Kotek Orders State to End Travel Reimbursement for Remote Workers, Returning to Pre-COVID Policy

The policy created inequity with Oregon-based workers who pay their own commuting expenses.

TAKEOFF: Oregon state employees living in other states must now pay their own travel costs. (Brian Burk)

Oregon Gov. Tina Kotek has ordered the end of a pandemic-era policy of paying the travel expense for state employees who have permanently relocated to other states but periodically return to Oregon for work. WW revealed the policy in August 2022, then reported that more than 500 state employees qualified for reimbursement.

“We must ensure that state resources are used effectively to serve Oregonians,” said interim Oregon Department of Administrative Services director Berri Leslie, who DAS said made the change at Kotek’s direction.

DAS implemented the controversial reimbursement policy in December 2021, as a recognition that some employees had moved elsewhere when state offices closed, and didn’t want to come back. In a tight labor market, state officials said the policy would improve retention of existing employees and recruitment of new ones.

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Elected officials in both parties took issue with the policy because it afforded remote employees better treatment than those who remained in Oregon and paid their own commuting expenses. State Treasurer Tobias Read, a Democrat, objected to the reimbursement policy, both because he wanted to see treasury employees in the office frequently and because he thought it raised fairness issues.

Senate Minority Leader Tim Knopp (R-Bend) also took exception to the policy, calling it “deeply unfair.”

Knopp introduced Senate Bill 853 earlier this session to prohibit the state from paying travel expenses for remote employees. When Service Employees International Union raised objections to Knopp’s bill, he amended it to exclude union employees. The measure then passed the Senate unanimously and awaits action in the House.

That bill now appears to be moot.

Cheering Kotek’s announcement, Knopp noted that all of his 29 Senate colleagues and a bipartisan group of House co-sponsors had joined him in seeking to end travel reimbursement for employees who’d permanently relocated.

“Sponsored by all 30 senators and over half the House, SB 853 is not only bipartisan, but the right thing to do,” Knopp said. “I appreciate the governor joining us in this effort to end an unfair and wasteful policy.”

Remote employees may continue to live out of state, but beginning Sept. 1, they’ll have to pay for work travel back to Oregon.


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