Oregon: Legislative Update

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All Employers with Employees in OR

EFFECTIVE

January 1, 2026

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Quick Look

  • SB 1108 allows Oregon employees to use paid sick leave for blood donations connected to a voluntary program approved or accredited by the American Association of Blood Banks or the American Red Cross.
  • SB 906 requires Oregon employers to disclose a written explanation of earnings and deductions shown on itemized statements at the time of hire.
  • SB 426 makes an owner and direct contractor jointly and severally liable for any unpaid wages owed to the unrepresented employees of the direct contractor and subcontractor at any tier.

Discussion

The Oregon state legislature expanded employee protections in several areas. Below are the most notable changes.

 

Expanded Paid Sick Leave

 

SB 1108 allows Oregon employees to use paid sick leave for blood donations connected to a voluntary program approved or accredited by the American Association of Blood Banks or the American Red Cross. Employers will need to update their paid sick leave policies prior to the end of the year.

 

Enhanced Payroll Disclosures

 

SB 906 requires Oregon employers to disclose a written explanation of earnings and deductions shown on itemized statements at the time of hire. The explanation must include:

 

  • The established regular pay period;
  • All types of pay rates that employees may be eligible for, including hourly pay, salary pay, shift differentials, piece-rate pay and commission-based pay;
  • All benefit deductions and contributions;
  • Every type of deduction that may apply;
  • Allowances, if any, claimed as part of minimum wage;
  • Employer-provided benefits that may appear on the 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.

 

Employers can comply by providing a link to a website, posting a physical document in a central location, through a shared electronic file, or delivery by electronic mail. The information must be reviewed and updated by January 1 of each year. The Bureau of Labor and Industries is tasked with developing a model written guidance document that can be customized.

 

Subcontractor Wage Theft

 

SB 426 makes an owner and direct contractor jointly and severally liable for any unpaid wages owed to the unrepresented employees of the direct contractor and subcontractor at any tier. An “unrepresented employee” means an employee of a direct contractor or subcontractor who is not represented by a construction trade labor organization that has established itself or its affiliates as the collective bargaining representative for people performing work on a project, or is not covered by a collective bargaining agreement that contains a grievance procedure and a mechanism for recovering unpaid wages and fringe benefit contributions. Indemnification clauses in construction contracts that attempt to shift liability away from the direct contractor or owner are unenforceable.

 

Before commencing a civil action, the unrepresented employee must send a notice to the owner and direct contractor describing the wage violation and provide 21 calendar days from certified delivery for correction of the violation. To make sure subcontractors are complying with their wage requirements, the direct contractor or owner can request to view the following records:

 

  • Certified payroll reports, that, at a minimum, include sufficient information for the direct contractor to determine whether a subcontractor has paid in full all wages earned by unrepresented employees who performed work on the project as part of the employees’ total

compensation;

  • The name, address and phone number of a contact for the subcontractor;
  • The names of all workers who performed work on the construction project and notation of whether each worker is paid or classified as an employee or independent contractor;
  • The name of any subcontractor with which the first-tier subcontractor contracts;
  • The anticipated contract start date and scheduled duration of work; and
  • An affidavit that attests to whether the subcontractor or any of the subcontractor’s current principals have, within the preceding five years, participated in any civil, administrative, or criminal proceeding involving a violation of any law providing for payment of wages or imposing a criminal penalty for the violation and the outcome of the proceeding, including damages, fees or penalty amounts paid to workers or a government agency, if any.

 

Since there are limited opportunities for direct contractors and owners to avoid liability for their subcontractors’ noncompliance with wage and hour requirements, implementing a compliance system and auditing subcontractors should be a key component of the contractor relationship.

 

Action Items

  1. Update paid sick leave policies.
  2. Draft required wage payment disclosures.
  3. Have appropriate personnel trained on the requirements.
  4. Review construction subcontractor agreements with legal counsel, if applicable.

 

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 ManagEase