Oregon House passes bill to give overtime pay to farmworkers; heads to Senate next

SALEM, Ore. (AP) — A bill that would give overtime protections to Oregon farmworkers passed the House 37-23 Tuesday and will head next to the Senate for consideration.

Proponents say House Bill 4002 would provide equal protection for farmworkers who haven’t been able to earn overtime because of an 80-year-old federal exclusion based in racism. Opponents say it would be financially crippling for small family farms and will force them to cap shifts at 40 hours per week rather than pay overtime, which ultimately will mean less money for farmworkers.

Under the bill, overtime would be phased in over five years. Farm owners would be required to pay workers time-and-a-half for any hours worked past 55 hours a week in 2023 and 2024, past 48 hours a week in 2025 and 2026, and past 40 hours a week from 2027 onwards, the Statesman Journal reported.

It also establishes a refundable tax credit in place through 2029 for farm owners to offset portions of their overtime costs during the transition period.

“While Oregonians today do not bear responsibility for the decisions of our predecessors, we are responsible for correcting historic wrongs,” bill sponsor Rep. Andrea Salinas, D-Lake Oswego, said. “Excluding farmworkers from overtime was wrong in 1938, it was wrong in 1950 and it is still wrong today.”

Opponents said farm owners could mechanize or sell to large corporations if they couldn’t compete under the bill, permanently altering the landscape and culture of Oregon’s agricultural industry.

“For some, House Bill 4002 will be the breaking point,” Rep. Daniel Bonham, R-The Dalles, said.

The inclusion of refundable tax credits is one of the primary outcomes of attempts at compromise between industry and labor during interim work groups and during the 2022 legislative session. Farm owners wanted a higher overtime threshold during peak season — as high as 55 hours per week — which bill proponents said would undermine the bill’s purpose.

California and Washington are among seven states that currently offer some form of overtime pay to farmworkers, The Oregonian/OregonLive reported.

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News release from Oregon House Democrats:

In Historic Moment, House Democrats Pass Farmworker Overtime After 80 years of exclusion, House Bill 4002 B will ensure Oregon farmworkers receive overtime pay

SALEM, Ore. - Today, Oregon House Democrats passed House Bill 4002 B, which will ensure that farmworkers receive overtime pay, following eight decades of being excluded from these basic workplace protections.  Long hours without fair pay or access to affordable health care, coupled with unsafe working conditions, including pesticides and extreme weather, have led to shorter life expectancy for farmworkers and worse health outcomes for their families. The average life expectancy of a farmworker is just 49-years.    “This is about fair pay and equal treatment under the law,” said Representative Andrea Salinas (D-Lake Oswego), a chief sponsor of the bill. “Oregon’s farmworkers are essential. Throughout the pandemic, wildfires, and heatwave this summer, they have put their safety and health on the line to make sure our families are fed and we have food in stores. I’m proud that we showed up for them today.”  This marks a historic moment for farmworkers, who were originally excluded from the Fair Labor Standards Act of 1938, a landmark policy that introduced overtime pay, banned child labor, and established the minimum wage. Farmworkers at the time were predominantly Black. Today, 77% of farmworkers in Oregon are Latino.  “My parents are farmworkers right here in Oregon, and have been underpaid and overworked for over 40 years,” said Representative Teresa Alonso Leon (D-Woodburn), whose family came to the U.S. from San Jerónimo Purenchécuaro, Michoacán. “This bill is about dignity for these working families. Today, my parents and farmworkers across the state finally feel seen and acknowledged for their contributions.” The bill’s passage follows three years of extensive conversations with Oregon’s farmers, farmworkers, and advocates.  “After many years of discussion and compromise, we have a solution that will grant farmworkers the protections they have long been denied, and give farmers the support they need through this transition period,” said Representative Paul Holvey (D-Eugene), chief sponsor of the bill.  The bill will phase in overtime pay to give farmers time to adjust, establishing the maximum hours employers may require of agricultural workers before paying time-and-a-half for additional hours. It specifies maximum hours worked as:55 hours per work week in 2023 and 2024;48 hours per work week in 2025 and 2026; and40 hours per work week in 2027 and beyond. Eligible farms will also receive economic support through refundable personal and corporate income tax credit to help offset the added costs of paying overtime wages and is structured to support smaller farms. Oregon joins seven states who have already adopted maximum hour and overtime requirements for farmworkers, including California, Washington, and New York.  The bill passed 37-23 and now heads to the Senate for consideration.

News release from Oregon House Republican Caucus:

Rep. Salinas and Rep. Holvey spearhead Democrats’ agriculture overtime bill, likely cutting hours and pay for farm workers

SALEM, Ore. – Today the Oregon House passed a union-backed agriculture overtime bill championed by Representative Andrea Salinas (D-Lake Oswego) and Representative Paul Holvey (D-Eugene) that will result in job losses and pay cuts for farm workers.

HB 4002 B was rushed through during the 35-day short session and passed the House today on party lines. The vote followed a motion from House Republicans to send the bill back to committee. This attempt narrowly failed initially 27 – 32, with bipartisan opposition to this flawed bill and support for a true Oregon solution.

House Democrats, led by the Representatives from Lake Oswego suburbs and Eugene, were emboldened by the threat of an overtime rule from the Oregon Bureau of Labor & Industries if legislation failed this session. The majority turned down every alternative proposal from Republicans, including an amendment to guarantee increased pay to farm workers for extra hours worked with a $50 million grant. The Democrats’ bill instead includes tax breaks for large, out-of-state corporate farms.

“This legislation is a loss for Oregon,” said House Republican Leader Vikki Breese-Iverson (R-Prineville). “We had an opportunity to find an Oregon solution that caters to our state’s diverse agriculture industry, protecting both farm employees and farm owners. Instead the majority’s failed leadership passed a bill that will cut employee hours and wages while expediting the automation of farm work.”

“Legislators from both sides of the aisle have stated on the record: this proposal will result in job losses for farm workers,” added Representative Daniel Bonham (R-The Dalles). “There is no appropriate justification for taking jobs away from Oregonians trying to put food on their families’ tables.”

“There is no doubt we will need to fix this legislation in 2023 to save farm employee jobs,” said Representative Shelly Boshart Davis (R-Albany). “First we will need more balance in the Legislature and a majority that stands up to partisan special interests. We must put people above politics.”