Oregon’s new pay history inquiry ban becomes effective on October 6, 2017. This new prohibition, which is part of Oregon’s Equal Pay Act of 2017, restricts employers from obtaining or using pay history of applicants and employees until after making a job offer that includes compensation. This prohibition will radically change the way most Oregon employers recruit and hire. Below are Lane Powell’s best practices for avoiding pay discrimination claims:
The Oregon law contains a limited exception: Once the employer makes a job offer that includes compensation, the employer may confirm pay history if the applicant provides written authorization.
Potential Exposure for Noncompliance. Employees do not have a private right of action for violations of the pay history inquiry ban until January 1, 2024. In addition, the Oregon Bureau of Labor and Industries (BOLI) has stated that it will not enforce this provision until January 1, 2019. Nevertheless, an employer’s noncompliance with the pay history inquiry ban can be used as evidence to prove alleged pay discrimination in a subsequently filed claim. Accordingly, employers should act now to immediately comply with the Oregon pay history ban.
Lane Powell will discuss the Oregon Equal Pay Act of 2017 and other pay equity trends at its upcoming Labor and Employment Seminar in Seattle on Tuesday, October 17, where our attorneys will be available to answer any questions. Employers should contact their counsel to discuss how this ban will impact their business.
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