New Laws Affecting Oregon & Washington Employers
January, 2010
Employers Must Post Mandatory Meeting Restrictions Poster. Effective January 1, 2010, Oregon employers must notify employees of restrictions on employers holding mandatory meetings in which the employers' opinions on either political or religious issues will be addressed. While there is a recently filed lawsuit that is challenging this statute, for now it is in effect. The new law prohibits retaliation against any employee who refuses to participate in such a meeting, including meetings about unionization. The Oregon Bureau of Labor and Industries will soon have a poster available for employers to post to meet the required notification. In the meantime, the new restrictions are in effect and employers should notify their employees of their rights not to attend such meetings.
Hands-Free Cell Phone Required While Driving. Oregon's new law prohibiting cell phone use while driving (except for hands-free) went into effect January 1, 2010. While there are exceptions to the law for employees who must drive for business, we strongly recommend that employer handbook policies still ban texting and cell phone use while driving. In emergency situations or business necessity, require all calls to be made with a hands-free device. The public has been bombarded with research and other data on distracted drivers. Employers who facilitate or even encourage distracted driving while on company business will face lawsuits for any ensuing injuries.
Employers Must Accommodate Religious Practices and Observances. Effective January 1, 2010, Oregon employers must more extensively accommodate their employees' religious practices. The new law requires employers allow their employees to use vacation time or other leave available to the employee to engage in religious practices or observances. The law also makes it an unlawful employment practice to restrict employees from wearing religious clothing, taking time off for a holy day, or taking time off to engage in a religious observance or practice. There is an exception if the requested accommodations create an undue hardship on the employer. The new law contains one occupation-specific exception: public school teachers are prohibited from wearing religious dress while at work. We recommend employers update handbooks to reflect this law.
Oregon Insurance Division Extends State Continuation. [COBRA Subsidy Extension] On December 21, 2009, President Obama signed legislation extending the amount of time involuntarily terminated employees will receive the 65% subsidy for COBRA continuation coverage. The American Recovery and Reinvestment Act (ARRA) provided for nine months of the 65% subsidy. However, under recently passed legislation, involuntarily terminated employees will receive the subsidy for an additional six months (from nine months to 15 months).
The legislation also extended the deadline for terminated employees to qualify for the COBRA subsidy program. When ARRA was enacted, the subsidy only applied to those who were involuntarily terminated between September 1, 2008 and December 31, 2009. However, with passage of the new legislation, now the subsidy will apply to those who are involuntarily terminated between September 1, 2008 and February 28, 2010.
Similarly, on December 22, 2009 Oregon adopted temporary rules which made the same changes to Oregon's "comparable" continuation coverage. Oregon's state program applies to employers with less than 20 employees whereas federal COBRA applies to employers with 20 or more employees. For state continuation coverage, either the employer or the insurer provides the 65% subsidy and recovers the payment through a credit against their payroll tax liabilities. Plan sponsors (usually the employer) must give notice to their terminated employees who qualify for these benefits and ensure that the payments are made in a timely manner.
Washington's New Domestic Partner Law. Effective December 3, 2009, domestic partnerships registered with the state are now provided essentially the same legal standing as married couples in the state of Washington. Therefore, employers' policies, practices and benefit programs must be the same for married spouses as for registered domestic partners. The law covers state-registered same sex domestic partners and also covers state-registered opposite sex couples where one partner is over the age of 62. Employers who have employees in Washington must review their policies and benefit programs to determine whether any changes are needed to comply with the law. Laws such as the Washington Family Leave Act, the Washington Military Family Leave Act, and the Washington Family Care Act are now extended to include registered domestic partners and employers may need to provide additional insurance and retirement benefits to registered domestic partners.