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New Oregon Employment Laws Passed in the 2011 Legislative Session

As you prepare to ring in the new year, one of your resolutions should be to update your company’s employment policies. During the 2011 legislative session, Oregon legislators passed several labor and employment related laws. Employers should take note of the following bills – all effective January 1, 2012 – and update their policies and procedures accordingly. Below is a summary of the key changes. The entire text for each bill can be found at http://www.leg.state.or.us/.

Oregon Employers Breathe Sigh of Relief: 2011 Legislative Session Concludes On Positive Note

Employers in Oregon – you have cause to celebrate, or at least breathe a sigh of relief. The Oregon state legislature recently wrapped up its 2011 session without passing any major pieces of legislation that could be considered harmful to employers. Although there are a few new statutes that will soon go into effect that may slightly alter the way you do business, the impact of these new laws are minimal. In fact, a few new laws were passed that are actually beneficial to employers.

Oregon Shortens Notice Period, Imposes New Requirements on Employment-Related Binding Arbitration

Since January 1, 2008, Oregon employers electing to use binding arbitration agreements with new employees have been required to give two weeks’ written notice of the arbitration requirement before hiring a new employee. For current employees, employers have been required to obtain an employee’s signature at the time of a “subsequent bona fide advancement.”

Oregon Affirms Commitment to Franchisee as Employee Ruling

The Oregon Court of Appeals recently affirmed its 2009 interpretation of Oregons unemployment insurance act to cast franchisees of cleaning services as employees, rather than franchisees and independent contractors, of the franchisor.

Oregons Job Applicant Fairness Act Update - BOLI Issues Final Rules.

The Oregon Bureau of Labor and Industries (BOLI) issued final rules to implement restrictions on an employer's use of information contained in an applicant's or an employee's credit history. BOLI's final rules effectuate Oregon's new law, "The Job Applicant Fairness Act," which will go into effect July 1, 2010.

The Smoke Has Cleared Oregon Supreme Court Finds Medical Marijuana Use at Work Not Protected.

Oregon employers' long wait for a definitive answer regarding whether they have to accommodate employees' medical marijuana use in the workplace has come to an end. On April 15, 2010, the Oregon Supreme Court ruled that Oregon employers have no duty to accommodate medical marijuana use in the workplace, and thus may take adverse employment action against employees who are currently using medical marijuana without fear of running afoul of Oregons disability discrimination laws.

Oregon Employers Have No Duty to Accommodate Medical Marijuana.

Finally resolving what had been an open question under Oregon law, Oregon's Supreme Court has ruled that Oregon law does not require employers to accommodate the use of illegal drugs, including medical marijuana that is otherwise allowed under state law. The Court, in Emerald Steel Fabricators, Inc. v. Bureau of Labor and Industries, reversed a state administrative ruling that an employer violated Oregon disability laws when it terminated an employee who disclosed he was using marijuana for medicinal reasons.

Oregon Employers Claim Victory In Medical Marijuana Battle.

On April 15, 2010 the Oregon Supreme Court handed employers a comprehensive victory in the long-running medical marijuana battle, deciding that employers need not accommodate an employee's use of medical marijuana. The decision now means that employers can rest comfortably knowing they can consistently enforce their zero tolerance drug policies without regard to medical marijuana registry status. Emerald Steel Fabricators, Inc. v. Bureau of Labor and Industries.

New Oregon Credit Check Law Warrants Nationwide Review of Employer Practices.

Oregon employers ability to conduct credit checks and use the information for employment purposes will be significantly restricted beginning July 1, 2010, but the implications of this law extend well beyond state borders. With limited exceptions, Oregon Senate Bill 1045 prohibits employers from considering for employment purposes any information that bears on a consumers creditworthiness, credit standing or credit capacity, unless such information is substantially related to the individuals current or potential job. Employers who believe credit information meets this job-related standard must provide the employee or applicant the reasons for their determination in writing.

New Oregon Law Prohibits Most Employment Credit Checks.

Most Oregon employers who review job applicants' credit history reports before deciding whether to hire them will no longer be able to do so as of July 1, 2010. Billed as a means to help out-of-work Oregonians find jobs more easily, the Oregon legislature passed a new law on February 22 which will greatly restrict your ability to perform credit checks on applicants and employees. Once signed into law by the Governor (which is expected), Oregon will become the third state in the country joining Washington and Hawaii to prohibit this common practice.
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Ford & Harrison LLP | New York | New York's Wage Theft Prevention Act Requires Notice to Employees (January 30, 2012)

Ford & Harrison LLP | California | Class-Action Antitrust Complaint Alleging an Unlawful Employer "No-Poaching" Conspiracy Appears to Have Survived a Motion to Dismiss (January 30, 2012)

Young Conaway Stargatt & Taylor, LLP | Delaware | Delaware Court of Chancery Issues Guidelines for Attorneys (January 31, 2012)

Littler Mendelson, P.C. | Pennsylvania | Pennsylvania Court Holds That Trustees May File Mechanics’ Lien to Obtain Delinquent Contributions to Health and Pension Funds (January 30, 2012)