BOP NEWSLETTER • November 2025
Wage Deduction Transparency Law Enacted for Oregon Employers
Oregon law requires employers to provide employees with itemized wage statements on each regular payday. These statements must include key details such as:
- The date of payment and the pay period covered
- The employee’s name
- The employer’s name and contact information
- Pay rates
- Gross and net wages
- Deductions
- Total hours worked
Employers may issue wage statements electronically if the employee consents.
Employers may not withhold or deduct wages unless the deduction is:
- Required by law
- Voluntarily authorized in writing by the employee for the employee’s benefit
- Authorized under a collective bargaining agreement or specific statute
- Made upon termination of employment for repayment of a loan, under limited conditions
Violations of Oregon’s wage statutes, including unlawful deductions, may result in civil penalties of up to $1,000 per violation.
New Requirements Effective January 1, 2026 – Senate Bill 906
Beginning January 1, 2026, Oregon employers will be required to provide new employees—at the time of hire—with a written explanation of earnings and deductions that appear on their itemized wage statements. This explanation must include general information about:
- The employer’s established regular pay period.
- A comprehensive list of:
- All types of pay rates employees may be eligible for (e.g., hourly, salary, shift differentials, piece rate, commissions).
- All benefit deductions and contributions.
- Every type of deduction that may apply.
- The purpose of any deductions made during a regular pay period.
- Any allowances claimed as part of the minimum wage.
- Employer-provided benefits that may appear on the wage statement as contributions or deductions.
- All payroll codes used for pay rates and deductions, with a clear description or definition of each code.
The Oregon Bureau of Labor and Industries (BOLI) will publish a model written guidance document that employers can use or adapt to meet these requirements.
BOLI may assess civil penalties of up to $500 per violation for noncompliance.