2019 Legislative Report – Week 8
[The following is an excerpt from the Oregon State Chamber of Commerce’s (OSCC) Legislative Report. Any opinions expressed or implied are those of OSCC and do not necessarily reflect those of the Springfield Chamber or its representatives. A link to the complete update can be found at the bottom of this article.]
| Oregon’s Pay Equity ACT is in effect,Pay Equity Guide is now available |
| Effective January 1, 2019, Oregon’s Equal Pay Act requires that employees be paid equally for comparable work regardless of gender or any of Oregon’s ten other protected classes. The Pay Equity Guide, which you can view here, provides helpful information for employers as they comply with the new law. The guidance includes an overview of the law, frequently asked questions, a guide for employers on self-evaluations, a sample checklist of policies and practices, and a calculation tool created to assist employers in determining where they have potential wage gaps between employees. |
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Activity on Major Issues
Cap & Trade. (HB 2020) On Monday, the Joint Committee on Carbon Reduction heard from the Oregon Department of Forestry about sequestration on Oregon forestland. The report explained that Oregon forests sequester half of all carbon that we emit annually (31 million metric tons of carbon). The presentation was eye-opening, particularly since Oregon’s carbon reduction goals that were set in the early 2000s were developed without acknowledgment of the sequestration potential from Oregon’s farms, forestlands, or even urban tree stands. In light of this new information,the state is already well-on-its-way to meeting the carbon reduction goals established by the bill. The Joint Committee is still working on amendments to HB 2020, which should be available at the end of the week. We are expecting brand new amendments, and perhaps a total re-write of the bill, to be unveiled this week. We are not anticipating major improvements to the bill, but because the amendments are being closely guarded, we really have no idea what the new amendments will include. There are currently not enough votes to pass this bill, but we believe a bill will pass. It will likely undergo numerous re-writes over the next few months to accommodate concerns from OSCC and others who represent businesses that will be impacted.
Kicker. (HB 2975) OSCC missed this bill, as did every other business group, but House Republicans found out at the 11th hour that HB 2975 included an accounting change that reduced the upcoming kicker by over $100 million by transferring this money into the next biennium. HB 2975 has the effect of adding an additional $100 million of revenue into the 2019-21 budget by taking it out of the $748 million personal income kicker due to taxpayers next year.
Corporate Tax Increases. We still believe the committee is leaning toward selecting a Commercial Activity Tax, which is a pure gross receipts tax, as the basis for implementing a new business tax. The debate here is how much the legislature wants to raise. House Democratic leadership wants to raise business taxes by $3.4 billion per biennium. Senate Democratic leadership wants to raise business taxes by $2 billion. We want all chambers and businesses to understand that the Commercial Activity Tax is being discussed ‘in addition to’ current business income taxes, not ‘in lieu of.’
Age Discrimination. (HB 2818) On Wednesday, House Business & Labor Committee held a hearing on HB 2818, which makes it an unlawful employment practice for an employer to seek the age of an applicant or to include certain words or phrases in recruitment that suggest age preference. The most problematic part of HB 2818 is the penalty structure. Under this bill, a court may award liquidated damages equal to twice the economic compensatory damages awarded or $25,000, whichever is greater. OSCC has joined a coalition business groups to oppose HB 2818.
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