The Oregon State Capitol Building.
By Sara M. Dueno and Kana Yoshigi
Oregon’s 2025 legislative session didn’t take it easy on employers. Lawmakers rolled out a fresh batch of rules that will shake up everything from hiring practices to leave policies, pay disclosures, and even construction contracts. Some changes hit as soon as this month, while others arrive in January 2026. To help you stay ahead (and avoid headaches), Dunn Carney’s Employment Team created a quick rundown of the biggest changes and how you’ll want to address them.
HB 3187 — No More Graduation-Year Guessing Games
Effective: September 26, 2025
That seemingly innocuous “So, what year did you graduate?” question could soon land you in hot water. Oregon’s new law prohibits employers from asking about age, birth dates, or graduation years before the interview stage. The only exceptions: where this information is a bona fide job requirement or is needed to comply with legal mandates. For example, a bartender must be 21 years old to serve alcohol, so a restaurant may refuse to hire someone who is underage. Similarly, federal laws require commercial pilots to retire at 65, so airlines may refuse employment to someone who is older.
Employer Action:
- Remove birth date or graduation related fields from applications and recruiting software.
- Train hiring managers to avoid graduation-year or age-related questions.
- Document any reliance on bona fide occupational qualification or legal mandate compliance if age-related disclosure is required.
HB 2248 — BOLI Opens a Help Desk (Sort Of)
Effective: September 26, 2025
BOLI is getting a friendlier face: the new Employer Assistance Division. Think of it as a hotline for advisory opinions and guidance. Better yet, your chats with them are confidential (unless you decide to share) and can shield you from penalties — except for remedies or penalties owed directly to employees — if you rely on their advice in good faith.
One important caveat: BOLI’s guidance is not legal advice. It can be a helpful resource, but it won’t replace the tailored advice you need when the stakes are high.
Employer Action:
- Don’t be shy — ask BOLI for guidance when laws are murky.
- Retain documentation of reliance on BOLI guidance.
- For legal strategy and compliance planning, connect with one of our employment law team members.
HB 2800 — PEOs Need a License to Play
Effective: September 28, 2025
Oregon has overhauled how Professional Employer Organizations (PEOs) are regulated. The law modernizes how PEOs operate in the state by clarifying the responsibilities of both PEOs and their client employers, and by establishing a comprehensive framework for oversight and regulation.
The biggest change: all PEOs operating in Oregon must now be licensed by Department of Consumer and Business Services (DCBS). Operating without a license is prohibited. The licensing process requires PEOs to demonstrate financial stability, comply with state regulations, and operate with transparency before taking on key employer responsibilities such as payroll, benefits, and tax compliance. Translation: if you’re using or considering a PEO, make sure they’re playing by the new licensing rules.
Other key provisions include:
- Workers’ comp history access: Licensed PEOs may review a client’s workplace injury history records maintained by the State Accident Insurance Fund (SAIF). This allows PEOs to apply accurate risk assessments when determining workers’ compensation coverage obligations and pricing.
- Clearer roles: The law distinguishes PEOs from temporary service providers (i.e., staffing agencies), a distinction that carries significant liability implications. PEOs assume specific employer responsibilities — such as payroll, tax compliance, and often workers’ compensation coverage — for covered employees. Staffing agencies, by contrast, supply workers for short-term needs without taking on employer obligations.
- Stronger oversight: DCBS has expanded authority to monitor and enforce compliance, increasing transparency for businesses and protections for employees.
Employer Action:
- Confirm your PEO is (or will be) licensed in Oregon.
- Review current PEO relationships to ensure compliance with the new licensing, reporting, and disclosure obligations.
- Reach out to our employment law team for compliance planning.
SB 906 — Payroll Transparency 101
Effective: January 1, 2026
Starting in 2026, employers must give every new hire a clear “decoder guide” to their earnings and deductions — basically, a roadmap to what shows up on their pay stub and why. You can hand it out on paper, post it in the breakroom, or share it electronically (even just a link to your intranet). The catch? You also have to review and refresh the info by January 1 every year.
And it’s not just a quick one-pager. The disclosure has to cover:
- Your regular pay periods.
- Every pay type an employee might earn (hourly, salary, shift differentials, piece rates, commissions, etc.).
- All benefit contributions and deductions.
- Every type of deduction and what it’s for.
- Any allowances (like meals or lodging) that count toward minimum wage.
- Employer-provided benefits shown as contributions/deductions.
- Payroll codes — plus a description or definition for each one.
Yes, it’s a lot — but BOLI has created a template in English and Spanish you can adapt to avoid reinventing the wheel.
Employer Action:
- Adopt BOLI’s template (or build your own detailed version).
- Make sure all the required elements are covered and easy to understand.
- Refresh the disclosure annually by January 1.
SB 1108 — Sick Time for Rolling Up Your Sleeve
Effective: January 1, 2026
Employees can now use sick time to donate blood through accredited programs. Good news for the Red Cross, and another reason to update your policies.
Employer Action:
- Add “blood donation” to the list of sick time uses.
SB 426 — Construction Pay Gets Real
Effective: January 1, 2026
Property owners, direct contractors and subcontractors, take note: you can be held on the hook for unpaid wages owed to unrepresented workers — meaning construction employees who are not covered by a labor union or a collective bargaining agreement that already provides a process for recovering unpaid wages and benefits. Liability covers damages, penalties, and attorneys’ fees.
Subcontractors now have disclosure obligations, and while an owner or direct contractor can try to recover from a subcontractor for amounts paid, any contract that tries to waive, release, or indemnify away that liability is invalid. The law also carves out some exceptions — it doesn’t apply to work performed on an owner’s principal residence or on real property with five or fewer residential or commercial units on a single tract.
Employer Action:
- Tighten subcontract agreements.
- Create systems to track and enforce wage compliance.
For more information regarding this topic, or any employment-related legal issues, please contact a member of Dunn Carney’s Employment Law Team.
©2025 Dunn Carney LLP. This material is provided for informational purposes only. It is not intended to constitute legal advice nor does it create a client-lawyer relationship between Dunn Carney LLP and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material.
