Employment Practices

Background

Oregon’s employers are reeling from a multitude of policy changes affecting their operations. In recent years employers have been asked to adjust to complex laws related to minimum wages, paid leave, pay equity, scheduling, working-hour limits and expanded liability for employee lawsuits. In addition, they have had to adjust to many and sometimes conflicting regulatory directives from state agencies. Even as they continue to adjust to complex legal and regulatory changes, employers face serious labor shortages. For 2026, OBI urges the Legislature to help businesses prosper and spare them additional regulatory and cost burdens.

OBI’s 2026 employment practices policy principles:

Alignment of Leave Laws: OBI seeks to expand on successes in recent years to more closely align all Oregon leave laws with federal leave laws to ease unnecessary administrative burdens on Oregon employers.

At-Will Employment: OBI opposes any efforts to undermine the standard of at-will employment.

Discrimination: OBI supports general principles of non-discrimination and existing laws. OBI opposes the expansion of causes of action as well as legislation that would expand the definition of discrimination beyond current law. OBI opposes legislation that would create greater burdens of proof for employers.

Family Leave: To create consistency for employers, OBI will promote legislation that removes duplicate family leave benefits under state and federal laws. OBI opposes any additional regulatory burdens, including the expansion of employer-paid leave mandates. OBI will promote legislation that helps the Paid Leave Oregon trust remain solvent but opposes legislation that would increase the taxes paid by employers or workers. Any increase in the Paid Leave Oregon contribution rate would be a tax increase and therefore subject to a 3/5 vote requirement, and OBI will forcefully oppose any attempt to characterize it otherwise. OBI opposes the creation of new leave laws.

Labor: OBI supports the right of employees to engage in fair and secret ballot elections in union organizing campaigns. OBI supports the right of employers to communicate their views on unionization with their employees and an election process that gives employers adequate time and a fair opportunity to convey their views. OBI opposes legislation or regulation, including card check systems, that would limit the ability of workers to vote in a secret ballot union election. OBI opposes mandates for union security agreements or closed shop policies. OBI opposes any expansion of employee rights to use employer resources for the purposes of organizing or other union-related activity. OBI opposes legislation requiring project labor agreements as they unfairly exclude many local contractors from bidding on public projects, therefore reducing competition. OBI opposes labor peace agreements that require employers to surrender rights protected under federal law.

Labor Boards: OBI opposes proposals that would delegate lawmaking authority to a board or commission. OBI supports the principle that any significant change in minimum wages or working conditions must be approved by the Legislature or should only be established in rulemaking processes in compliance with the Oregon administrative procedure laws.

National Labor Relations Board and Oregon Employment Relations Board Authority: OBI supports preserving NLRB authority and jurisdiction over private employers. OBI opposes any legislation or regulations that expand the current jurisdiction of ERB over private sector employers. OBI opposes expanding state agency authority over private sector labor relations. OBI seeks to preserve the Oregon Supreme Court ruling in Central Catholic Educ. Ass’n v. Archdiocese of Portland and opposes any legislation or regulations that would expand the current jurisdiction of the Oregon Employment Relations Board over private sector employers or employees, or the creation of any other state agencies to regulate private sector labor relations.

Non-Compete Agreements: OBI opposes legislation that would eliminate the ability of businesses to protect trade secrets and proprietary business information through enforcement of non-compete agreements. OBI opposes statutes and regulations that retroactively invalidate existing non-compete agreements.

Oregon OSHA: OBI opposes the expansion of Oregon OSHA authority to cite or penalize employers. OBI opposes increases in Oregon OSHA enforcement staff that are not preceded by increases in consultation staff. OBI continues to oppose any effort by OSHA to act outside of its statutory authority.

Overtime: OBI supports a flexible weekly overtime standard that mandates overtime payments for all hours worked in excess of 40 per week without requiring redundant extra pay for daily and weekly overtime. OBI supports legislation that restores employer flexibility without restraining the ability of employees to work overtime if they so choose. OBI supports the right of employers and employees to negotiate and agree to overtime and maximum working hours policies.

Pay Equity: OBI supports legislation that would prohibit pay discrimination based on the 10 protected classes listed in Oregon’s equal pay law while allowing pay differences based on any non-discriminatory reason. OBI recognizes the importance of hiring and retention bonuses and will support changes that allow employers to use these tools without incurring a violation of Oregon’s equal pay laws. OBI will support business necessity exceptions to the pay equity requirements.

Penalty Wages: OBI supports legislation that would limit liability for penalty wages when there is a dispute over wages due after an employee has left employment. OBI will advocate for clarification in the law so that it is limited to payment of final paychecks only.

Personnel Information: OBI supports appropriate personnel file policies that would protect the secrecy of confidential workplace investigations.

Preemption: OBI supports statewide preemption of employment-related mandates imposed by local governments.

Safety and Health: OBI supports policies and legislation that are consistent with the Oregon Court of Appeals ruling in OSHA v. CC&L Roofing, which determined that employers are not liable for supervisor misconduct. OBI opposes any rulemaking, regulatory action or legislation that undermines the basic principle that employers should not be liable for employee misconduct if employers had proper safety policies and training in effect.

SAIF: OBI opposes legislation that in any way would weaken the financial position of SAIF or reduces its ability to fulfill its statutory mission to make workers’ compensation insurance available to as many Oregon employers as possible. OBI opposes efforts to use employer paid funds for uses unrelated to workers’ compensation.

Scheduling: OBI supports legislation that would allow employers and employees flexibility in scheduling work hours as well as meal and rest break periods.

Unemployment Insurance Benefits: OBI supports strengthening provisions for denial of UI benefits for workplace misconduct and opposes the expanded use of UI benefits beyond their intended use, including legislative “sweeps” of UI funds, the diversion of UI funds for striking workers or employees on family or medical leave, or for job training purposes. OBI opposes legislation and rules that would eliminate the work-search requirement for UI eligibility. OBI opposes expanding the duration or circumstances for striking workers to use unemployment insurance benefits unless they meet other UI eligibility requirements. OBI opposes legislation and rules that would provide benefits to people who voluntarily choose to be unemployed or for employee leave benefits. OBI supports legislation that protects employers for increased taxes or experience rating for UI usage outside of the employer’s control.

Unemployment Insurance System: OBI supports legislation that would protect the integrity and solvency of the Unemployment Insurance Trust Fund while maintaining a stable and predictable tax structure.

Wage and Hour: OBI supports legislation that would create sensible meal and rest-break policies that would give employees flexibility without undue penalties for employers. OBI will promote legislation that would eliminate liability for employers when employees voluntarily return to work early after meal or rest breaks.

Workers’ Benefit Fund: OBI opposes legislation that would reduce or encumber the Workers’ Compensation Benefit Fund unless supported by the Management Labor Advisory Council (MLAC). OBI will advocate to protect the fund from being used for purposes unrelated to workers’ compensation and retraining for injured workers.

Workers’ Compensation: OBI supports the MLAC process and opposes legislation not approved by the process. OBI supports exclusive remedy protections for all Oregon employers and opposes legislation that would create presumptions for coverage. OBI supports a strengthened managed care organization structure and opposes legislation that would harm or eliminate self-insurance. OBI supports current definitions of “attending physician” and opposes the expansion of “attending physician.” OBI supports preserving the Mahonia Hall reforms that stabilized the workers’ compensation system. OBI will advocate for modernization and streamlining of processes for the benefit of employees, employers and insurers.

Workplace Drugs and Alcohol: OBI supports policies and legislation that support an employer’s right to apply and enforce zero-tolerance workplace drug and alcohol policies. OBI opposes policies and legislation that would weaken or undermine the Oregon Supreme Court’s decision in Emerald Steel Fabricators v. BOLI (2010). OBI opposes legislation that would encumber the ability of employers to enforce zero-tolerance workplace drug and alcohol policies and employer drug testing policies.