March 23, 2023
Employment Alert: 
Proposed Legislation to Seek Changes to Oregon's Equal Pay Act
Oregon legislators introduced a bill this session that would amend the Oregon Equal Pay Act to exempt certain bonuses (such as signing and retention bonuses) from equal pay calculations. 

Oregon’s current equal pay laws require all types of compensation, including bonuses, to be considered in determining whether there is a pay disparity. Employers cannot pay an employee a higher rate than a coworker for similar work unless the pay disparity is justified by factors such as seniority, education, training, or experience.

Oregon House Bill 3205, which is backed by both public and private employers, would amend the Equal Pay Act to exempt hiring and retention bonuses from equal pay calculations. Proponents of the bill argue that this change in Oregon’s equal pay laws will help local businesses keep and attract employees, which has been no easy task since the onset of the COVID-19 pandemic in 2020. Opponents of the bill caution that the proposed amendments provide no protection to ensure that hiring and retention bonuses are paid equitably and universally. Without those protections in place, opponents fear that unconscious bias will lead to pay discrimination when employers offer bonuses to workers.

Oregon is an outlier amongst states throughout the country and is the only state that includes bonuses for purposes of equal pay calculations. HB 3205, if passed, would bring Oregon back in line with the policies of other states. In response to the pandemic, Oregon previously amended Oregon’s Equal Pay Act to exempt hiring and retention bonuses from equal pay calculations, but those changes expired in September 2022. 

House Bill 3025 is currently in the House Business and Labor Committee. If passed out of committee, it will then go to a full vote before the Oregon House of Representatives before heading to the Senate.

The current text of HB 3205 can be found here.

If you have any questions regarding Oregon’s Equal Pay Act or with compliance with Oregon, Washington, or Federal employment laws more generally, please do not hesitate to contact the FWW Employment Attorneys below.
Kelly Tilden  focuses her practice in the areas of employment law, business, and litigation. She advises clients regarding the hiring, discipline and termination of employees, compliance with state and federal civil rights, wage and hour laws, and leave laws. Kelly offers practical guidance and experienced-based insight to help employers confidently apply state and federal regulations. She has been selected by her peers for inclusion in the Best Lawyers in America® 2018-2023 for Employment Law - Management.

Contact Kelly at 503.228.6044 or ktilden@fwwlaw.com
Trish Walsh focuses her practice in the areas of litigation and employment law, protecting clients' interests inside and outside the courtroom. In her employment practice, Trish drafts, audits and updates policy handbooks and provides advice on employment issues under Oregon, Washington and federal laws. She has been selected by her peers for inclusion in the Best Lawyers in America® 2023 for Commercial Litigation.

Contact Trish at 503.228.6044 or twalsh@fwwlaw.com
Kim McGair's practice emphasizes a wide range of litigation matters including employment, commercial litigation, commercial collections, personal injury defense, and real estate litigation. She is an advocate for her clients and provides them with sensible advice and strong representation to protect their interests and help them achieve their objectives as efficiently as possible. Kim was selected by her peers for inclusion in the Best Lawyers in America® 2018-2023 for Commercial Litigation and to the Oregon Super Lawyers list 2019-2022 for Commercial Litigation.

Contact Kim at 503.228.6044 or kmcgair@fwwlaw.com
Jon Himes practices in several areas including litigation, employment, and financial services, enabling him to assist clients with a full-range of legal and business challenges. His employment practice focuses on employment litigation and wage and hour laws. 
 
Contact Jon at 503.228.6044 or jhimes@fwwlaw.com
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The contents of this publication are intended for general information only and should not be construed as legal advice or opinion on specific facts and circumstances.