REPRESENTING BUSINESS ISSUES
Oregon Legislative Update: New Laws and Potential Tax Hikes Could Reshape Business Environment
A s of July 1st, 2024, several new laws in Oregon will take effect, potentially changing the landscape for businesses operating within the state. The most prominent changes include a new consumer data privacy policy and adjustments to the Oregon Family Leave Act, which could significantly impact both small and large businesses in the state. Data Privacy Law: Increased Responsibility for Businesses Oregon Senate Bill 619 introduces stricter consumer data privacy regulations, granting residents more control over how their personal data is collected, stored, and used. Businesses must now provide more transparency regarding their data practices and comply with new opt-out options for targeted advertising. Additionally, consumers can request a copy of their data, demand corrections to inaccuracies, or ask for data deletion. These changes only apply to companies that process the personal data of at least 100,000 individuals per year or generate at least 25% of their revenue from selling data, creating a new compliance challenge for large corporations operating in the state. While these requirements aim to protect consumer rights, they may also pose financial and operational burdens for businesses not yet equipped with robust data management and privacy infrastructure. Family Leave Changes: Addressing Overlaps in Leave Programs Another significant update is the modification to the Oregon Family Leave Act (OFLA). This change is intended to reduce confusion and potential abuse of overlapping leave benefits now that Paid Leave Oregon is in full effect. Paid Leave Oregon, which launched in 2023, guarantees up to 12 weeks of paid leave for major life events such as the birth of a child or a serious health condition. Previously, employees could “stack” leave benefits by drawing from both OFLA and Paid Leave Oregon for the same event, potentially doubling their time off.
The new law, Senate Bill 1515, clarifies that employees cannot use both programs simultaneously for a single qualifying event, reducing the risk of lengthy employee absences that could disrupt business operations. This update aims to balance employee rights and business needs, but it still allows for up to 24 weeks of leave in specific cases where separate qualifying events occur in the same year(KGW). Corporate Tax Increase on the Horizon In addition to these legislative changes, businesses in Oregon are facing a potential tax increase that could have a broader economic impact. Initiative #17, which has been approved for the November 2024 ballot, proposes an
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The Business Review | June & July 2024
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