Oregon’s Salary History Ban, a part of the state’s Equal Pay Act (“Act”), went into effect last October.  However, a majority of the provisions of the Act go into effect as of January 1, 2019.  In anticipation of the upcoming date, the Bureau of Labor and Industries (BOLI) published a final rule (“Final Rule”) to provide guidance regarding some key provisions of the Act.

The Final Rule clarified many terms from the Equal Pay Act, including some specifically from the Salary History Ban:

  • Screening: “using information, however obtained, about a job applicant’s current or past compensation to determine a job applicant’s suitability or eligibility for employment.”
  • Compensation: “includes wages, salary, bonuses, benefits, fringe benefits and equity-based compensation. Compensation does not include tips or reimbursement for any actual costs incurred including, but not limited to, relocation reimbursements, mileage, and out-of-pocket expenses.”

Additionally, the Final Rule gives examples of “work of comparable character,” which may help employers more precisely distinguish pay for differently skilled new hires and employees.  Examples are also given for “allowable pay differences.”  Some of these include seniority, merit system, and work location, among others.

Oregon employers should familiarize themselves with this new rule for additional clarification when it comes to the state’s Salary History Ban.

Full text of the Oregon rule.

For more information on these and other laws and whether they affect your state, visit our resource guide at https://www.hireimage.com/background-check-resource-library/

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