Navigating the Oregon Legislative Maze

Date: April 19, 2017

Dear NFIB/Oregon members,

Sometimes the little wins can make a big difference for small business.

Nancy Faubel, an NFIB member from Douglas County, faced a terrible dilemma in 2015, when a former employee sued her. The former employee claimed that Nancy had not paid the full amount owed for the work that was performed, but Nancy kept meticulous records and knew she had done everything right. Nancy chose to seek representation and was able to retain a very experienced attorney that regularly represents both employers and employees in wage claim cases.

Her attorney wisely suggested that she try to settle out of court since a settlement would likely cost less than her attorney fees, but the plaintiff’s attorney rejected Nancy’s settlement offer. Ultimately, they went to court, and at great personal expense, Nancy was able to prove her case and win.

Along the way, Nancy and her attorney identified a somewhat ambiguous section of the law that was enacted in 2001 after it was brought to the Legislature’s attention that employer penalties for unpaid wages, in many cases, far exceeded the amount of the actual unpaid wages, often 30 days’ pay. The 2001 bill still allowed for the 30-day penalty, but created a remedy that benefited both employees and employers.

• The 2001 law protects employers by requiring a written notice of nonpayment, and allowing the employer a 12-day window of opportunity to pay the unpaid wages, with the penalty being equal to the amount of the unpaid wages, thereby incentivizing employers to pay quickly and potentially avoid a much larger penalty (like the 30 days’ wages penalty) and/or litigation.
• It also protects employees by ensuring that their unpaid wages are paid as swiftly as possible rather than incentivizing plaintiff’s attorneys to “run out the clock” and always seek 30 days of penalty wages.

The only problem is one little loophole in the law that fails to require the employee or the employee’s attorney to disclose this 12-day window of opportunity. Senate Bill 279 corrects this issue, requiring a disclosure statement be included in a notice of nonpayment so that both employers and employees are aware of the law, and their rights under the law. SB 279 passed the Oregon Senate on April 12 unanimously – a great win for small business. The bill will now move to the Oregon House for consideration.

With so many contentious issues being discussed in the Legislature each and every day, it’s refreshing to see bi-partisan support for this common-sense legislation.

Let’s hope for more this session,

Anthony K. Smith
Oregon State Director

Related Content: Small Business News | Economy | Oregon

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