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Panel hears bill allowing OED to require drug tests for some unemployment claimants; unions and legal advocates oppose
Summary
Senate Bill 748 would permit the Oregon Employment Department to require drug testing for initial unemployment‑insurance claimants under limited circumstances. The committee heard extensive testimony raising concerns about public‑benefit barriers, administrative cost, and potential harms to people with substance‑use disorders.
Senate Bill 748, introduced by Senator David Brock Smith, would permit the director of the Oregon Employment Department to require an individual filing an initial claim for unemployment insurance benefits to submit to a drug test for unlawful controlled‑substance use if the individual was terminated from their most recent employment for unlawful drug use or if suitable work available to the claimant is only in occupations that regularly conduct drug testing.
Senator Brock Smith framed the bill as a targeted, discretionary tool intended to address workplace safety in occupations where drug testing is common and to give claimants an opportunity to demonstrate they are not using substances before receiving benefits. "The director of the employment department may require an individual," he said, emphasizing the bill uses permissive language rather than a mandatory requirement.
The hearing included extended questioning from committee members and testimony from agency staff. Lindsay Leahy, Unemployment Insurance Division director at the Employment Department, explained the agency’s confidentiality obligations and administrative limits. Leahy said UI confidentiality prevents the department from providing claim information to employers or using claimant‑testing results as a hiring pool; she also noted the agency would absorb administrative costs and would need staff resources to operate testing if the authority were used.
Several unions and legal‑services groups testified in opposition. Tan Perkins of the Oregon AFL‑CIO said unemployment insurance is a vital social safety net and argued drug testing would do “exponentially more harm than good,” risking homelessness and destabilizing people already affected by substance use. Alyssa Aguilar of Oregon AFSCME said the additional barrier would stigmatize workers and worsen economic instability. Martha Sonato of the Oregon Law Center said the bill would add administrative delay and cost, and that current law already allows disqualification for some separations related to drug use while also providing routes to re‑qualify.
Committee members discussed whether the concept could be modified to create a voluntary prescreen pool so employers could hire pretested candidates (several senators suggested amendments or asked staff to draft options). Agency staff said current law already allows some disqualification based on employer‑policies and that the department sometimes considers treatment and remediation when deciding eligibility. No committee vote occurred; the matter remained at the public‑hearing stage at the close of Jan. 28.
