Promise may override wage freeze.

Byline: On the Job by Bureau of Labor & Industries For The Register-Guard

Q: I direct a nonprofit organization that receives most of its funding from government grants. Because of legislative changes, our operating funds have been reduced, and we've imposed a wage freeze for employees. The problem is that we told one employee who we hired several months ago that he'd receive a 2.5 percent salary increase at the end of six months. Are we bound to do that, despite our new wage freeze?

A: Probably. Though employers aren't generally obligated to provide raises, it sounds as though someone in authority at your agency promised this employee a raise. And apparently, that promise wasn't made conditional upon your agency's future financial status. This employee could claim a breach of contract if he doesn't receive the promised increase.

Q: Is it true that employees may soon be eligible to take paid family leave? Is the law changing?

A: You've probably heard about changes that will take effect for employees in California. But OFLA and FMLA, the Oregon and federal leave laws, still provide for unpaid family leave.

An eligible employee who works for an employer covered by these laws may generally take up to 12 weeks of unpaid leave a year for serious health conditions of the employee or family member, or for parental leave to care for and bond with a new child. The Oregon law also allows time off to care for sick children with non-serious conditions.

Although OFLA and FMLA allow for unpaid leave, employees are entitled to use their paid personal or vacation time during a family leave absence. Employees are also entitled to use paid sick leave during a parental leave and whenever consistent with the employer's sick leave policy. Employers may also require employees to exhaust paid leave during family leave absences.

California has become the first state to pass a law allowing for some paid family leave. The new California law becomes effective in 2004 and allows six weeks of partial pay (55 percent of a worker's salary, capped at $728 a week) for employees needing time off to care for an infant, sick child or family member. The paid leave will be funded by deductions from employee paychecks.

Q: We run laboratories that handle drugs, so we have tight security in place at our various locations. We frequently have trouble retrieving office keys from departing employees, and we often have to re-key a facility when this happens. May we legally deduct the re-keying costs from an employee's final paycheck?

A: That wouldn't legal under the Oregon deduction law, ORS 652.610. That statute allows for certain payroll deductions that are legally required and for other deductions that are for the benefit of the employee, when the employee has signed a written authorization. A deduction to recoup re-keying costs would be for your benefit and wouldn't be legal, even if the employee signed an authorization.

At the time you issue property or keys to employees, you can require them to sign an agreement to return the items upon separation. The agreement may even say that the employee will owe you certain costs if he or she fails to return the items. However, you'd have to enforce such an agreement in court and not by taking the funds out of the employee's paycheck.

Another legal option would be to charge employees a deposit when you issue them tools, equipment, uniforms or keys. This required deposit would be legal only as a direct charge, not a payroll deduction, and only if the employee earns enough so that paying you the deposit in one pay period wouldn't have the effect of forcing him or her below the minimum wage level.

On The Job is written by attorney Dan Grinfas of the Oregon Bureau of Labor and Industries. The column answers questions about employment law. To contact BOLI, call [phone], or write to BOLI, 800 NE Oregon St. #32, Portland, OR 97232.