Sick leave, retirement plan measures could face tough fights

Published 12:00 am Friday, June 12, 2015

SALEM — Majority Democrats in the Legislature have advanced requirements for businesses to provide paid sick leave and offer state-sponsored retirement savings plans to workers.

The Senate passed the sick-leave requirement on a 17-13 vote Wednesday and moved Senate Bill 454 to the House. The House passed the retirement-savings option on a 32-26 vote Wednesday and moved House Bill 2960 to the Senate.

Both bills are expected to come up for votes in the other chamber soon.

Sen. Betsy Johnson of Scappoose was the sole Democrat to join the 12 Republicans in opposition to SB 454.

Reps. David Gomberg of Otis and Caddy McKeown of Coos Bay were the Democrats who joined 24 Republicans in opposition to HB 2960. One Democrat and one Republican were excused.

The bills passed after debates of more than an hour in the Senate and 90 minutes in the House.

Retirement savings

“Far too many Americans and Oregonians are not saving enough for retirement,” said Rep. Tobias Read, D-Beaverton, one of the chief sponsors of HB 2960. “We can make it easier for Oregonians to do what is in their own best interests.”

A task force led by state Treasurer Ted Wheeler advanced the retirement-savings bill, which would make Oregon the third state to pass such legislation, after California and Illinois.

After the vote, Wheeler said in a statement: “Far from being a burden on small businesses, the retirement security bill provides an attractive option to small business owners who would like to offer their employees a retirement plan, but cannot because of cost and administrative hassle.”

While businesses would be required to make a state-sponsored savings plan available in 2017, HB 2960 would not compel them to contribute to a plan, and workers could opt out of participating. A state board created in the Oregon State Treasury would develop a plan that is similar to an individual retirement account, and would be run by a contractor must like the existing 529 Oregon College Savings Plan.

But Rep. Carl Wilson, R-Grants Pass, said workers already can choose from a variety of plans already available in the market.

“We are putting together a great statewide mechanism for something that few people will take advantage of,” he said.

The task force found, however, that half of Oregon’s private-sector workers lack access to a savings plan at work — and that participation is likely to jump if one becomes available.

Sick leave

In the Senate, Democrats turned aside Republican attempts to apply the sick-leave requirement only to businesses with 25 or more workers, to require paid leave only for victims of crime and domestic violence, and to exempt agricultural workers.

“What I see is another polarizing issue,” said Sen. Chuck Thomsen, R-Hood River, an orchardist who moved unsuccessfully for the agricultural exemption.

SB 454 would allow workers to accrue leave at one hour for every 30 hours worked, or one and a third hours for every 40 hours worked, up to a maximum of 40 hours per year. Employers could set a maximum of 80 hours accrual, and limit use to 40 hours each year.

The bill applies to businesses with at least 10 workers. Part-time workers would accrue leave at the same rate.

“Working people shouldn’t be forced to choose between their jobs and their health,” said Senate Majority Leader Diane Rosenbaum, D-Portland.

Oregon would become the fourth state to provide for such a requirement, after Connecticut, California and Massachusetts. If Senate Bill 454 passes the House and is signed by Gov. Kate Brown, it would take effect Jan. 1, although penalties for violations could not be levied until January 2017.

Portland already has a sick-leave requirement for businesses with six or more employees. The bill would allow Portland to retain that standard, which the city council put into effect in January 2014, but also nullify a Eugene ordinance that would apply the requirement to all businesses regardless of size.

pwong@PamplinMedia.com

@capitolwong