Oregon Employment Law Updates 2025–2026

Why Oregon Employment Law Is Changing in 2025 and 2026

Oregon has long taken an active approach to workplace regulation. The state already has distinctive rules on minimum wage, sick time, family leave, pay equity, rest breaks, heat illness prevention, wildfire smoke exposure, and wage deductions. The 2025 legislative session added another layer of updates that employers should fold into their 2026 planning.

The big theme is transparency. Lawmakers are pushing employers to be clearer with applicants, employees, contractors, workers on leave, and workers in higher-risk industries. That means job applications need a second look, payroll notices need updates, leave policies should be coordinated more carefully, and construction contracts need stronger wage-protection language.

Oregon Minimum Wage Updates for 2025–2026

Oregon continues to use a three-tier minimum wage system based on work location. For the period from July 1, 2025, through June 30, 2026, the minimum wage is $16.30 per hour in the Portland metro area, $15.05 per hour in standard counties, and $14.05 per hour in nonurban counties. Beginning July 1, 2026, those rates increase to $16.80, $15.55, and $14.55 respectively.

What Employers Should Do

Employers should update payroll systems before July 1 each year, especially if employees travel between counties. Oregon generally looks at where the employee performs work, and mobile employees may trigger different rates depending on where they start, end, or spend most of their time.

A simple example: if a landscaping employee works mostly inside the Portland urban growth boundary, the Portland metro rate may apply. If another employee works in a standard-rate county, that employee may be subject to the standard rate. Payroll software is wonderful, but it is not psychic; employers should verify location settings manually.

HB 3187: Age-Related Hiring Questions Are Restricted

One of the most practical Oregon employment law updates for 2025 is HB 3187, which limits when employers, prospective employers, and employment agencies may ask applicants about age, date of birth, or school attendance and graduation dates. The rule is designed to reduce age-based screening before applicants have a fair chance to be considered.

The restriction generally applies until after an initial interview is completed or, if there is no interview, until a conditional offer of employment is made. Limited exceptions may apply when the information is needed for a bona fide occupational qualification or to comply with law.

Practical Hiring Example

Instead of asking, “What year did you graduate?” an employer can ask whether the applicant has the required degree, certification, license, or experience. Instead of asking for date of birth early in the process, wait until the information is legally necessary for background checks, onboarding, benefits, payroll, or age-restricted job duties.

SB 906: New Hire Pay Statement Explanations Begin in 2026

SB 906 creates one of the most important payroll transparency obligations for Oregon employers in 2026. Employers must provide new hires with information explaining earnings and deductions that appear on itemized pay statements. The notice may be provided electronically, through a website or server link, posted in a conspicuous workplace location, included in a handbook, or handed out on paper.

The notice should explain the employer’s regular pay period, pay rates, shift differentials, piece rates, commissions, benefit contributions, deductions, payroll codes, allowances, and other items that may appear on the employee’s wage statement. Employers must also review and update the information by January 1 each year.

Why This Matters

Payroll confusion is one of the fastest ways to lose employee trust. A worker who sees mysterious codes, unexplained deductions, or unclear overtime lines may assume something is wrong even when payroll is accurate. SB 906 pushes employers to explain the paycheck before the paycheck becomes a riddle worthy of a detective podcast.

Paid Leave Oregon and OFLA Coordination

Oregon employers must continue paying close attention to the interaction between Paid Leave Oregon, the Oregon Family Leave Act, the federal Family and Medical Leave Act, and Oregon sick time. SB 69 makes technical and administrative changes involving Paid Leave Oregon and OFLA, including rulemaking authority, complaint timing, fitness-for-duty certification, sick child leave clarification, and coordination of wage replacement.

Paid Leave Oregon remains separate from OFLA and FMLA. In many cases, Paid Leave Oregon provides wage replacement and job protection, while OFLA may cover narrower job-protected leave reasons such as pregnancy disability, bereavement, and sick child leave. Employees generally cannot stack Paid Leave Oregon and OFLA for the same covered leave at the same time.

2026 Paid Leave Contribution Rate

For 2026, the Paid Leave Oregon contribution rate remains 1% of subject wages up to $184,500. Employees pay 60% of the contribution, while employers with 25 or more employees pay 40%. Smaller employers generally still withhold and remit the employee share, even if they do not pay the employer share.

SB 1108: Oregon Sick Time Can Cover Blood Donation

Beginning January 1, 2026, SB 1108 allows Oregon employees to use protected sick time for blood donation through a voluntary program approved or accredited by the American Association of Blood Banks or the American Red Cross. This is a small update with a big practical point: sick time policies should not be copied from last year and tossed into 2026 like leftovers.

Employers should revise sick time policies, manager training, leave request forms, and HRIS leave codes. Employees should also be informed that blood donation may qualify as a protected sick time use when the program meets the law’s requirements.

HB 2541: Lactation Break Protections Expand for Certain Agricultural Workers

HB 2541 expands workplace milk-expression rights to certain agricultural employees who were previously excluded from these protections. Covered workers include certain piece-rate hand harvest or pruning laborers who commute daily from a permanent residence and have been employed in agricultural labor for less than 13 weeks during the preceding calendar year.

Employers in agriculture should review break procedures, privacy locations, supervisor training, and field-work logistics. A compliant policy on paper is not enough if workers cannot realistically access a private place that is not a restroom.

HB 2957: Employers Cannot Shorten Certain Claim Deadlines by Agreement

HB 2957 restricts agreements that shorten the statute of limitations for violations within BOLI’s enforcement authority. This means employers should review employment agreements, severance agreements, arbitration agreements, handbooks, and onboarding documents for language that attempts to reduce an employee’s time to bring certain claims.

For example, a contract clause requiring an employee to bring all wage or discrimination claims within six months may be risky if it conflicts with Oregon’s rules. Employers should have counsel review any claim-deadline language before relying on it.

HB 2248: BOLI Employer Assistance Becomes More Formal

HB 2248 establishes Employer Assistance as a formal division within BOLI. The purpose is to provide education, training, interpretive guidance, and advisory opinions to help employers understand laws enforced by the agency. For employers, this creates a clearer path to compliance support, especially when they are trying to fix problems before they become complaints.

However, guidance is not the same as private legal advice. Employers should use BOLI resources as part of a broader compliance strategy, especially for complex issues such as wage deductions, leave stacking, discrimination claims, and contractor classification.

SB 426: Construction Wage Liability Expands in 2026

SB 426 is a major update for Oregon construction projects. Beginning January 1, 2026, certain property owners and contractors may face liability for unpaid wages owed to unrepresented employees working on construction projects. Claims may include wages, interest, penalty wages, damages, and attorney fees.

The law includes a written notice process before a civil action may be filed. If the violation is corrected within 21 days after notice, a lawsuit may be avoided. The law also requires subcontractors to provide certain payroll and worker information when requested by covered parties.

What Construction Businesses Should Do

Owners and direct contractors should strengthen subcontractor vetting, require timely certified payroll information, review indemnity language, and monitor lower-tier subcontractors more closely. The old “not my employee, not my problem” approach is becoming legally dusty.

HB 2688: Prevailing Wage Expands to Certain Off-Site Fabrication

HB 2688 expands Oregon prevailing wage coverage to certain bespoke off-site fabrication, assembly, preconstruction, or construction work performed for a particular public work. Although the bill takes effect in 2025, the prevailing wage amendments apply to certain procurements or public contracts entered into on or after July 1, 2026.

Public contractors should review bidding assumptions, fabrication arrangements, subcontract scopes, and cost estimates. If off-site work is custom-built for a public project, it may require closer prevailing wage analysis than before.

SB 916: Unemployment Benefits for Striking Workers

SB 916 authorizes limited unemployment insurance benefits for Oregon workers who are unemployed because of a strike, lockout, or labor dispute beginning in January 2026. Striking workers may be eligible for up to 10 weeks of benefits in 2026, subject to eligibility rules, an unpaid strike week, the standard waiting week, and active work-search requirements.

This update may affect collective bargaining strategy, labor relations planning, public employers, private employers, and unions. Employers should update strike-response plans, budgeting assumptions, and communications protocols. Employees should understand that eligibility is not automatic; claimants still must follow unemployment insurance rules.

SB 731 and SB 808: Public Employer Updates

SB 731 requires public employers that offer bilingual or multilingual pay differentials to provide the same differential for employees who use American Sign Language on the job. Public agencies should review compensation policies, job descriptions, and payroll codes to make sure ASL is treated consistently.

SB 808 extends veterans’ preference in public employment to former and current Oregon National Guard members. Public employers should update hiring and promotion procedures, applicant scoring tools, and HR training materials.

SB 968: Public Employer Overpayment Deductions

Beginning January 1, 2026, SB 968 allows public employers to deduct certain wage overpayments that occurred in the previous 364 days, but only if specific notice requirements are met. The employer must provide written information about the overpayment amount, deduction purpose, deduction limits, and final paycheck implications.

This law does not give employers a free pass to grab money from paychecks. Oregon wage deduction rules remain strict. Public employers should build a careful written process and train payroll staff before attempting deductions.

SB 1148 and SB 1168: Disability Insurance and Home Health Compensation

SB 1148 prohibits certain disability income insurance policies from requiring a person to apply for or use Paid Leave Oregon benefits before becoming eligible for disability benefits under the policy. This applies to policies offered, issued, or renewed on or after January 1, 2026.

SB 1168 updates compensation rules for home health care and home hospice care staff. Current law has restricted per-visit compensation for nurses; the update broadens and clarifies how the restriction applies to home health care and hospice staff. Agencies should review pay structures, service models, and payroll classifications.

HB 4111 and SB 1570: Immigration-Related Workplace Protections

HB 4111 limits the use of immigration status in civil proceedings and makes it an unlawful employment practice for an employer to punish an employee because the employee updates or attempts to update personal information based on lawful changes to work authorization documentation. The bill also clarifies that employers may still take actions necessary to comply with federal employment verification requirements.

SB 1570 applies to health care facilities and includes protections related to distribution of state-published immigrant rights or immigration legal-services materials. Health care employers should be careful not to discipline employees for protected distribution of qualifying informational materials.

Health Care Workplace Violence Prevention Updates

Health care employers should watch SB 537 and related Oregon OSHA rulemaking. The law creates or expands workplace violence prevention requirements for certain health care sites, with attention to assessments, prevention plans, training, reporting, and worker safety procedures. Oregon OSHA has identified SB 537 implementation as part of its 2026 rulemaking activity.

Hospitals, home health agencies, home hospice programs, and other covered entities should prepare now by reviewing workplace violence logs, safety committees, badge policies, employee training, incident response procedures, and post-incident support. Workplace violence prevention is not just a policy binder issue; it is a staffing, safety, patient-care, and retention issue.

Oregon Heat Illness and Wildfire Smoke Compliance Still Matters

Although Oregon’s heat illness and wildfire smoke rules are not brand-new for 2026, they remain central to employment law compliance. Oregon OSHA continues reminding employers that heat protections apply when the heat index reaches 80 degrees Fahrenheit, with additional requirements above 90 degrees Fahrenheit. Employers must address water, rest, shade, acclimatization, communication, training, and emergency planning.

Outdoor employers, warehouses, farms, construction sites, delivery operations, and businesses with employer-provided housing should refresh training before summer. A good rule of thumb: if your workplace plan still says “check weather occasionally,” it probably needs more muscle.

Compliance Checklist for Oregon Employers in 2025–2026

• Update minimum wage rates before July 1 each year.
• Remove age, date-of-birth, and graduation-year questions from early hiring steps unless an exception applies.
• Create or update the SB 906 new hire pay-statement explanation.
• Review Paid Leave Oregon, OFLA, FMLA, and sick time coordination procedures.
• Add blood donation as a qualifying Oregon sick time use where applicable.
• Review employment agreements for shortened claim-deadline language.
• Strengthen construction subcontractor payroll monitoring under SB 426.
• Prepare for strike-related UI rules if labor disputes are possible.
• Update public employer policies for ASL differentials and Oregon National Guard preference.
• Refresh heat illness, wildfire smoke, and health care workplace violence prevention procedures.

Experience-Based Insights: What Oregon Employers Learn the Hard Way

In real workplace compliance, the biggest problems rarely come from one dramatic mistake. They usually come from small assumptions repeated over and over until someone finally asks, “Wait, why are we doing it that way?” Oregon employment law updates for 2025–2026 are a perfect example. A payroll code that made sense five years ago may now look cryptic. A job application that once seemed harmless may ask for graduation dates too early. A subcontractor agreement that worked on last year’s construction project may not offer enough protection under new wage liability rules.

One useful experience from HR and payroll practice is that employees do not judge compliance only by whether the company is technically right. They judge it by whether the company can explain what happened. If an employee asks why a deduction appeared on a paycheck and the answer is “that is just how the system does it,” trust evaporates quickly. SB 906 is important because it turns explanation into a compliance habit. Employers that build a clear pay-statement guide, define deduction codes, and train managers to answer basic questions will avoid many preventable disputes.

Another lesson is that hiring compliance must be designed into the process, not patched on at the end. A recruiter may not intend to discriminate by asking when someone graduated, but intent does not fix a noncompliant form. Employers should audit online applications, paper forms, interview scripts, background-check timing, and third-party recruiting tools. The best system gently prevents managers from asking the wrong question in the first place.

Leave administration is another area where experience matters. Paid Leave Oregon, OFLA, FMLA, sick time, pregnancy disability, bereavement leave, and employer PTO can overlap in confusing ways. Employees often describe life events, not legal categories. They say, “My child is sick,” “I need surgery,” or “My parent needs help.” HR has to translate that into the correct leave pathway without delaying rights or giving inaccurate promises. A practical leave checklist, updated templates, and consistent communication can save everyone from confusion.

Construction employers face a different kind of reality check. SB 426 means wage compliance cannot stop at the first-tier contract. Owners and general contractors should treat payroll visibility as part of project risk management. That may feel like extra paperwork, but it is less painful than discovering unpaid wage exposure after the work is done and the subcontractor has vanished like a magician with a hard hat.

Public employers should also take these updates seriously. ASL pay differentials, Oregon National Guard hiring preferences, and public-sector overpayment deductions are technical, but technical rules are exactly where accidental violations happen. A small policy update now can prevent a messy grievance later.

The best practical approach is to build a 2025–2026 Oregon employment law calendar. Put minimum wage changes, January 1 policy updates, leave-review dates, payroll notice reviews, OSHA seasonal training, and handbook updates on one shared timeline. Compliance becomes much easier when it is scheduled like payroll, not remembered like where you put your sunglasses.

Finally, employers should communicate changes in normal human language. Employees do not need a legal dissertation every time a policy changes. They need clear answers: what changed, when it starts, who it affects, and whom to contact with questions. Good communication is not just friendly; it is a risk-control tool. In Oregon’s fast-moving employment law environment, clarity is the cheapest compliance strategy available.

Conclusion

Oregon employment law updates for 2025–2026 require employers to pay closer attention to transparency, leave coordination, hiring practices, wage statements, construction wage liability, public-sector rules, and workplace safety. The updates are broad, but they share one practical message: document clearly, explain early, train consistently, and do not wait until a complaint appears to learn what the law requires.

For employees, these changes offer more visibility into pay, broader sick time use, stronger protections in certain industries, and new rules around leave and labor disputes. For employers, they create a clear opportunity to modernize policies, reduce confusion, and build a workplace where compliance feels less like a fire drill and more like good management.

Note: This article is for informational publishing purposes and is not legal advice. Employers and employees should consult qualified counsel or official state guidance for advice about specific situations.