Oregon has enacted legislation (Senate Bill 1514) that temporarily re-defines compensation under the state’s Equal Pay Act (the Act). Senate Bill 1514 is effective immediately and is scheduled to end on Sept. 28, 2022.
Under the Act, employers with one or more employees that perform work in the state must ensure that every worker receives equal pay for equal work regardless of their gender, race, age, or other protected characteristics, unless certain bona fide factors are met.
Under the law, “compensation” includes wages, salary, bonuses, benefits, fringe benefits, and equity-based compensation.
Senate Bill 1514 temporarily removes the requirement for employers to consider a hiring or retention bonus as “compensation” for purposes of pay equity requirements.
Oregon employers should review their pay practices, policies, and procedures to ensure compliance with the temporary changes under Senate Bill 1514.