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Publications

MAKING SENSE OF PENDING LEGISLATION

Every two years, the Oregon Legislature generates about 3,000 legislative bills, resulting in an astonishing 1,000 passed.  Several issues are emerging in the seasons' flurry of activity as significant issues for business. These include renewable energy, family leave, and changes in unionization rules.  Below, EDCO provides members an overview and analysis of several key pieces of proposed legislation; our goal is to raise awareness and encourage action you deem appropriate to your organization. We'd like to thank Schwabe, Williamson & Wyatt for contributing legal expertise to the analysis. 

Proposed Legislation
Bill & Status If passed, the bill would… Analysis
Business Environment Issue
Renewable Energy Portfolio Mandate
(SB 838) Oregon Senate Environment and Natural Resources Committee; moved to the Senate floor 3/27.
Establish a Renewable Energy Standard (RES) that calls for Oregon’s utilities to gradually increase the amount of renewable energy in their electricity mix until 25% is supplied by new renewable resources by 2025. Smaller utilities are subject to lesser standard. The bill intends for more of Oregon's electricity to come from homegrown, renewable energy sources, such as wind, solar, hydro, biomass, geothermal, and wave energy. At the heart of the debate over this bill is whether enacting a renewable-energy portfolio standard will drive rates sharply higher in the near or longer-term. At best, proponents consider it cost-neutral. Business groups are concerned not only about the potentially high cost of renewables, but whether the bill contains meaningful protections for ratepayers (a cost cap is part of the bill) as utilities would be allowed to pass on renewable-associated cost increases without PUC examination. With respect to cost advantages of wind power, critics cite its inherently erratic nature, rising construction costs, and the uncertainty of federal tax credits beyond 2008. This bill appears to have considerable traction both in the House and Senate – most experts expect passage by considerable margins.
Workplace Issues
Changes in Unionization Rules – Automatically recognize a labor organization – without Employment Relations Board review - as the exclusive representative of employees when a majority sign an authorization card. At issue is the method of obtaining employee consent to unionization– by secret vote or authorization card. Union recognition based on a simple signature on an authorization card makes unionization a much simpler process. Those in opposition to the bill believe a secret vote best eliminates any harassment or intimidation as authorization cards are distributed and collected by union organizers.
  • HB 2891 With the House Business & Labor Committee; hearings held.
  • HB 2893 With the House Business & Labor Committee; hearings held.
Prohibit employers from requiring an employee attend any meeting or participate in any discussion regarding the employer’s opinions on political or religious matters. While this bill may appear to protect employees from harassment or coercion, it limits necessary business communication, such as those around a union vote, as well as any communication related to business activity that could be defined as either religious or political in nature. The bill would almost certainly lead to more litigation about the nature of “permissible” employer communication.
Overtime Pay (HB 2673) With House Business & Labor Committee. Public hearings held. Authorize Bureau of Labor and Industries (BOLI) to adopt rules permitting overtime pay for work after eight hours in a day (or when employer has adopted alternative workweek schedule such as 4, 10-hour shifts, after 10 hours in that day). This bill would allow BOLI to issue new rules requiring that overtime be paid after 8 hours of work in one day, rather than the current rule requiring overtime only after 40 hours per work week. While the new rules may also provide some leeway for employers who regularly schedule employees to work 4, 10-hour shifts, the proposed bill may generate problems relating to the definition of a “regular” work schedule. In addition, the bill may create confusing and differing standards of overtime liability for employees who work different schedules. Note: the bill does not overturn existing collective bargaining arrangements and does not apply to agriculture or critical nursing care.
 

Family Leave – Three bills below relate to family leave:


  • HB 2575 Referred to House Revenue Committee.




Provide up to 6 weeks partly paid leave to care for an ill family member or newborn baby. Deducts $1 per paycheck from employees at companies w/ at least 25 employees.




This bill and the following, 2485, would create new employee rights to paid family leave. Employers may incur additional expense but may benefit from reduced employee turnover. There is concern as to whether $500 (maximum per paycheck) is sufficient. In addition, there is concern that this bill would create substantial administrative responsibilities for employers and for the state, which would administer the program.
  • HB 2485 With the Human Services & Women’s Wellness Committee. Public hearings held.
Permit workers to use accrued paid sick leave when taking family medical leave. Existing state law allows employees to use accrued sick leave only for parental leave or where the employer’s policy would otherwise permit use of sick leave. This bill expands the employee’s right to use sick leave to other OFLA qualifying purposes such as to care for a sick child or for a family member’s serious health condition.
  • HB 2460 With the House Business & Labor Committee. Public hearings held.
Prohibit time off for disabled workers’ compensation injury from being counted against state family leave. Currently, workers’ compensation absences may be counted against an employee’s total OFLA leave if the workers’ compensation injury qualifies as a “serious health condition.” This law will place an increased burden on employers as a result of employee absences by permitting employees to use their full allotment of family medical leave, even if they have already used that amount of time through workers’ compensation absences.
Unemployment Benefits Tied to Passing Drug Test (HB 2441) Referred to House Workforce & Economic Development Committee Make receipt of unemployment benefits contingent on passing a drug test. This bill formalizes a 2006 Employment Department ruling that prevents employees from receiving unemployment benefits when the employer’s substance abuse policy has been violated. Based on feedback from numerous industry roundtables across the region in recent years, EDCO supports this bill.
Ability for Employee to Receive Compensation & Punitive Damages over Discrimination (HB 2260) Passed House. Enable employees to recover not only back pay but receive compensatory and punitive damages as well. For most types of discrimination under Oregon law (including discrimination on the basis of race, sex or religion), an employer’s liability is limited to back pay or reinstatement. This bill would, for the first time, allow employees to recover compensatory and punitive damages for this kind of discrimination under Oregon law. In addition, these damages would not be capped, unlike under federal Title VII.
Workplace Safety Complaint Reporting (HB 2259) Before the Business & Labor Committee; hearings held; 2nd reading held.
Increase the time frame from 30 to 90 days an employee has to file a complaint with Bureau of Labor and Industries (BOLI). This bill sets reasonable parameters for an employee who believes safety violations exist or have occurred to complain. Oregon state law already prohibits discrimination or retaliation against an employee for opposing unsafe working conditions. The proposed 90-day window nearly triples the current time frame.


 
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