Employer Updates for 2026

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As the weather continues to worsen and the days increasingly grow shorter, it can only mean one thing — the end of the year approaches. With the new year comes many new things, including a bevy of new laws becoming effective. This year, the Oregon Legislature passed several new laws that employers should have on their radar, and we have identified a number of particularly relevant changes that you will want to ensure you are tracking as the calendar flips over. From payroll transparency to construction wage liability, these changes will require proactive updates to policies and HR practices.

Employers Must Provide Detailed Payroll Information to New Hires

Paystubs are something we are all used to dealing with, but what must be included and when has shifted. SB 906 requires employers to provide new hires with a written explanation of earnings and deductions shown on their itemized statements, including the regular pay period, all the types of pay rates an employee may be eligible for, all the types of potential deductions and their purpose, benefits that may appear as contributions and deductions, and all payroll codes that may be used (along with a detailed description or definition for each). Employers must then review and update this information by January 1 of each year.

Employers can satisfy the requirements of the new law by making the information available to employees in a location easily accessible to them, such as a link to a website, a physical document posted in a central location, a shared electronic file, or e-mail. The Bureau of Labor and Industries (BOLI) has also created a model document which employers can reference and use.

Blood Donation Qualifies as Protected Sick Time

Continuing to change how sick time may be used, SB 1108 amends ORS 653.616 to add “blood donation” to the list of reasons an employee may use sick time. Specifically, an employee may now use sick time for blood donation that is made in connection with a voluntary program for the donation of blood that is approved or accredited by the American Association of Blood Banks or the American Red Cross.

Public Employers Can Deduct Wage Overpayments (After Providing Notice)

If you are a public employer, SB 968 now permits you to deduct an overpayment of wages with specific notice requirements. The deduction must be for an overpayment that occurred during the 364-day period immediately preceding the date on which the public employer provides the employee with a number of specific written statements itemizing the overpayment and deductions and describing rights of both the employee and the employer, which must be provided at least 10 calendar days before making the deduction.

Construction Wage Liability is Expanded to Property Owners and Direct Contractors

Property owners and contractors can now be directly liable for unpaid wages, fringe benefit contributions, and penalties owed to unrepresented employees — whether those employees work for the direct contractor or a subcontractor.

With the passage of SB 426, an unrepresented employee, an authorized third-party representative, or the Attorney General can bring a civil action against an owner, a direct contractor, or a subcontractor to recover the unpaid wages. The lawsuit must be filed within two years from the date the wages and fringe benefit contributions were due.

Importantly, prior to commencing a lawsuit against an owner or a direct contractor, a person must send written notice that sets forth the alleged violation, the nature of the claim, and states that the owner and the direct contractor have 21 calendar days to correct the alleged violation. If the alleged violation is corrected within 21 days, no lawsuit may be filed.

While an owner or direct contractor may seek recovery against a subcontractor for any amount paid, they can no longer shield themselves completely from liability for unpaid wages.

Interviewers Cannot Ask an Applicant When They Attended or Graduated From an Educational Institution

The Legislature has also given employers another reason to review its application and interview practices. HB 3187 makes it unlawful for an employer, prospective employer, or employment agency, prior to completing an initial interview (or if there is no initial interview, prior to making a conditional offer of employment), to request or require disclosure of an applicant’s age, date of birth, or when the applicant attended or graduated from any educational institution. Exceptions apply when such information is required to affirm that the applicant meets bona fide occupational qualifications or comply with a federal, state, or local law, rule, or regulation.

BOLI Can Issue Advisory Opinions, and There’s a New Employer Assistance Division

HB 2248 establishes the Employer Assistance Division within BOLI. This is a new resource for employers, the purpose of which is to provide education, training, and interpretive guidance, including advisory opinions, to employers to assist them in complying with laws that are enforced by BOLI.

Generally, BOLI cannot impose a penalty on an employer for any good faith action taken in reliance on their “discussion communications” (defined by the statute), and discussion communications between BOLI and an employer cannot be disclosed and admitted as evidence in a subsequent BOLI proceeding unless the employer requests disclosure.

(These last two bills went into effect on September 26, 2025.)

With these changes in mind, now is an excellent time to update your policies, train HR teams, and take other proactive steps to avoid liability and ensure compliance in the year ahead.

Wilson Jarrell is a partner at Barran Liebman LLP where he represents employers on a wide range of employment issues. Contact him at 503-276-2181 or wjarrell@barran.com.

Missy Oakley is an attorney with Barran Liebman LLP where she represents employers on a wide range of employment issues. Contact her at 503-276-2122 or moakley@barran.com.

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