Oregon Pay Equity Law
Last year, Governor Kate Brown signed into law H.B. 2005, which creates considerable new obligations and areas of liability for Oregon employers. The law prohibits pay discrimination on the basis of protected class, defined as race, color, religion, sex, sexual orientation, national origin, marital status, veteran status, disability or age. In other words, employers may not pay employees performing comparable work at different rates of pay because of their membership in one of these protected classes.
The law has also prohibited employers from screening job applicants based on current or past compensation and from determining compensation for a position based on a prospective employee's current or past compensation. Employers will be able to inquire only about a job applicant's salary history after making a job offer including a compensation amount. This should already be in place since the law was effective October 8, 2017.
Every employer in Oregon is affected by this new law. Below are the steps that you need to take to ensure you are compliant with this new law. A demanding and very important part of compliance is for you to complete a pay equity analysis.
HR Answers has been on the forefront of developing the tools and providing the resources to assist their clientele with the pay equity analysis. They will also have workshops available on this subject matter.
To do immediately, if you have not already done so:
- Discontinue asking job candidates and current employees about salary history. This includes updating your job applications to remove any section that asks for previous salary information.
To complete by December 31, 2018:
- Complete the internal pay equity analysis and implement a corrective action plan (if needed).
HR Answers has developed toolkits to assist in completing the pay equity analysis process. The tools have been designed to assist small and medium size organizations with reaching compliance with Oregon's revised Pay Equity Law.
The next major milestone for compliance is January 1, 2019. This milestone includes the completion of job comparison (based on the law's five comparable characteristics), completion of a total compensation equity analysis, and corrective actions. There are packages of information depending on your organization's size.
If your organization has fewer than five (5) or more than 50 jobs, HR Answers would be happy to estimate the most expeditious and compliant process for your organization's need.
Please visit the Resources page of the HR Answers website to view the Oregon Pay Equity Products options and don't hesitate to call (503.885.9815/877.287.4476) with any questions you may have.
The discount code for members of SDAO to purchase these products is SDAOPE2018.
HR Answers has provided a summary for employers as to what they need to do to ensure compliance with this new law.
More information can also be gathered from the BOLI website. BOLI will be providing administrative rules in the next few weeks, though no exact date of the release of the rules has been given as yet.