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Equal Pay is soon to be Law in Oregon

May 30, 2017 / Phil Lesch

On March 9 we reported that the Executive Council endorsed HB 2005. Since that time it has gone through both the House and Senate with minor modification. HB 2005B is now on the Governor's desk awaiting signature, and she is expected to sign the bill into law very soons. 

HB 2005 B provides that employer may pay employees for equivalent work at different compensation levels if entire difference in compensation levels is based on bona fide factors related to position in question and is based on merit, seniority, quantity or quality of production, workplace locations, travel, education, training, or experience.

The law makes it an unlawful employment practice to screen applicant based on their salary history or to determine compensation based on applicant's or employee's salary history. Allows use of salary history for internal hires and transfers.

The law prohibits employer from seeking salary history until offer of employment that includes compensation is made and prospective employee provides written authorization.

The law expands remedies for pay equity violations and retaliation for wage inquiries and wage claims under Oregon’s unlawful employment discrimination laws to include right to compensatory and punitive damages and jury trial. 

The law establishes criteria for court to award punitive damages. Provides prevailing party costs and reasonable attorney fees at trial and on appeal. Limits liability of employer who has conducted equal-pay analysis within last three years, eliminated wage differential for plaintiff, and made reasonable and substantial progress toward eliminating wage
differentials based on protected classes asserted by plaintiff.

the law requires the employer, subject to Labor Commissioner's final order in favor of complainant, to pay lesser of: back pay for the two-year period immediately preceding the filing of the complaint and the period between filing of the complaint plus issuance of the final order, or back pay for the period that the complainant was subject to an unlawful
wage differential plus the period between filing of the complaint and issuance of the final order.

The law clarifies that plaintiffs have one year to bring claim. Extends time limitation to bring claim by making actionable each payment based on underlying discriminatory practice. Extends time for public employee to notify public employer of claim from 180 days to 300 days following discovery of alleged loss or injury.

The law requires employer to post notice of pay equity requirements, and requires Bureau of Labor and Industries to provide template of pay equity requirements to employers.

The prohibition on seeking salary history becomes effective 91 days after adjournment sine die. Screening and compensation discrimination provisions become effective January 1, 2019. Allows actions alleging violations of salary history inquiry provision starting January 1, 2024.

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