Oregon has enacted SB 906 creates a new hire notice requirement effective Jan. 1, 2026.
The Details:
SB 906 requires that Oregon employers provide at the time of hire a written explanation of earnings and deductions required to be shown on itemized pay statements as outlined ORS 652.610. In addition, employers are required to review and update the required information by every Jan. 1.
The legislation stipulates that “an employer may satisfy the requirements…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 delivery by electronic mail.”
Specifically, the written notice must include general information on the following:
· The employer’s established regular pay period.
· All types of pay rates that employee may be eligible for such as hourly pay, salary pay, shift differentials, piece rate pay and commission-based pay.
· All benefit deductions and contributions.
· Every type of deduction that my apply.
· The purpose of deductions that may be made during a regular pay period.
· Allowances, if any, claimed as part of the minimum wage.
· Employer-provided benefits that may appear on the itemized pay statements as contributions and deductions.
· All payroll codes used for pay rates and deductions, along with a detailed description or definition of each code.
Failure to provide the notice as required is subject to $500 penalty.
Additionally, SB 906 requires the Oregon Bureau of Labor and Industries to develop and make available to employers a model written guidance document in English and Spanish and when practicable translate the notice to other languages if requested.
Next steps:
Oregon employers should review the notice requirements enacted under SB 906 and implement the requirements by Jan.1, 2026.