Oregon’s New Requirements for Pay Stubs, Time Records and Wage Notices

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All Employers with Oregon Employees

EFFECTIVE

January 1, 2017

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Oregon passed a bill designed to increase employer transparency in wages and payroll records.  Effective January 1, 2017, SB 1857 provides new regulations for: (1) the type of information employers must include on itemized wage statements; (2) when employees can view their payroll records; and (3) prevailing wage rates paid to employees working on public works projects.  The new regulation also provides the Oregon Bureau of Labor and Industries (“BOLI”) with increased enforcement funding derived from the Wage Security Fund to investigate and enforce wage claims.

 

Itemized Wage Statements Requirements

Oregon employers must include the below information on itemized wage statements or pay stubs.  If the employer wishes to provide electronic wage statements, employees must first expressly agree to receive wage statements electronically, and the employer must retain the ability to print or store the statement at the time of employee’s receipt.

  • Employee’s name;
  • Employer’s name and business registry number/business identification number;
  • Employer’s address and telephone number;
  • Date of payment;
  • Dates of work covered by the payment;
  • The rate(s) of pay;
  • Gross and net wages;
  • Amount and purpose of each deduction made during the pay period the payment covers;
  • Allowances claimed as part of minimum wage (if applicable);
  • For non-exempt employees, the regular hourly rate(s) of pay, the overtime rate(s) of pay, the number of regular and overtime hours worked, and the total amount of pay for those regular and overtime hours; and
  • For piece rate employees, the applicable piece rate(s) of pay, number of pieces completed at each rate, and the total pay for each rate.

 

New Requirements for Payroll Records

Oregon employers will now be required to provide a certified copy of time and pay records within 45 days of an employee or former employee’s request.  Payroll records should be retained for at least three years following separation of employment.

 

Amendments to Public Works Prevailing Wage Provisions

Lastly, the bill imposes new regulations on the prevailing wage paid by public works contractors, subcontractors and their agents.  Such entities are prohibited from:

  • Failing to pay employees the prevailing wage rate, or entering into employment agreements that pay the employee less than the prevailing wage rate;
  • Reducing the wage rate of an employee for work that is not subject to the prevailing rate; or
  • Withholding, deducting or diverting portions of an employee’s wage, except as regulated by law;
  • Otherwise depriving an employee of their right to prevailing wages in an amount that equals or exceeds 25% of the wages due, or $1,000 in a single pay period, whichever is greater.

The amendment indicates that violation of these new regulations could result in felony charges punishable by a maximum 5-year prison term and/or a maximum fine of $125,000.

Action Items:

  1. Read the full text of SB 1857 here.
  2. Review labor budgets and record inspection and record keeping procedures for compliance with the new regulations.

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.

© 2016 ManagEase, Incorporated.

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