Bill > HB2820

This bill introduces regulations for nonprofit corporations seeking public contracts in Oregon, establishing a compensation ratio limit and disclosure requirements. Specifically, the bill defines a "covered entity" as a corporation receiving at least 20% of its revenues from public resources, with annual revenues of $10 million or more and at least five full-time employees. Such entities are prohibited from having a compensation ratio (the difference between the highest and lowest paid employee) exceeding 50 to 1. Contracting agencies are required to reject bids from companies that exceed this ratio, disclose this prohibition in contract solicitations, and include provisions that allow for contract termination and potential debarment if the ratio is violated. Companies must declare and substantiate their compensation ratio when bidding on public contracts and periodically reaffirm compliance during the contract term. The bill becomes operative on January 1, 2026, giving organizations time to adjust their compensation structures. Importantly, the legislation aims to promote wage equity by discouraging extreme income disparities within organizations seeking public funding, while providing regulatory agencies the ability to implement and enforce these requirements through rule-making processes.

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2820