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Bill

SB 906

Relating to transparency concerning employer deductions from wages.

2025 Regular Session Introduced by Tom Andersen and 6 co-sponsors

SB 906 mandates Oregon employers provide itemized wage deduction documentation to employees before or upon payment, effective January 2026, enhancing payroll transparency and worker protections.

Effective date, January 1, 2026.
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WeVote Research Nonpartisan
Bill Summary · SB 906

Legislative bill overview

SB 906 requires Oregon employers to provide employees with clear, itemized documentation of all wage deductions before or at the time of payment. The bill enhances transparency requirements around payroll deductions, ensuring workers understand exactly what is being withheld from their paychecks and why.

Why is this important

Many workers lack visibility into deductions beyond standard taxes and Social Security, which can include uniform costs, tools, training fees, or disciplinary charges. This transparency measure helps prevent wage theft, allows employees to identify unauthorized or incorrect deductions, and provides a paper trail for dispute resolution—particularly important for low-wage workers who may lack resources to challenge pay discrepancies.

Potential points of contention

  • Administrative burden: Small employers may face compliance costs in updating payroll systems to generate itemized deduction statements for every employee each pay period
  • Scope ambiguity: Unclear whether certain deductions (like 401(k) contributions, health insurance, or voluntary benefits) require the same detailed documentation, potentially creating compliance confusion
  • Enforcement mechanisms: The bill's enforceability and penalties for non-compliance may be insufficient to deter violations or adequately compensate affected workers

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

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