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May 2022: Oregon Governor Signs Bill on Incentives, Bonuses, and Equal Pay Requirements

17 May


Update Applicable to:
All employers in the state of Oregon.

What happened?
On March 7, 2022, Governor Brown signed Senate Bill 1514 (SB 1514) into law, extending the expiration date of temporary amendments to Oregon’s Equal Pay Act.

What are the details?
To provide employers with greater flexibility in attracting and retaining workers during the COVID-19 pandemic, the Oregon legislature amended Oregon’s Equal Pay Act in 2021 to temporarily exclude vaccine incentives, hiring bonuses, and retention bonuses from the Act’s definition of “compensation” for purposes of pay equity requirements.

Those amendments were set to expire on March 1, 2022; however, SB 1514 extends the expiration date of those amendments until “the 180th day following the expiration or termination of the declaration of a state of emergency issued by the Governor on March 8, 2020.”

Effective immediately upon Governor Brown’s signature on March 7, 2022, Oregon employers may offer vaccine incentives, hiring bonuses, and retention bonuses until 180 days (August 28, 2022) after the expiration of the COVID-19 state of emergency without running afoul of the Equal Pay Act.

For more information, please see the links below:

Senate Bill 1514 (SB 1514)

Article 1Article 2

What do employers need to do?
Employers should review the links provided above and take advantage of this time to offer incentives and bonuses before the expiration date on August 28, 2022.

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's Oregon PEO services can help you navigate complex employment laws and keep your business compliant.

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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