What happened?

On May 28, 2025, Oregon enacted SB 906, a new payroll transparency law that takes effect January 1, 2026. The law requires employers to provide new hires with clear, written information about how they are paid, what deductions may apply, and how to understand their paystubs.

Overview:

What Employers Must Disclose: At the time of hire, employers must provide a written explanation that includes:

• The employer’s regular pay period
• All types of pay rates employees may be eligible for (e.g., hourly, salary, commission)
• All benefit deductions, contributions, and other possible deductions
• The purpose of each deduction
• Any allowances claimed as part of minimum wage (e.g., meals, lodging, tips)
• Employer-provided benefits that may appear on paystubs.
• All payroll codes used for paying and deductions, with clear definitions or descriptions.
• This information must be reviewed and updated annually by January 1.
• To help meet this requirement, BOLI provides a customizable notice template in English and Spanish.

How to Deliver the Information: Employers may provide the required information in any easily accessible format, such as:

• A link to a website.
• A posted document in a central location.
• A shared electronic file.
• Email or onboarding materials.

Enforcement and Support

• The Oregon Bureau of Labor and Industries (BOLI) will issue a model guidance document in English, Spanish, and other languages upon request.
• BOLI may issue a $500 civil penalty for noncompliance.
• Employees cannot sue for violations; only BOLI can enforce the law.

Source References

• Oregon SB 906 – Relating to transparency concerning employer deductions from wages

Resources

• Oregon BOLI Website

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