10/21/25 Preparing for Oregon’s 2026 Pay Statement Changes
October 21, 2025
By Abby Fitts
As the new year approaches, employers should take note of legislative changes enacted during the 2025 session. Among the updates we covered in this August E-Alert highlighting major changes for employers, Oregon’s new pay statement requirement is set to go into effect on January 1, 2026.
Although Oregon employers are already required under ORS 652.610 to provide itemized pay statements showing the pay rate, basis of pay, gross and net wages, itemized deductions, and for non-exempt employees, regular and overtime hours worked with corresponding pay, the amended law expands these obligations.
In addition to providing the above listed categories of information with each paycheck, employers must now provide the following information in writing to employees at time of hire to help employees understand the contents of the itemized statements they will receive each pay period:
General information about the employer’s established regular pay periods;
The types of pay rates for which the employee may be eligible (e.g., hourly, salary, shift differential, piece rate, or commission-based pay);
All benefit deductions and contributions;
Every type of deduction that may apply;
The purpose of deductions that may be made during a regular pay period;
Allowances claimed as part of minimum wage (if applicable);
Employer-provided benefits as contributions and deductions; and
All payroll codes for contributions and deductions with a description or definition of each code.
In addition to providing the required information to every new hire, employers must now review and update that information by January 1 of each year for current employees. Employers may satisfy this obligation by making the information accessible to employees—such as through a digital link, a physical posting in a common area, or other means like email.
Helpfully, BOLI has created a template, available in both English and Spanish, to help employers meet this new requirement. The template illustrates the level of detail BOLI expects employers should provide when explaining payroll codes and other components of the amended law that may have otherwise been unclear. Whether employers choose to use BOLI’s template or develop their own version, they must ensure that all required information is provided to employees to remain in compliance with the new law.
Although the new law does not create a private right of action for employees, BOLI may impose a civil penalty of up to $500 for violations of this new requirement.
Employers should begin preparing now by coordinating with their payroll provider or establishing internal protocols to ensure compliance with the new law. With thoughtful preparation, employers can be well-positioned for full compliance by January 1, 2026.
We are here to help. Please contact Abby Fitts at afitts@barran.com or 503-276-2190, or your regular Barran Liebman attorney for assistance in reviewing your employment compliance.