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Oregon Senate Bill 748 Sparks Debate Over Unemployment Benefits and Drug Testing

by Tonya McPhearson
January 29, 2025
in Oregon
Oregon Senate Bill 748 Sparks Debate Over Unemployment Benefits and Drug Testing
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On Tuesday, the Oregon Senate Committee on Labor and Business convened to hear public testimony on Senate Bill 748, a proposed piece of legislation that would allow the Oregon Employment Department to require drug tests for individuals filing for unemployment benefits after being terminated for drug use or working in jobs that regularly require drug testing, such as truck drivers or pilots.

Senator David Brock Smith, who introduced the bill, explained that it aims to address ongoing issues between employers and employees regarding drug use. He emphasized that the bill is not an aggressive solution but rather a way to help individuals re-enter the workforce while tackling the drug use problem. “This is a way that looks to address it, but not aggressively,” Brock Smith stated during the session.

The bill has raised significant concerns, particularly among labor advocates and legal experts, who argue that it could create additional barriers for unemployed workers. Lindsay Leahy, the Unemployment Insurance Division Director at the Oregon Employment Department, clarified that the proposed drug testing would not be used as a prescreening tool for employers, assuring committee members that the results would remain confidential and that unemployment insurance laws protect applicants’ privacy.

Senator Cedric Hayden questioned whether the department’s drug tests could expedite job placements by providing employers with information about potential hires. Leahy responded, stating that confidentiality laws prevent the department from sharing drug test results with employers for hiring purposes.

Despite these assurances, opponents of the bill, including Tan Perkins from the Oregon AFL-CIO, voiced concerns about the potential harm it could cause to individuals already facing hardship. Perkins argued that unemployment insurance is meant to help people in tough times, not punish them further. “Unemployment exists to help, not harm. Creating any kind of extra step to a social benefit reduces the effect,” Perkins said. “If someone is fired for drug use, they need help, not punishment.”

Perkins was joined by Odelis Aguilar from the Oregon AFSCME Council and Martha Sonato from the Oregon Law Center, both of whom also expressed opposition to the bill. Aguilar warned that the bill would create a new cycle of harm, trapping people in a cycle of unnecessary hurdles that could worsen their financial situation. Sonato echoed these concerns, arguing that Senate Bill 748 would complicate the state’s unemployment insurance system, which is already a critical safety net for workers between jobs.

“Under current law, if someone is fired for drug use, they can be disqualified from receiving unemployment benefits,” Sonato explained. “However, once they’ve requalified by earning enough income, they can begin receiving benefits again. Senate Bill 748 would add an extra step, requiring individuals to pass a state-administered drug test before they could file for unemployment benefits again. This could delay the process and create additional strain on the system.”

Proponents of the bill, including Brock Smith, suggested that it would provide individuals an opportunity to regain employment while addressing the issue of drug use. The senator highlighted that individuals who pass the test would be able to resume receiving benefits, potentially facilitating their return to the workforce.

As the debate continues, it remains unclear whether Senate Bill 748 will gain the support needed to pass into law. Opponents argue that it adds unnecessary complexity to an already strained system, while proponents see it as a potential solution to an ongoing issue in the workplace.

The Oregon Senate Committee on Labor and Business is expected to review additional testimony before making a decision on the bill. For now, the fate of Senate Bill 748 remains uncertain, with strong arguments on both sides of the debate.

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