Oregon farmers will keep paying unemployment taxes for H-2A foreign guest workers, as a proposal to relieve them of that obligation has died in committee.

House Bill 3142 would have spared growers from unemployment taxes for H-2A workers, who are ineligible to receive unemployment insurance, but the bill failed to survive this year’s first legislative deadline.

Proponents argued HB 3142 would level the playing field between Oregon and several other states with such exemptions at a time when its farmers face among the highest labor costs in the nation.

“In effect, we are absorbing a tax for a benefit these workers cannot use. This creates an inequitable financial burden on our operations, especially when we are already challenged by a host of other regulatory and operational costs,” said Parker Sherrell, owner of a tree fruit operation, in submitted testimony.

Critics countered that such a tax break would give H-2A employers an unfair advantage over growers who hire domestic workers and undermine the overall unemployment insurance system.

“We want employers to invest in Oregon workers who will reinvest their wage dollars in their Oregon communities. It is not in our state’s best interest to reward employers who hire temporary foreign workers,” said Kate Suisman, attorney for the Northwest Workers Justice Project, in submitted testimony.

The House Labor Committee held a public hearing on HB 3142 in February but didn’t schedule a work session to vote on the proposal by March 21, which means the bill automatically died.