Legislation would put owners in a 'guilty until proven innocent situation.'
Small business owners in Oregon need to be aware of a bill that would allow the Bureau of Labor and Industries (BOLI) to shut down businesses without due process.
House Bill 2386 would authorize BOLI to issue temporary cease and desist orders under certain circumstances involving alleged violations of wage or employment condition laws. However, the allegations don’t have to be substantiated first, putting businesses in a “guilty until proven innocent situation,” says NFIB Oregon State Director Jan Meekcoms.
“This is another troubling bill from BOLI that authorizes [the agency] to shut down all or a portion of a business without due process,” says Meekcoms. “This is a ‘you are guilty—now, small business owner, prove your innocence’ approach. This is not what America is about.”
Proponents say the proposed law, and others like it, will strengthen the ability of the Bureau of Labor and Industries to end wrongdoing. But business owners would bear the brunt of the new process and could be tied up in false claims, critics point out. This puts a significant weight on small business owners and contributes to a climate of fear.
“Small business owners would have to get a lawyer to defend themselves in court,” Meekcoms explains. “In that time, the business is shut down; employees are not working and getting paid.”
If a business is proven innocent after going through the courts, “there is no compensation, no repayment, no assistance while it’s shut down,” says Meekcoms. “Should BOLI be wrong, there are not any compensatory provisions for attorney’s fees or loss of production or loss of wages for the wronged employer. This creates an ominous threat hanging over the heads of employers.”
How would this bill affect your business? Tell us in the comments section below.
