All Employers with OR Employees
January 1, 2020
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Senate Bill 123 provides clarity to a few aspects of the Oregon Equal Pay Act (EPA), as well as a voluntary equal pay analysis safe harbor.
Under the EPA, employers are required to pay employees the same rate for work of comparable character, unless the pay differential can be attributed to one or more bona fide factors, such as a seniority system, merit system or system that measures earnings by quantity or quality. SB 123 updates the definition of a “system” to mean “a consistent and verifiable method in use at the time that a violation is alleged.”
The bill also clarifies that employers may pay different levels of compensation to employees who are performing modified work due to a medical condition that is either (a) authorized by a healthcare professional, or (b) requested by the employee and authorized by the employer in a manner that does not discriminate based on a protected class.
Finally, SB 123 provides employers a “safe harbor” from potential compensatory and punitive damages. Employers must conduct an equal pay analysis that includes a review of practices designed to eliminate unlawful pay differentials, and makes reasonable and substantial progress towards eliminating such pay differentials, for all employees.
- Review the amended Equal Pay Act here.
- Implement equal pay analysis procedures to review and correct disparities in pay.
- Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.
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