WeVote
Log In

Bill

Bill

SB 968

Relating to deductions from employee wages.

2025 Regular Session Introduced by Kayse Jama and 4 co-sponsors

SB 968 restricts employer wage deductions in Oregon, effective January 1, 2026, protecting worker compensation from non-mandatory withholdings.

Effective date, January 1, 2026.
0
WeVote Research Nonpartisan
Bill Summary · SB 968

Legislative bill overview

SB 968 modifies Oregon law governing what employers can deduct from employee wages. The bill became effective January 1, 2026, after being signed into law in July 2025. The specific provisions restrict or regulate certain wage deductions that employers previously could make.

Why is this important

Wage deductions directly affect worker take-home pay and financial security. Changes to deduction rules can significantly impact employees across Oregon, potentially protecting them from certain employer practices while also affecting employer payroll operations. This type of legislation balances employer flexibility with worker protections.

Potential points of contention

  • Scope of prohibited deductions: The bill likely restricts deductions beyond court-ordered payments (garnishments) and taxes, but stakeholders may disagree on which deductions should be permissible (uniforms, tools, equipment, overpayments, etc.)
  • Small business compliance burden: Employers, particularly small businesses, may face increased costs updating payroll systems and training staff on new deduction rules
  • Definition ambiguities: Questions may arise about how deductions are categorized and whether certain common practices (like health insurance premiums or retirement contributions) are affected by the new restrictions

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.