Labor Legislative Alert – What is SB 916 and Why Should You Care?

Labor Legislative Alert

What is SB 916 and Why Should You Care?

By Diana Moffat

As of the writing of this newsletter alert, the Oregon legislature is still actively considering various legislative amendments and some new implementations that will directly impact your labor relations matters.

The biggest concern for our public sector employers, as it relates to labor negotiations, is SB 916. This bill has gone through a few changes, but is now pending House review on the version A-engrossed draft.

This Oregon Bill would give public sector employees, who are out on strike during a strike over benefits and wages, the ability to apply for and receive unemployment insurance benefits for a portion of their time while out on strike and away from work.

Senate Bill 916 passed by the bare minimum of 16 votes in the 30-member Senate chamber, with two Democrats voicing concerns that the legislation could harm cash-strapped cities and counties. That concern comes from the fact that many Oregon cities and counties are “direct pay” to the Employment Department for any approved unemployment benefits paid out by the Employment Department. This has been characterized as nothing less than a direct tax payer subsidy for striking workers.

Under the current law, rules and regulations (mostly under PECBA – ORS 243.650, et seq.) if a public sector strike-permitted group of employees goes out on strike, they are not eligible for unemployment compensation benefits. SB 916 would change that provision.