The Oregon Biz Report - Business News from Oregon

Political twists of the CRC Bridge

Associated Oregon Industries
Oregon’s largest business advocate

The saga of the I-5 Bridge took another twist. It was one of many. In 2013 the Oregon Legislature passed a bill authorizing funding for the span provided that (amongst other things) the State of Washington commit to its share of funding by September 30, 2013. As it happened, the Evergreen State, in political turmoil, did not do so. Thus Oregon’s funding evaporated as September came and went. The bridge seemed dead.

But it wasn’t. The next step was to explore the possibility of Oregon essentially funding both states’ portion of a scaled back version, via tolls, with the federal Government kicking in about one third, tied to light rail. But because of nervousness about Oregon proceeding on such a large project sans its bigger northern sibling, resentment about Washington’s lack of willingness to participate in an interstate project, concerns about the project generally, and increasingly severe cases of bridge fatigue, the votes for an Oregon-lead crossing were not there. The project seemed dead.

Alarm over surprise Oregon business tax bill

Amendments to SB 1534-B may increase taxes on Oregon businesses.  Business owners alarmed.
By Oregon Small Business Association,

There are concerns that technical language in SB 1534-B may have the effect of re-raising rates on out-of-state income earned by small businesses. Republican lawmakers have been the first to voice their opposition to have the language removed from the bill.  The bill, SB 1534, represents a roll-back of last year’s “Grand Bargain” which brought significant tax relief to Oregon Small Business.

Small businesses in Oregon have been on alert throughout the Oregon Special Legislative February Session. Before Session began, State Representative David Gomberg proposed (HB 4067) which would have reduced the small business tax relief to many Oregon small businesses.

Settlement in systemic discrimination case (Genetic Information Act)

By Bullard Law,
Portland law firm
EEOC SETTLES FIRST SYSTEMIC DISCRIMINATION CASE FILED UNDER THE GENETIC INFORMATION ACT

Last week the Equal Employment Opportunity Commission (EEOC) announced a settlement and consent decree in the first lawsuit filed by the agency alleging systemic discrimination in violation of Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA). The settlement and press release suggest that the EEOC intends to more vigorously enforce the GINA. This Alert will provide a brief GINA overview, will review the EEOC’s allegations and settlement details, and will outline several practical considerations.

GINA Overview

Title II of the GINA applies to employers with 15 or more employees and limits their ability to request or use genetic information. Among other things, a covered employer (1) may not request that an applicant or employee provide genetic information, (2) is strictly prohibited from using genetic information in making employment decisions, (3) must treat any genetic information it does possess as confidential and (4) may not disclose genetic information except in a few specifically enumerated circumstances.

Ad knocks sports arenas with health insurance names

By Oregon Small Business Association

This weekend Health Republic Insurance put out a giant near-half page ad in The Oregonian stating that “You’ll never see our name on an arena.  But we’re fine with that.”   The hint is likely towards the recent renaming of the Timber’s Soccer field as Providence (Health) Park and the 2013 renaming of the Rose Garden as the Moda (health) Center.   The ad focuses on Health Republic’s using its money towards service, customer care and not towards profits.   The ad represents an interesting spin on the high profile success stories of Providence Health and Moda which have reaped huge rewards, name recognition, fan appreciation and media attention for their Oregon sports arena sponsorships.  You can see the ad below and judge the marketing move and advertising decisions by these Health Insurance companies.

(Note: the ad bottom was not featured due to size.  It repeated its website and gave a phone number)

2014 Legislature: Last stand for business bills

Associated Oregon Industries
Oregon’s largest business advocateFebruary 25 was the last major deadline of the 2014 Legislative Session before the Constitutionally-mandated adjournment date of March 9. Bills must now be voted out of their final committee, or else they are considered dead. Tuesday’s deadline weeded out a new round of bills.

Now is when things get tricky. The Rules Committees, Revenue Committees, and Ways & Means are all “live” committees. Look for dead bills, or even brand new concepts, to find themselves resurrected and amended into bills that are still alive in these committees.

Here is the latest on the 2014 AOI Agenda to-date:

Senate expands e-commerce zones

Multiplying e -commerce zones will accelerate Oregon’s job growth HB 4005 A allows more parts of the state to designate ‘e-commerce zones’ to spur investment
By Oregon Senate Democrat Office

The Oregon Senate authorized an expansion of Oregon’s successful ‘e-commerce’ zone program, which helps secure investments and jobs across the state. House Bill 4005 A, which passed on a vote of 28 -2, raises the cap on the number of e -commerce zones from ten to fifteen.

“Innovative technology companies provide fuel for Oregon’s growing economy, and we ought to encourage more of them bring their business here,” said Senator Alan Bates (D-Medford). “ Last session, I worked with my colleagues to create an e-commerce zone in my district. With this bill, we’re giving more communities like mine the means to attract family-wage jobs and put people to work.”

2013 Oregon added 37,300 jobs – best since 2006

By Josh Lehner
Oregon Office of Economic Analysis Blog

Oregon finally saw some real job growth in 2013. The state’s economy was strong enough to add 37,300 jobs over the year through November. That’s above average for a growth year and the largest November to November jobs gain since 2006. In fact, more jobs were created in 2013 than in 2011 and 2012 combined!

The addition of 37,300 jobs from November 2012 to November 2013 represents a growth rate of 2.3 percent. Job growth in 2013 was faster than the average rate for growth years since 2000, which is 1.7 percent. Oregon’s job growth in 2013 ranked as the fourth-fastest year of growth since 2000, but it was not enough to fill in the deep hole dug by the recession (Graph 1). That will require an additional 53,900 jobs.

Despite the job growth, the high number of unemployed Oregonians keeps downward pressure on worker earnings. The average hourly wage in 2013 was about $22.50 per hour. After adjusting for inflation, the average worker in Oregon is earning less than before or during the recession.

Phil Knight: Nation’s 3rd biggest giver

Phil Knight Third Most Generous Donor of 2013
By Oregon Small Business Association

Phil Knight, co-founder and chairman of Nike, has been named as the #3 most giving person in 2013 according to the Chronicle of Philanthropy. Last Spring, Constance French, senior vice president of Oregon Health & Science University Foundation and Brian Druker, director of OHSU’s Knight Cancer Center approached Knight with a donation request of $500-million for a 20-year project to expand research and early detection of deadly cancers. Knight suggested shortening the time to 10 years, but continued to consider the proposal. At a September OHSU event, Knight announced he and his wife, Penelope would give $500-million with the stipulation that the university secure a matching amount from additional donors in two years.

Court ruling: Workers changing clothes compensation case

By Bullard Law,
Portland law firm

SUPREME COURT UP HOLDS CBA PROVISION THAT TIME SPENT CHANGING CLOTHES IS NOT COMPENSABLE UNDER THE FLSA ’S COLLECTIVE BARGAINING EXCEPTION

On January 27, 2014, a unanimous United States Supreme Court held that employers and unions may agree that time workers spend putting on and taking off clothing, including protective clothing, is unpaid without violating the Fair Labor Standards Act (FLSA). In Sandifer v. United States Steel Corporation, a group of employees at U.S. Steel’s Gary, Indiana plant sued their employer seeking backpay under the FLSA for the time they spent donning and doffing protective clothing and gear.

While the FLSA normally requires that employers pay employees for time spent donning and doffing clothing required for the job, the definition of “hours worked” allows “any time spent in changing clothes or washing at the beginning or end of each workday” to be excluded as non-compensable under the terms of a collective bargaining agreement. See 29 USC §203(o). US Steel defended itself by arguing that the complaining employees worked under a CBA that specifically excluded time spent “changing clothes” from compensable work time.