As a result of the June 27th, 2025, Legislative Assembly, Oregon employers must familiarize themselves with several key compliance updates, which went into effect on January 1st, 2026.
Effective January 1st, 2026, changes will go into effect regarding the following labor laws:
As a result of SB 426, property owners and contractors may now be held liable for unpaid wages to unrepresented employees on construction projects.
Such employees may now take civil action for unpaid wages within two years from the date the wages and benefits were due. However, before doing so, the employee must send a written notice of nonpayment to the employer, who then has 21 days to correct the violation before civil action can be taken.
It is a common practice for public employers to increase an employee's pay as a reward for the use / need for multilingual skills on the job.
As a result of SB 731, public employers must now offer the same pay differential to employees who use or may need to use American Sign Language (ASL) as they do other multilingual employees.
Previously, public Oregon employers were required to provide a preference in hiring and promotions for veterans, including disabled veterans.
As a result of SB 808, this requirement now includes preference for hiring and promotions to current and former members of the Oregon National Guard.
Under existing Oregon Payroll Laws, employers were required to provide employees with an itemized pay statement, typically done in the form of what's commonly referred to as a pay stub.
With the passing of SB 906, employers are now required to provide new hires with an explanation of earnings and deductions that helps them understand what the pay stub contains. Employers can provide new hires with a physical or digital copy of this explanation or by posting it in a conspicuous place in the workplace. This "notice" must be reviewed each year.
Required information includes:
Employers can find a template that they can adopt to meet the new requirement here.
The passing of SB 968 established a new allowable payroll deduction by public employers for overpayment. Specifically, overpayment from wages that occurred in the previous 364 days.
However, before doing so, employers must provide the following at least 10 days before the deduction takes place:
It is important to note that deductions by any employer are prohibited unless they meet a certain set of requirements, outlined in ORS 652.610(3).
SB 1108 added a new qualifying use for time off under the Oregon Sick Time Law. Specifically, employees can use time off for blood donation made in connection with a voluntary program approved or accredited by the American Association of Blood Banks or the American Red Cross.
SB 1148 amends ORS 743B.260, prohibiting an employer or insurer from requiring an employee who is eligible for disability benefits to use benefits under Paid Leave Oregon, prior to being eligible for disability benefits under a company insurance policy.
This bill only applies to policies offered, issued, or renewed on January 1st, 2026 or later.
Oregon is on the forefront when it comes to employee protections and labor laws, and it can be hard for some employers to keep up.
Having an experience Oregon Payroll Company at your back can make all the difference. Contact us today to learn more about how GNSA helps companies maintain compliance with Oregon Labor Laws.