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OregonHB 22362025 Regular SessionHouseWALLET

Relating to employment; and prescribing an effective date.

Sponsored By: Shelly Boshart Davis (Republican)

Became Law

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 0 costs, 4 mixed.

PEO unemployment reporting choice and timing

If your business uses a PEO, the PEO must pick who reports unemployment payroll: the PEO or the client. This choice only applies to unemployment payroll tax reporting, not other laws. If the PEO chooses client reporting, it must give requested documents within 60 days, or default to PEO reporting. A change takes effect the year after notice and is locked for two full calendar years. Elections made in the first 120 days after the law starts take effect that quarter and do not count toward the two‑year lock; this early rule ends January 2, 2027.

Who pays unemployment costs in PEOs

If wages are reported as PEO wages, the PEO’s account is charged for benefits. If wages are reported as client wages, that client’s account is charged. When either a PEO or a client pays a worker in a year, both must count that pay toward the taxable wage base. This can shift who pays for claims and can raise employer unemployment tax costs.

Defines PEO roles for unemployment

The law defines what a PEO relationship is in Oregon unemployment law. It says who counts as a PEO, a client employer, and a covered employee, and who is not a PEO. It fixes the federal tax code date to December 31, 2023, and says contributions are payments to the Unemployment Compensation Trust Fund. These definitions decide which rules apply to your business and wages.

When these PEO rules start

The law takes effect on the 91st day after the 2025 Oregon legislative session adjourns. That date starts all the rules in this act.

Sponsors & Cosponsors

Sponsor

  • Shelly Boshart Davis

    Republican • House

Cosponsors

  • David Brock Smith

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 146 • No: 0

House vote • 5/29/2025

House concurred in Senate amendments and repassed bill.

Yes: 51 • No: 0

Senate vote • 5/27/2025

Third reading. Carried by Bonham. Passed.

Yes: 30 • No: 0

Senate vote • 5/8/2025

Labor and Business: Heard and Reported Out with Amendments

Yes: 5 • No: 0

House vote • 4/22/2025

Third reading. Carried by Boshart Davis. Passed.

Yes: 53 • No: 0

House vote • 4/9/2025

HLWS: Heard and Reported Out with Amendments

Yes: 7 • No: 0

Actions Timeline

  1. Chapter 280, (2025 Laws): effective on the 91st day following adjournment sine die.

    6/23/2025House

  2. Governor signed.

    6/9/2025House

  3. President signed.

    6/2/2025Senate

  4. Speaker signed.

    6/2/2025House

  5. House concurred in Senate amendments and repassed bill.

    5/29/2025House

  6. Third reading. Carried by Bonham. Passed.

    5/27/2025Senate

  7. Carried over to 05-27 by unanimous consent.

    5/23/2025Senate

  8. Carried over to 05-23 by unanimous consent.

    5/22/2025Senate

  9. Carried over to 05-22 by unanimous consent.

    5/21/2025Senate

  10. Carried over to 05-21 by unanimous consent.

    5/20/2025Senate

  11. Second reading.

    5/19/2025Senate

  12. Recommendation: Do pass with amendments to the A-Eng. bill. (Printed B-Eng.)

    5/16/2025Senate

  13. Work Session held.

    5/8/2025Senate

  14. Public Hearing held.

    4/29/2025Senate

  15. Referred to Labor and Business.

    4/23/2025Senate

  16. First reading. Referred to President's desk.

    4/23/2025Senate

  17. Third reading. Carried by Boshart Davis. Passed.

    4/22/2025House

  18. Rules suspended. Carried over to April 22, 2025 Calendar.

    4/21/2025House

  19. Rules suspended. Carried over to April 21, 2025 Calendar.

    4/17/2025House

  20. Second reading.

    4/16/2025House

  21. Recommendation: Do pass with amendments and be printed A-Engrossed.

    4/15/2025House

  22. Work Session held.

    4/9/2025House

  23. Public Hearing and Work Session held.

    3/31/2025House

  24. Referred to Labor and Workplace Standards.

    1/17/2025House

  25. First reading. Referred to Speaker's desk.

    1/13/2025House

Bill Text

  • Enrolled

    5/29/2025

    PDF

  • B-Engrossed

    5/16/2025

    PDF

  • Senate Amendments to A-Engrossed

    5/16/2025

    PDF

  • SLB Amendment -A5 (Proposed)

    5/8/2025

    PDF

  • SLB Amendment -A6 (Adopted)

    5/8/2025

    PDF

  • SLB Amendment -A4 (Proposed)

    5/6/2025

    PDF

  • SLB Amendment -A5 (Proposed)

    5/6/2025

    PDF

  • SLB Amendment -A6 (Proposed)

    5/6/2025

    PDF

  • A-Engrossed

    4/15/2025

    PDF

  • House Amendments to Introduced

    4/15/2025

    PDF

  • HLWS Amendment -3 (Adopted)

    4/9/2025

    PDF

  • HLWS Amendment -3 (Proposed)

    4/7/2025

    PDF

  • HLWS Amendment -2 (Proposed)

    4/2/2025

    PDF

  • HLWS Amendment -2 (Proposed)

    3/31/2025

    PDF

  • Introduced

    1/10/2025

    PDF

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