Proposed Oregon PEO Bill Would Eliminate Co-employment
I recently had the pleasure of delivering a testimony in response to proposed amendments to Oregon House Bill 4005, which would effectively eliminate co-employment practices state-wide. The Chairman of the House Committee on Business and Labor unexpectedly filed this bill, specifically targeting the Professional Employer Organization (“PEO”) industry and the common practice of co-employment. While the entirety of House Bill 4005 and my testimony against it can be found below, the overreaching concern is the following language:
“(3) For all purposes of this chapter, for any hour of work, an employee may not be considered to be employed by more than one employer.” (Full amendment text available here: https://olis.oregonlegislature.gov/liz/2024R1/Downloads/ProposedAmendment/25791)
By doing away with co-employment, a PEO would no longer have the insurable interest in the employee base to have the ability to aggregate and administer group insurance programs.
Please join me in opposition to this bill by submitting public testimony on the Oregon State Legislature website to protect PEO and co-employment practices in Oregon. The link is as follows: https://olis.oregonlegislature.gov/liz/2024R1/Committees/HBL/2024-02-14-08-00/HB4005/WRK/Details
My full testimony opposing the proposed amendments to Oregon House Bill 4005 can be found here
Author: Paul Hughes
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