Business Lawyers Blog
The Oregon Legislature has enacted several new labor and employment laws taking effect in 2026. Employers should stay alert to ensure ongoing compliance with these changes. Below is an overview of some of the most significant new employment laws and how they may impact businesses. Because these laws can create potential liability for employers, Structure Law Group’s Portland, Oregon employment lawyers are available to advise businesses, answer questions, and provide guidance if your company wants to stay compliant or is facing employment-related disputes or litigation.
Wage Transparency Law: SB 906
In May, Oregon enacted SB 906, a payroll transparency law that takes effect on January 1, 2026. Under this law, employers must provide new hires with clear, written information explaining how compensation is calculated, what deductions may apply, and how to interpret their paystubs.
The Bureau of Labor and Industries has provided a helpful template in both English and Spanish. Employers may provide the required payroll information in any easily accessible format, including a link to a website, a document posted in a central location, a shared electronic file, or materials distributed by email or as part of the onboarding process.
Liability for Unpaid Construction Wages: SB 426
Starting January 1, 2026, property owners and contractors can be held jointly liable for unpaid wages owed to workers not covered by a collective bargaining or union contract. These contracts usually include a process for collecting unpaid wages, but the new law provides a powerful mechanism for unrepresented workers to sue in court.
However, the law does not apply if the work was performed on the owner’s principal residence or any property with no more than five residential or commercial units in a single tract.
This law poses risks to companies that use contractors. An unrepresented worker is no longer limited to suing the contractor or subcontractor who hired them. Property owners could also be held legally responsible.
Changes to Sick Time: SB 1108
Oregon’s paid sick leave law will expand in 2026 under Senate Bill 1108. Beginning January 1, 2026, employees may use accrued sick time for approved blood donation activities, provided the Red Cross or AABB authorizes the donation program. The Legislature also clarified how paid sick leave interacts with Paid Leave Oregon (PLO), confirming that employees may use sick time for bonding and certain family health needs. In addition, some exemptions for unionized workforces have been removed, making coverage more consistent across industries.
Employers should review their sick leave policies and handbooks to ensure they reflect these upcoming changes.
Striking Workers and Unemployment Insurance Benefits: SB 916
Effective January 1, 2026, Oregon’s SB 916 allows employees who are on strike to receive unemployment insurance (UI) benefits for up to 10 weeks. This law eliminates the prior disqualification for benefits related to labor disputes and may affect employer labor strategies and dispute resolution planning.
Employers should note that a waiting period applies, benefits are limited to standard weekly amounts, and employees may be required to repay benefits if they later receive back pay. This policy change makes Oregon one of the few states to extend UI benefits to striking workers, potentially shifting the balance in labor negotiations. Both public and private employees are eligible for unemployment benefits during a strike.
Contact an Oregon Employment Law Attorney to Learn More
The new Oregon employment laws taking effect in 2026 introduce meaningful changes that may significantly affect employer compliance, risk exposure, and workforce management.
Employers are encouraged to evaluate their payroll practices, contractor relationships, employee handbooks, and labor strategies in the new year. If you have questions about how these new laws apply to your organization or if you are facing an employment-related dispute, contact Structure Law Group at (503) 388-3000 to schedule a consultation and ensure your business is prepared for 2026 and beyond.