New Year Brings New Laws for Oregon Employers

Key Takeaways

• To comply with laws taking effect in 2026, employers will need to provide additional payroll information to employees and adapt to new standards for striking workers’ benefits.
• New laws that have already taken effect pertain to: requirements surrounding paid leave; timelines for employees filing discrimination complaints; the newly created Employer Assistance Division; the lawfulness of noncompete agreements in the healthcare industry; rest breaks for nursing agricultural workers; and restrictions on the demographic information that employers can request during the hiring process.

With 2026 rapidly approaching, employers should review the 2025 legislative changes in Oregon employment laws. This Update discusses changes effective in 2026 and reminds employers of some of the laws that have already become effective. Employers are encouraged to consult experienced counsel regarding these updates. 

Coming in 2026

New Requirements for Employee Payroll Information

Effective: January 1, 2026 | SB 906

Summary: To make it easier for employees to decipher their paystubs, Oregon Senate Bill 906 requires employers to provide a “cheat sheet” for the pay codes often seen on payroll documents received by employees. In addition, employers must provide other basic employer payroll information, including the pay period used, all types of pay rates employees may receive, all benefit deductions and contributions, and other payroll deductions and their purposes. 

The Oregon Bureau of Labor and Industries (BOLI) has provided an example of the required disclosure, available for download on its Paycheck Deductions page. This disclosure document must be available to employees on January 1, 2026, and updated annually. It can be distributed by manually posting it in the workplace or electronically, such as in a website, shared file, or delivery by email. 

Action item: Create required informational summary document and post or distribute by January 1, 2026. 

Unemployment Benefits for Striking Workers

Effective: January 1, 2026 | SB 916

Summary: SB 916 repeals Oregon’s previous prohibition on unemployment insurance benefits for striking workers. While other states’ legislation extends unemployment insurance benefits to striking workers in the private sector only, SB 916 takes the unprecedented step of extending them to striking workers in the private and public sectors.

SB 916 provides that striking workers who are otherwise eligible for unemployment insurance benefits are not disqualified for any week that the individual is unemployed due to a strike or lockout. Striking workers are required to wait two weeks before qualifying for benefits, which are capped at 10 weeks. The employee is required to repay the benefits if they are overpaid due to later receipt of back pay. School districts are required to deduct unemployment insurance benefits charged to them from employees’ future compensation for the applicable weeks during a labor dispute. We discussed this change in greater detail in a previous Update.

Action item: Make appropriate personnel aware of new benefits requirements in the event of a strike. Review collective bargaining goals and plans, along with strike preparation plans, in light of the availability of unemployment benefits.

Already in Effect

Oregon Paid Leave Changes

Effective: September 26, 2025 | SB 0069, SB 1108

Summary: Oregon Paid Sick Leave provides for accrual of sick leave, often paid sick leave, while Paid Leave Oregon provides for wage payment for designated family leave issues. Employees may now use their accrued Oregon Paid Sick Leave for any reason available under the Paid Leave Oregon program. In addition, employees may now use Oregon Paid Sick Leave to donate blood. 

Employers are now authorized to request a medical return-to-work certification from the employee’s health provider. In addition, Oregon employees who appeal for denial of an Oregon Paid Leave claim may now file a charge with BOLI about the claim while the appeal is pending. 

Action item: Review and update job applications, postings, descriptions, hiring procedures, handbooks, and policies for compliance.

Changes to Time Limits for Filing Complaints of Discrimination

Effective: June 24, 2025 | HB 2957

Summary: The time to file a lawsuit after first filing a discrimination complaint with BOLI has been extended. Employees generally have 5 years from the date of the claimed violation to file a lawsuit. This time may be modified if the employee chooses to first file a charge with BOLI. The time to file a lawsuit for employees who first file a charge with BOLI was 90 days after the charge was withdrawn or a decision was made by BOLI. Now, if there is a decision finding substantial evidence of a violation, or no investigation is completed, the employee has the greater of 90 days from the issuance of a notice by BOLI or 5 years from the date of the alleged violation to file a lawsuit. If BOLI issues a notice that there is not substantial evidence of a violation, the time to file a lawsuit depends on how much time is left on the 5-year statute of limitations. If there is at least one year remaining, the employee has one year from the date of the finding to file a lawsuit. If there is less than one year but more than 90 days remaining under the 5-year statutory limitation, the employee has the remaining time under the statutory limitation to file a lawsuit. If there are less than 90 days remaining under the 5-year limitation, the employee has 90 days to file a lawsuit. 

In addition, it is now an unlawful employment practice for an employer to attempt to shorten the BOLI time limits by agreement with an employee. 

Action item: Make appropriate personnel aware of new time limits and review record retention policies affected by limits. Review employment policies and agreements for language attempting to shorten time limits for claims under BOLI jurisdiction. 

New Employer Assistance Division and Confidentiality of Certain BOLI Communications 

Effective: September 26, 2025 | HB 2248

Summary: While BOLI has always provided employer assistance, HB 2248 codifies the program and creates an Employer Assistance Division (the Division). The bill protects employers working with the Division from use or disclosure of their communication as evidence in any BOLI proceeding. An employer may request disclosure in a proceeding where it wants to show it acted in good faith and in reliance on communications with BOLI. The bill also authorizes the Division to issue and publish advisory opinions on the interpretation and application of laws over which BOLI has enforcement authority. 

The bill further provides that communications during BOLI’s alternative dispute resolution process and during any settlement process are confidential and may not, except in limited circumstances, be used in any court or administrative hearing. 

Action item: Determine how best to work with the new Division to understand and interpret laws administered by BOLI.

Unlawfulness of Noncompetition Agreements in the Healthcare Industry

Effective: June 9, 2025; January 1, 2029 | SB 951, HB 3410

Summary: SB 951 and HB 3410 make most noncompetition agreements between licensed medical professionals and their employers void and unenforceable. This ban went into effect on June 9, 2025, and applies both prospectively and retroactively to existing employment contracts. Despite the ban, there are limited exceptions when noncompetition clauses are allowed, including:

• When a licensed medical professional owns at least 1.5% equity in the employer entity
• When the employer made a “recruitment investment,” such as a signing bonus or relocation allocation of greater than 20% of the licensed medical professional’s annual salary
• If the licensed medical professional does not provide direct clinical care to patients and instead works in an administrative role 

These bills also place limitations on nondisclosure and nondisparagement agreements between licensed medical professionals and employers when not directly related to protecting the employer’s proprietary or trade secret information.

SB 951 and HB 3410 also place restrictions on the ability of management services organizations to own or control a majority interest in professional medical entities. The ownership restrictions go into effect on January 1, 2029. 

Action item: Review and amend contracts with licensed medical professionals to ensure compliance with new limits on noncompetition, nondisclosure, and nondisparagement clauses. 

Agricultural Workers’ Right to Unpaid Rest Periods To Express Milk

Effective: May 7, 2025 | HB 2541 

Summary: Employers of professional, administrative, or executive individuals are required to provide reasonable unpaid rest periods and private locations for employees to express breast milk for children up to 18 months old. HB 2541 expands coverage to include agricultural workers, ensuring they receive the same workplace accommodations for expressing milk as other employees. The bill also provides an exception for employers with fewer than 10 employees if providing such rest periods would impose an undue hardship on the operation of the business. 

Action item: Review policies and procedures and make appropriate personnel aware of new rest period requirements.

Additional Restrictions on Job Applicants’ Demographics

Effective: September 26, 2025 | HB 3187

Summary: The bill prohibits employers from requesting or requiring an applicant’s age, date of birth, or date of graduation from any educational institution prior to completing an initial interview or, if there is no initial interview, prior to making a conditional offer of employment. The bill provides two exceptions. The employer may request such information when: (1) the employer needs the information to comply with an applicable law or (2) the information is required to affirm that the applicant meets bona fide occupational qualifications.

Action item: Review and update job applications, postings, descriptions, hiring procedures, handbooks, and policies for compliance.

Property Owners Liable for Unpaid Wages of Construction Workers

Effective: January 1, 2026 | SB 426

Summary: This bill makes property owners jointly and severally liable for the unpaid wages of nonunionized construction workers performing work for the property owner’s direct contractors and subcontractors. This bill does not extend liability to construction work relating to real property that is used as the owner’s principal residence or to properties with five or fewer residential or commercial units. This bill creates a rebuttable presumption that, in any action for unpaid wages, a person performing labor on a construction project is an employee rather than an independent contractor. 

Action item: Property owners should review construction contracts and consider provisions that reduce the risk, such as proof of payment; the ability to withhold payment; and shifting liability for payment, defense, and expenses.