NFIB Helps Defeat Two Anti-Employer Hiring Bills

Date: April 07, 2023

Legislature passes halfway mark of its 2023 Session

State Director Anthony Smith reports from Salem on the small-business agenda for the legislative and political week ending April 7

Friday, April 7, was Day 81 of the 160-day 2023 Oregon Legislative Session, which means we are officially past the half-way point. This week also marked the demise of countless legislative proposals that did not advance out of a policy committee before the Legislature’s first chamber deadline on April 4.

For the next month, we can expect to see much more activity on the House and Senate floors as each chamber works to get through a notably long backlog of bills waiting for a vote – 44 Senate bills are on the Senate’s third reading calendar for Monday, April 10, while 33 House bills are scheduled for a House floor vote the same day. Neither chamber is likely to make a significant dent in those numbers that day, but each chamber will be holding off on committee work in the short term to accommodate extra-long floor sessions.

Committees will reconvene toward the end of next week to start hearing second chamber bills, which must be scheduled for a work session no later than Friday, May 5, and be voted out of committee by Friday, May 19. As noted in previous updates, Rules Committees, Revenue Committees, and Joint Committees are all exempt from these deadlines.

Two NFIB-Opposed Hiring Bills Now Dead

There have been an unusually large number of bills this year containing a private right of action – the right of an aggrieved person to sue for a specific reason laid out in statute, with the target of the lawsuit almost always being a business. Lawsuits clog up Oregon’s already over-burdened court system, enrich and embolden plaintiffs’ lawyers, and drive up the overall cost of doing business in our state, which already has a poor reputation for business friendliness.

NFIB worked non-stop during the first half of session to make sure two of the worst offenders did not advance. Both would have made hiring even harder than it already is right now:

  • HB 2800 (Age-Based Employment Discrimination): NFIB Opposed
    Clarifies meaning of “because of age” in employment discrimination law. Designates as unlawful employment practice for employer to seek age of applicant prior to completing initial interview or making conditional offer of employment and to include certain words or phrases in job application that suggest age preferences. More information here.
  • SB 925 (Pay Disclosure in Job Postings): NFIB Opposed
    Makes unlawful practice for employer or employment agency to advertise job, promotion or transfer opportunity without disclosing pay range and employment benefits in job posting. More information here.

House Approves Two Bills that Risk Insurance Affordability

On March 22, the House Committee on Business and Labor voted to advanced two bad bills out of committee – HB 3242 and HB 3243, both relating to lawsuits against the insurance industry and chief sponsored by Rep. Nathan Sosa (D-Hillsboro). Proponents of these measure will tell you that they simply give individuals the right to hold insurance companies accountable in a court of law, but they ignore the greater consequences on the insurance market – and how those forces impact premiums for nearly all lines of insurance, which is especially important for small businesses.

HB 3242 and HB 3243 came up for a vote on the House floor on April 3 and April 4, respectively. The bills were so contentious that they were read in their entirety. This is happening in the Senate on nearly every bill, but only for particularly controversial bills in the House, so far.

NFIB issued a KEY VOTE Alert on both bills. Here’s an excerpt from our letter:

These bills run the risk of increasing insurance rates at a time when Oregonians and their businesses cannot afford any more cost burdens.

As Oregon businesses face rising costs from inflation and ongoing labor market challenges, we ask legislators to oppose policies that could further negatively impact Oregon’s small businesses. Our members rely on affordable insurance rates to protect their businesses, their employees, and the customers they serve.

These bills would move Oregon’s insurance market away from a proven model that is working for most Oregonians to one that incentivizes litigation. HB 3242 A would authorize the award of triple actual damages and attorneys’ fees, shifting from prompt claims resolution to rewarding lengthy litigation. HB 3243 A would allow lawsuits to be filed against insurers for defending their own policyholders against third party claims.

Both bills would lead to higher litigation costs to resolve claims, which creates market pressure to increase premiums. For many Oregon consumers and businesses, this would mean policyholders will have to pay more for the same coverage – and if they cannot afford to pay more, they risk leaving themselves under-insured.

Unfortunately, both bills ultimately passed and now move on to the upper chamber. They have been referred to the Senate Committee on Judiciary where they have not yet been scheduled to receive a public hearing.

Previous Weekly Reports and Related Information

Photo snip courtesy of the Oregon State Legislature website

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