Employment Law Updates 2017

Employers, the following bills passed in Oregon in 2017. Please read and beware!

SB 1587 Personnel Records (Effective January 1, 2017)

Employers must provide personnel records, including time and pay records, within 45 days of the date of the request. Examples include:

  • Job announcements
  • Applications
  • Resumes
  • Promotion records
  • Performance reviews
  • Supervisor notes pertaining to named personnel actions
  • Disciplinary records
  • Timesheets for the most recent 2 years
  • Payroll records for the most recent 3 years

SB 1532 Minimum Wage (Effective July 1, 2017)

  • Standard – $10.25 per hour
  • Portland metro area – $11.25 per hour
  • Nonurban counties – $10.00 per hour

Remember, minimum wage goes up annually

HB 3458 Manufacturing Overtime (Effective August 8, 2017)

  • Mills, factories and manufacturers must pay their employees daily overtime for all hours worked in excess of 10 hours in a work day, and weekly overtime for hours in excess of 40 in a work week.
  • Old law did not address what happens when employees are entitled to both daily and weekly overtime. The Bureau of Labor and Industries (BOLI) used to advise employers to “pyramid” the daily and weekly overtime and pay both.
  • Effective August 8, 2017, employers are required to calculate both daily and weekly overtime, and pay whatever the greater amount is. In other words, employers are no longer required to pyramid daily and weekly overtime.

Examples (from the BOLI website)

Day Hours Regular Daily OT Weekly OT
Monday 12 10 2 0
Tuesday 8 8 0 0
Wednesday 5 5 0 0
Thursday 5 5 0 0
Friday 11 10 1 1
Total 41 38 3 1

Employee’s regular rate of pay is $12 per hour.

41 hours worked x $12 = $492.00

3 hours daily overtime x $6 = $18.00

1 hour weekly overtime x $6 = $6.00

Because the employee would receive a greater amount of overtime if the daily overtime were paid ($18.00 as opposed to $6.00), that is the amount of overtime you should pay.

Total amount owed = $510

Example 2:

Day Hours Regular Daily OT Weekly OT
Monday 13 10 3 0
Tuesday 13 10 3 0
Wednesday 10 10 0 0
Thursday 12 4 2 8
Friday 11 0 1 11
Total 59 34 9 19

Employee’s regular rate of pay is $15 per hour.

59 hours worked x $15 = $885.00

9 hours daily overtime x $7.50 = $67.50

19 hours weekly overtime x $7.50 = $142.50

Because in this scenario the employee would receive a greater amount of overtime if the weekly overtime were paid ($142.50 as opposed to $67.50), that is the amount of overtime you should pay.

SB 299 Paid Sick Time (Effective January 1, 2018)

  • Clarifies that “employee” does not include an individual or the parent, spouse or child of an individual who is: a director of a corporation, a member of a limited liability company, a partner of a limited liability partnership who has a substantial ownership interest in the limited liability partnership, or a sole proprietor of a business.
  • Under the old law, employers were able to limit an employee’s carryover of sick leave to 40 hours per year. However, the statute did not address whether an employer could cap an employee’s annual accrual. The new law allows employers to cap the accrual of paid sick time to 40 hours per calendar year, no matter how many hours worked. With this change, an employer can limit an employee’s sick leave bank to 80 hours – 40 hours of sick leave accrued during the year plus 40 hours of carryover sick leave.
  • Amendments apply to hours worked and sick time accrued or used on or after January 1, 2018.

SB 828 Fair Work Week Act (Effective July 1, 2018)

  • Only applies to retail, hospitality and food service establishments that employ 500 or more employees worldwide.
  • Subject employers must:
    • Provide new employees with a written good faith estimate of the employee’s work schedule at the time of hire.
    • Provide current employees with a written work schedule at least 7 calendar days before the first day of the scheduled work week AND post the written work schedule in a conspicuous and accessible work location in the language the employer uses to communicate with the employee.
    • Give employees at least 10 hours off between shifts, unless the employee waives that right. If the employee is not given at least 10 hours off, the employer must pay 1.5 times the employee’s regular rate of pay for all hours worked in violation of the requirement.
    • Provide work schedule changes in a “timely manner.”
    • If schedule changes are made close to or on the day of the workers’ shift:a) Employees must be paid one additional hour of pay when hours are added by an employer without noticeb) Employees must be paid for half of hours not worked when they were scheduled to work but the employer cancelled
  • Employers cannot retaliate or discriminate against employees who exercise their work schedule rights.

HB 2005 Oregon Equal Pay Act (Effective January 1, 2019)

Applies to all employers with 1 or more employees. Prohibits employers from:

  • Requesting that an applicant or employee provide his/her salary history (effective October 6, 2017)
  • Paying employees different compensation amounts for work of “comparable character” based on protected class status. Defines work of “comparable character” as “work that is substantially similar based on the needs of the employer, the value of the work to the employer and the level of knowledge, composite skill, effort, responsibility and working conditions required in the performance of the work, regardless of job description or job title.”
  • Screening employees based on current or past compensation.

Violations will be enforced by BOLI. The bill also requires that employers post a notice of the new requirements in their workplace.

Please do not hesitate to contact Gordon L. Osaka, Attorney at Law, P.C., if you need help interpreting and/or applying these new laws at your business establishment.