Quick Answer: Effective January 1, 2026, Oregon Senate Bill 906 requires all employers (regardless of size) to provide new hires with a detailed written explanation of their payroll structure. This is not a job posting requirement - it applies post-hire.
What is Required?
SB 906 requires employers to provide comprehensive written payroll information at the time of hire. The notice must include:
- Pay Period: The employer's established pay period schedule.
- Earnings & Deductions: A complete list of all earnings and deductions that apply or may apply.
- Payroll Code Definitions: Clear definitions for all payroll codes used on pay stubs for pay rates and deductions.
- Pay Rates & Benefits: All applicable pay rates and benefit deductions, including employer-provided benefits that may appear on pay stubs.
Who Must Comply?
- All Oregon employers - no minimum employee threshold.
- Applies to new hires at the time of employment.
- Existing employees may request the payroll explanation at any time - employer must respond within 14 days.
Important Distinction: This is NOT a Job Posting Requirement
Unlike California, Colorado, or New York, Oregon does not currently require salary ranges in job postings. SB 906 is a post-hire transparency obligation. However, House Bill 2746 (introduced March 2025) proposes adding a job posting salary disclosure requirement - stay tuned.
Employee Rights Under SB 906
- Free Discussion: Employees have the right to freely discuss salary information and inquire about pay practices without fear of retaliation.
- No Salary History Inquiries: Employers cannot request information about a job applicant's previous compensation before making a job offer that includes a specific pay amount.
- Payroll on Demand: Existing employees can request their payroll explanation at any time.
Penalties for Non-Compliance
Employers who fail to provide the required payroll explanations face civil penalties of up to $500 per violation, assessed by the Oregon Bureau of Labor and Industries (BOLI). BOLI has provided a model template in English and Spanish to assist with compliance.
Check Your Oregon Compliance
Review your hiring workflows and onboarding documentation.
Helpful Resources
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The 2026 Pay Transparency Playbook
A comprehensive guide to navigating changing salary disclosure laws across North America.
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State-by-State Labor Department Links
Direct resources from regional labor boards regarding enforcement protocols.
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The Hidden Costs of Non-Compliance
Understand the shift towards aggressive audits and pay equity litigation in 2026.