Summary: Oregon enacts Senate Bill 1587, which is designed to increase transparency in employee pay and expose wage and hour violations. Effective January 1, 2017, employers will be required to provide additional details on itemized pay statements.
Effective Date: January 1, 2017
Coverage: All Oregon employers.
Action Required: In order to ensure compliance with these new requirements, and to help prevent enforcement actions and avoid potential penalties, please follow the steps detailed in the “Help Us Help You Meet Your Pay Statement Obligation” section of this communication and contact your Payroll Service Representation (PSR) and/or Human Resources Business partner (HRBP) with any questions you may have.
Article:
Oregon recently signed into law Senate Bill 1587, which expands the information that must be included in the itemized statements provided to employees with each payment of wages. This includes any payment of wages, on regular paydays and at other times when payment of wages, salary or commission is made. Employers must comply with the new requirements, summarized below, beginning January 1, 2017.
Pay Statement Requirements
Pursuant to the new amendments, the statement must include:
- Date of the payment;
- Dates of work covered by the payment;
- Employee’s name;
- Name and business registry number or business identification number of the employer;
- Address and telephone number of the employer;
- Rate or rates of pay;
- Whether the employee is paid by the hour, shift, day, or week or on a salary, piece, or commission basis;
- Gross wages;
- Net wages;
- Amount and purpose of each deduction made during the period of service that the payment covers;
- Allowances, if any, claimed as part of minimum wage;
- Unless paid on a salary basis and legally exempt from overtime pay, the regular hourly rate or rates of pay, the overtime rate or rates of pay, the number of regular hours worked and pay for those hours, and the number of overtime hours worked and pay for those hours; and
- For piece rate employees, the applicable piece rate or rates of pay, the number of pieces completed at each rate, and the total pay for each rate.
Employers may provide itemized pay statements to employees in electronic form, but only if an employee expressly agrees to receive them in electronic form and the employee has the ability to print or store the statement at the time of receipt.
Help Us Help You Meet Your Pay Statement Obligation
ADP is committed to assisting its clients. Many of the above requirements already display on Oregon employer’s pay statements, but some may not without additional information from you. We need your help in order to ensure we are able to generate a fully compliant pay statement for your company on January 1st. Please contact your Payroll Service Representative to discuss your pay statement.
As always, please be sure to contact your PSR and HRBP if you have any questions.