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Oregon’s new Equal Pay Act and “Pay Equity Analyses” are all the rage in Oregon right now. The majority of the Act’s new requirements go into effect January 1, 2019. Let’s talk about 10 things you should do before the end of the year to make sure you are in compliance with the law.

  1. If you haven’t already removed past compensation questions from your job applications, do so now. The Act makes it unlawful to ask job applicants (or their prior employers) about their current or past compensation until after a conditional job offer that includes the amount of compensation is made.
  2. Train your hiring managers not to ask applicants about current or past compensation. The Act requires employers to pay people based on the job they are (or will be) performing, not what they were paid by a previous employer. Employers must not ask applicants about their current compensation. You can, however, ask applicants about their salary and compensation expectations – but be careful to frame the inquiry to expectations, and be aware that a badly phrased question is a potential violation of this particular provision of the statute.
  3. Rethink salary negotiations – in Oregon, those might be a thing of the past (!). The Act requires employers to pay employees who are doing comparable work the same, unless there is “bona fide factor” to explain the difference such as a seniority system, a merit system, training or experience, or another factor expressly listed in the law. Unless tied to one of those listed factors, market demands or negotiating skills are not bona fide factors justifying a pay disparity.

Continue Reading Pay Equity: 10 Things for Oregon Employers to Do Before the End of the Year

Almost six months ago, the California Supreme Court issued its decision in Dynamex, which dramatically altered the landscape pertaining to the classification of California workers as either employees or independent contractors.  This past Monday, the California Court of Appeal issued one of the first decisions interpreting that seminal case.

In Dynamex, the California Supreme Court issued a new, employee-friendly test for determining whether a worker is properly classified as an employee or independent contractor for the purposes of claims brought under California’s wage order – the “ABC” test.  Under the ABC test, the burden is on the hiring entity to establish that the worker is an independent contractor.  In order to satisfy this burden, the hiring entity must establish all of the following:  (1) that the worker is free from the control and direction of the hiring entity in connection with the performance of work; (2) that the worker performs work that is outside the usual course of the hiring entity’s business; and (3) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.
Continue Reading California Courts Slowly Interpret Dynamex

The 2017 Oregon legislature passed a “secure scheduling” or “fair work week” law that imposes significant requirements on certain categories of large employers.  The law, available here, goes into effect July 1, 2018.  We previously blogged about the law here.

Are You a Covered Employer? 

The law applies to retail, hospitality, and food services employers with 500 or more employees worldwide. 
Continue Reading Oregon’s Secure Scheduling Law Goes into Effect July 1: Are You Ready?

In yet another blow to agricultural employers, grab your stopwatches. In Carranza v. Dovex Fruit Co., the Washington Supreme Court has just held that agricultural employers are required to compensate piece-rate workers on a separate hourly basis for time spent performing tasks outside the specific scope of the piece-rate work.

In a narrow 5-4…

Employers in the Ninth Circuit (which includes Washington, Oregon, California, Alaska, Idaho, Montana, Nevada, Arizona, and Hawai’i) can no longer justify pay differentials between male and female employees based upon employees’ prior compensation. In an April 9, 2018 decision, Rizo v. Yovino, the Ninth Circuit Court of Appeals overruled prior Circuit law to hold that an employee’s previous compensation, either alone or in combination with other factors, cannot form the basis of a wage differential between men and women.

While the Equal Pay Act permits “a differential based on any other factor other than sex,” the Court held that an employee’s prior compensation is not a “factor other than sex.” Specifically, the Court held that the above “catchall” exception under the Equal Pay Act is intended to allow employers to rely upon only job-related factors, such as experience, educational background, ability, or prior job performance.  Prior compensation, the Court opined, is not job-related.
Continue Reading Ninth Circuit Rules That Basing Employees’ Wages on Their Prior Compensation Violates the Equal Pay Act

On October 12, 2017, California Governor Jerry Brown signed several bills regulating a wide range of employer actions, everything from the labeling of cleaning fluids to the employment application process.  While compliance with all of these new laws is important, four are of particular importance as they directly impact the information employers can seek from potential applicants, the training that must be provided to current employees, and protected leaves.

AB 168 and AB 1008 restrict the information employers can obtain from potential job applicants.  AB 168 makes it unlawful for California employers to either obtain or rely upon an applicant’s salary history to determine whether to offer an applicant a job or what salary to offer an applicant.  The law, however, does not prohibit a job applicant from voluntarily and without prompting disclosing to a prospective employer his or her salary history.  If a job applicant voluntarily discloses information in this way, then the employer is permitted to rely upon that history in determining the salary for that applicant.

AB 1008 imposes a statewide “ban-the-box” law.  Specifically, this law prohibits California employers with five or more employees from (1) including on any application for employment any question that seeks the disclosure of an applicant’s conviction history or (2) inquiring into or considering an applicant’s conviction history prior to providing that applicant with a conditional offer of employment.  The law also provides that employers who intend to deny an applicant a position of employment based upon that applicant’s conviction history must make an individualized assessment as to whether the applicant’s prior criminal history has a detrimental impact on the prospective employment.  Employers must also provide applicants with notice of a preliminary decision to deny employment based on the individualized assessment and allow applicants the opportunity to challenge the accuracy of their conviction history.  Prior to the signing of AB 1008, many local jurisdictions had enacted similar ordinances prohibiting the use of an applicant’s prior conviction history in the initial application process.  With passage of AB 1008, this prohibition is now statewide.
Continue Reading California Implements Significant Changes in the Employment Application Process, Employee Training, and Protected Leaves

Employers know that the salary rule for “white collar” exemptions from President Obama’s Department of Labor (“DOL”) was blocked by a federal court last year (we blogged about that here).  (UPDATE: A Texas federal court invalided the rule on August 31, 2017.)  That rule would have more than doubled the salary requirement for an overtime exemption.  Now, President Trump’s DOL has formally announced that it will not pursue that rule.  Instead, it is soliciting comments to draft its own rule.

Employers have an opportunity to weigh in on what, if any, changes should be made to the white collar exemptions.  The DOL’s request for information suggests it is seriously considering making at least some changes to the exemptions. 
Continue Reading Department of Labor Seeks Input on New Rules for White Collar Exemptions

The Washington Supreme Court case Brady v. Autozone recently addressed the standards that apply when a non-exempt employee alleges that an employer did not provide meal breaks.  In short: it is now clear that if a lawsuit is brought, employers are likely to bear the burden to show that break laws have not been violated.[1] 
Continue Reading The Washington Supreme Court Addresses Meal Break Claims

Oregon is poised to become the first state to enact a “secure scheduling” or “fair work week” law that will impose significant new employee scheduling requirements on certain categories of large employers.  Senate Bill 828, which will set new scheduling standards for employers with 500 or more employees worldwide in the retail, hospitality, or food services industries, passed the Senate last week and just passed the House.  It has now been sent to Governor Kate Brown, who has indicated she will sign the bill following a routine legal review.
Continue Reading Breaking News: Oregon Legislature Passes Employee Scheduling Bill

“Equal pay for equal work.”  Everyone – employees and employers alike – can agree that no workers should be paid less than others simply because of their gender, race, veteran status, or any other protected characteristic.  But the reality of the pay gap is more complicated.  Employers make salary decisions based on a number of business factors, like experience, education, and merit, as well as prior salary history.  The Oregon Equal Pay Act (the “Act”), which was unanimously approved by the legislature and is expected to be signed into law by Governor Kate Brown this week, will prohibit employers from asking job applicants about past salary history.
Continue Reading Time to Revise Your Job Applications: Oregon Prohibits Salary History Inquiries in Effort to Address Systemic Wage Inequality