139: Would apply the same statutory requirements for non-compete agreements to non-solicitation agreements.
    • Impact: Employers in the healthcare sector and other industries may need to revise employment contracts.

    SB 906 & SB 968 – Payroll Transparency & Overpayment Limits

    • SB 906: Requires employers to explain paystub codes with clear details to employees.
    • SB 968: Limits how and when employers can recover wage overpayments:
    • Employers must act within 90 days of discovering an overpayment.
    • Recovery is capped at 5% of an employee’s gross wages per pay period.
    • Impact: May require payroll system updates and policy changes.