Understanding Oregon’s new Equal Pay Act of 2017.
Oregon Equal Pay Act (ORS 652.220)
Who does the Equal Pay Act apply to?
All employers with one or more employees performing work in the state of Oregon.
What does the Equal Pay Act require?
There are many components of Oregon’s Equal Pay Act and you should consult with an attorney to understand them all. However, there are two new requirements that most employers will find most important. First, the law prohibits a prospective employer from inquiring as to the wage history of a prospective employee. Second, the law prohibits an employer from paying an employee more than other employees who belong to a protected class and perform work of a similar nature.
When does the Equal Pay Act go into effect?
The law went into effect on January 1, 2019. An employee can sue in court or pursue recourse through the Bureau of Labor and Industries.
What should employers do to ensure compliance and avoid liability under the Equal Pay Act?
There are many steps employers can and should take to prevent any violations under the Oregon Equal Pay Act. Hiring practices, job applications, and communications to third party staffing agencies should all undergo evaluation and new best practices should be implemented to comply with the nuances of the law. Moreover, the rule preventing disparate pay for comparable employees performing similar work allows for a safe harbor (limitation of liability) for an employer who performs a pay equity audit. The law establishes a limited set of bona fide factors an employer can rely on to pay employees different amounts despite the fact that they are doing the same work. Employers are advised to work with counsel to ensure compliance, documentation, and implementation to establish the safe harbor defense that will prevent unnecessary and costly litigation against them.
Moving forward:
In addition to ORS 652.220, which provides the text of the law, the Bureau of Labor and Industries has published a list of administrative rules that supplement the law. If you would like to further understand the new law and limit your liability, please reach out to our office to schedule a consultation.
