Important Business Law Updates for 2023 in WA, OR & CA

Blog by Attorney Michael Jonas

Oregon

✤ New Paid Family and Medical Leave Program Rolls Out: This program has been in the works for a few years. Approved in 2019, it was delayed by COVID. Starting this January, the program called “Paid Leave Oregon” will provide 12 weeks of paid time off (starting in September) to workers who have given birth, are experiencing a crisis, are seriously ill, and other set forth reasons. What’s the skinny–all employees will pay into the fund. Employers with 25 or more will also pay into the fund. For more information and specific details here: https://www.opb.org/article/2022/12/08/oregon-workers-and-employers-will-soon-pay-into-states-new-paid-leave-program/

✤ New Agriculture Overtime Pay Requirements: House Bill 4002 requires employers to pay time and a half to agricultural workers. Did you know passed and certified bills are called “enrolled?” Here’s the enrolled bill: https://olis.oregonlegislature.gov/liz/2022R1/Downloads/MeasureDocument/HB4002

In summary though, starting January 1, 2023, employers must pay overtime to agricultural workers for hours worked beyond 55 hours in a workweek. Starting January 1, 2025, employers must pay overtime to agricultural workers for hours worked beyond 48 hours in a workweek. Starting January 1, 2027, employers must pay overtime to agricultural workers for hours worked beyond 40 hours in a workweek.

✤ Expansion of Oregon’s Workplace Fairness Act: Senate Bill 1586 expands Oregon’s Workplace Fairness Act to make it unlawful for an employer to require former employees to enter into an agreement that would prevent them from disclosing discrimination and harassment. The previous law already covered current and prospective employees but not former employees. 

✤ Broadening of Definition of “Beneficiary and Dependent” for Workers Compensation Payments: Under the new law, the definition of “beneficiary” and “dependant” has been broadened to include individuals whose close association with the worker receiving benefits is equivalent to a family relationship. Dependents who are noncitizens living outside the United States and spouses “living in a state of abandonment” are also no longer excluded from being beneficiaries, either. 

✤ Businesses Paid for Economic Damages for Burglary Before Criminals Pay Court Fines: In the past, crime victims had to sometimes wait for criminals to pay court fines and fees first. Now, small businesses who were burglarized can seek restitution for economic damages and get paid prior to the criminal paying other items. 

✤ Minimum Wage Increase: Oregon’s minimum wage of $13.50 will go up to $14.75 on July 1, 2023. In 2016, a law was passed dividing Oregon into three regions which get different rate increases. “The minimum wage in portions of the three counties classified as the metropolitan Portland urban growth area will increase from $14.00 to $14.75. The minimum wage will increase in the 15 counties classified as standard from $12.75 to $13.50. The minimum wage will increase in the 18 counties classified as nonurban from $12.00 to $12.50.” https://ballotpedia.org/Minimum_wage_increases_in_2023

Washington

✤ Pay Transparency Law:  Starting January 1, 2023, employers in WA with at least 15 employees must disclose in each job posting the wage scale or salary range and a general description of all benefits and other compensation being offered when posting job openings, regardless of whether such information is requested by the applicant. This applies to both internal and external job postings. 

✤ Alcohol-To-Go Set to Expire July 1, 2023 Unless Renewed: The variance that allowed businesses to serve alcohol for pick up or delivery vs. just consuming onsite is set to expire on July 1st unless it is renewed. 

✤ Minimum Wage Increase: Washington’s previous minimum wage was $14.49. In 2023, it will increase to $15.74. Some cities meet this minimum but also set their own higher minimum-some depending on employer size. For example, in Seattle the minimum wage for 2023 will be between $16.50 and $18.69. According to this source KUOW - Seattle minimum wage will rise in 2023, “The new $16.50 rate is for small employers who pay medical benefits or allow tips for employees. This is a 75 cent raise from the current $15.75 per hour rate. The minimum for small employers who don't pay for insurance, and for all large employers, is $18.69 per hour. This is a $1.42 raise from the current $17.27 rate…The city defines a small employer as a business with fewer than 500 employees.”

✤ WA Cares Program is delayed until July 2023: WA Cares is a long-term care trust program approved by the state legislature  in 2019. Washington-based employees will be taxed up to $0.58 per $100 in earnings, and then may be eligible for certain long-term care benefits. Employers in WA do not pay into the fund, although they are required to collect and remit WA Cares taxes to the state (once the program resumes). 

California

✤ Pay Transparency Law: California employers will require businesses who have 15 or more employees to to include information about salary ranges for all job postings whether internal or external. Companies with 100 or more employees are required to submit pay data and wage history to the state by May of each year or face penalties.

✤ Bereavement Leave: AB 1949 allows workers to take up to five days of bereavement leave for the death of a close family member, such as a spouse, domestic partner, parent, parent-in-law, child, sibling, grandparent or grandchild. The leave may be unpaid at companies without a bereavement policy or workers may use available sick time if company policy only allows for up to three days of bereavement leave.

✤ Family Care: AB 1041 allows employees to take family care or medical leave for an expanded group of individuals. An employee can now take leave for a "designated" person who is either related by blood or whose association with the employee is equivalent to a family relationship.

✤ Farmworker Unionization: AB 2183 makes it easier for farmworkers to unionize by allowing them to vote by mail in an election for collective bargaining representation. Currently, the vote may only take place in person.

✤ State of Emergency: SB 1044 prohibits an employer, in an event of an emergency, from retaliating or disciplining an employee who refuses to report to work or leaves a workplace because they have a reasonable belief that the work area is unsafe. Employers are prohibited from taking a worker's mobile device or preventing them from seeking help. The law defines an emergency as a natural disaster or criminal act. A health pandemic is not listed as an eligible emergency.

✤ COVID-19 Employer Notification Rules: AB 2683 extends an existing law until 2024 requiring employers to notify workers of a COVID-19 infection in the workplace. The law also repeals a provision that requires the employer to notify the local public health department of a COVID-19 outbreak.

✤ Fur Clothing: In 2019, California became the first state to ban the sale of new animal fur products in the state. Implementation of that law was delayed until 2023 to give retailers time to sell off their inventory. The ban does not apply to leather, cowhide or shearling products. The ban does not apply to used fur clothing.

✤ Consumer Privacy: Proposition 24, the California Privacy Rights Act (CPRA) approved in 2020, gave consumers the right to know, delete or opt-out of the sale of their personal information. New provisions take effect in 2023 that allow consumers and employees to ask businesses to disclose the personal information they have collected on them and ask them to delete or correct that information. Employees may also ask a company not to sell or share their personal information and have the right to know what personal information their employer is selling or sharing about them and with whom. Consumers and employees can also direct businesses to limit the use of sensitive personal information, such as social security numbers, financial account information, geolocation data or genetic data.

✤ Retail Theft: AB 2294 allows police to keep in custody individuals convicted of theft from a store in the past six months if they are suspected of organized retail theft. Previously, an individual detained for retail theft was given a written notice or citation and released. The law also establishes recidivism programs to prevent repeat offenders.

✤ Stolen Goods: AB 1700 requires the state attorney general to establish a website for people to report items they suspect are stolen and being sold on the internet. A companion bill (SB 301) that requires online marketplaces to obtain personal and financial information from high volume sellers takes effect in July.

✤ Human Trafficking Storefront Signage: AB 1661 requires hair salons, nail salons and other barbering and cosmetology businesses to post signs containing information about slavery and human trafficking. The signs must include phone numbers where to report such crimes.

✤ Food Packaging: AB 1200 bans the use of food packaging, such as take-out boxes and food wrappers, made from plant fibers that contain PFAS that were intentionally added or are present at levels above 100 parts per million. PFAS are hazardous chemicals added to food packaging to make them more water or stain resistant.

✤ Street Vendor Permitting Processes: SB 972 makes it easier for mobile street vendors who often sell fresh fruit, tacos or hot dogs, to obtain permits and meet health requirements. The law reduces the cost of permit fees and changes health requirements which often times were similar to brick-and-mortar restaurants or food trucks.

Note: This is not an exhaustive list. These law, policy, and regulation updates were curated for this blog as they seemed most relevant to small businesses and nonprofits. It’s always good to consult with a lawyer about these matters. Our firm can help clients with business law services in all three states mentioned in this blog: WA, OR, and CA. We can help clients with nonprofit and intellectual property law services all over America. Please contact us here: www.rationalunicorn.com/contact