Oregon House Bill HB3553

Oregon 2023 Regular Session

• Introduced: 2/28/23
• Refer: 3/3/23
• Failed: 6/25/23

Caption

Relating to compensation for accrued leave upon termination of employment.

Impact

If enacted, HB3553 will amend existing Oregon statutes ORS 652.140 and ORS 653.606 to enforce that all employers must compensate terminated employees for any unused leave they have earned. This change will require employers to evaluate and potentially adjust their compensation policies to comply with the new regulations. The bill explicitly states that compensation for leave must be paid at the employee's regular rate of pay, which could have a significant financial implication for businesses, particularly smaller employers who may find it more challenging to absorb these costs.

Summary

House Bill 3553, introduced by Representative Nelson, mandates that employers provide compensation for all earned but unused sick leave, vacation leave, and personal business leave to employees upon termination of their employment. This bill aims to ensure that workers receive financial compensation for their accrued leave benefits, which can significantly impact their financial stability during periods of unemployment. By standardizing the approach to accrued leave compensation, the bill seeks to provide clear guidelines and protections for employees, thereby promoting fairness in employment practices across Oregon.

Sentiment

The sentiment surrounding HB3553 appears to be generally supportive among labor advocates and employee rights groups, who view the bill as a necessary step towards protecting workers' rights. However, there are concerns from some employer groups about the financial burden this may impose, particularly on small businesses. This leads to a divided sentiment, where proponents highlight the importance of employee rights and financial security, while opponents raise questions about the economic impact and practicality of enforced compliance.

Contention

Notable points of contention around HB3553 include the potential economic impact on businesses, especially smaller ones, who may struggle to provide compensation for unused leave without increasing costs. Critics argue that the bill could lead to unintended consequences, such as reduced hiring or cutbacks in employee benefits to offset the financial impacts of the mandated compensation. While the intent of the bill is to enhance employee rights, the discussions reflect a broader debate over balancing employee protections with business viability in the state.