What employers should know in preparation for SB 906.
Starting January 1, 2026, Oregon employers hiring employees must comply with new disclosure requirements around employee compensation. SB 906, which goes into effect on January 1, will require Oregon employers to provide a written explanation of earnings and deductions, at the time of hire, to new employees.
Background
Currently, Oregon employers are required to provide employees with a statement, at the time of payment, detailing the amount paid, date of payment, dates of work, rate or rates of pay, deductions, and other information enumerated in ORS 652.610. Most (but not all) Oregon employers are not expressly subject to any other notice requirements for employee wages or pay periods.
SB 906 amends ORS 652.610 and adds additional notice requirements at the time of hire. Employers have some flexibility for how the notice is delivered, but the content of the notice must comply with the statute.
Notice Requirements
The notice to new employees must be given at the time of hire, and must include:
- The employer’s established regular pay period;
- A comprehensive list of:
- All types of pay rates employees may be eligible for, including hourly pay, salary pay, shift differentials, piece-rate pay, and commission-based pay;
- All benefit deductions and contributions; and
- Every type of deduction that may apply;
- The purpose of any deductions that may be made during a regular pay period;
- Any allowances claimed as part of minimum wage;
- Employer-provided benefits that may appear on itemized statements as contributions and deductions; and
- All payroll codes used for pay rates and deductions, along with a detailed description or definition of each code.
The information must be sufficiently detailed to explain pay rates and deduction codes but need not be written in complete sentences. In addition to giving notice to new hires, employers must also review and update the above information by January 1 of each subsequent year.
Options for Implementation
Employers are free to write their own notice and give a copy directly to each employee at the time of hire. While employers essentially have one shot at compliance for each new hire, employers have options for how to best deliver the notice. Rather than hand-delivering notice directly to each new employee, for example, employers may satisfy the disclosure requirements by making the notice 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.
Additionally, Oregon’s Bureau of Labor and Industries (BOLI) has developed a model template that includes commonly used statewide deductions, which employers may use to create their own notices. BOLI’s model template can be found here. Be aware, however, that BOLI’s model template may not include every deduction or pay code used in your business.
Next Steps
Like many Oregon laws regulating the employer–employee relationship, violations of SB 906 can result in penalties. Currently, SB 906 authorizes BOLI to issue penalties of up to $500 against any person who violates ORS 652.610. But the new law does not give employees a private right of action.
Employers should begin preparations for SB 906 by auditing current payroll practices and drafting a notice to provide employees hired after January 1, 2026. Employers also should not overlook yearly audit requirements. Consider scheduling SB 906 reviews in November of each year to ensure time to review and update your notice before January 1.
