Blog Details

Most people look at a pay stub as “proof of pay.” Oregon treats it as an itemized pay statement, and the rules get specific fast: pay period dates, pay basis, rates, hours, deductions, and more.

Starting January 1, 2026, Oregon SB 906 adds a new step for employers: new hires must get a written explanation of earnings and deductions so they can understand what the pay statement is showing. Employers also need to review and update that explanation by January 1 each year. (Source:- oregon.gov)

Compliance note: This is informational only, not legal advice.

Quick Answer (What SB 906 means in 2026)

If you hire in Oregon, SB 906 means you should give new hires a plain-language “decoder” for your pay stub that covers:

• Your regular pay period schedule
• All pay rates the person might see (hourly, salary, shift differential, commission, piece rate, and similar)
• Benefit deductions and employer contributions that may appear on the pay statement
• Every deduction type that might show up, plus the purpose of each
• Any minimum-wage allowances you claim (if you use them)
• Every payroll code used for contributions and deductions, with a clear definition for each code (Source:- oregon.gov)

1) Who SB 906 applies to

SB 906 is a new-hire notice requirement for Oregon employers. The Oregon BOLI guidance describes it as applying to all employers for new hires and calls out the annual review/update expectation.

If you want to keep things simple internally: treat it as part of onboarding for anyone you add to payroll in Oregon in 2026 and beyond.

2) When you should give the explanation

Most employer guidance describes the timing as at the time of hire, as part of onboarding materials. (Source:- Seyfarth Shaw )

A practical way to do it:

• Put it in your onboarding packet (digital or paper)
• Also store it in one place employees can find later (HR portal, shared link, handbook)

3) How you can deliver the notice (what formats work)

BOLI notes several acceptable delivery paths, as long as it is easy for employees to access:

• Electronic delivery
• Posting it in a conspicuous place at the worksite
• Handing it to the employee on paper
• Another method that keeps it in a location employees can access easily
• Including it in the employee handbook

Tip: Even if you post it, it still helps to hand it to the new hire during onboarding so there is no confusion later.

4) What the explanation must cover 

BOLI’s summary is the cleanest checklist to follow. Your explanation should cover:

A) Your regular pay period

Example:

• “Pay period runs Sunday–Saturday. Pay date is the following Friday.”

B) Pay rates the employee may see

Examples you can list (only keep what you actually use):

• Hourly rate
• Salary (and what it means per pay period)
• Overtime rate(s)
• Shift differential
• Bonus
• Commission
• Piece rate

C) Benefit contributions and deductions

Examples:

• Medical, dental, vision
• HSA/FSA
• Retirement plan (employee deferral + employer match, if shown)
• Employer-paid benefits that appear on the pay statement

D) Every deduction type that might apply + the purpose

Examples:

• Federal income tax withholding
• Social Security and Medicare
• State withholding (if applicable)
• Garnishments
• Union dues (if applicable)
• Benefit premiums

E) Minimum wage allowances (if you claim any)

Examples BOLI lists in the pay statement context can involve lodging/meals/services for private benefit. Only mention what you actually use. (Source:- oregon.gov)

F) Payroll codes: definitions for each code

This is the piece many employers are missing. SB 906 expects a code list with definitions employees can read.

5) A quick refresher: what Oregon itemized pay statements already show

Oregon already expects an itemized statement with each wage payment, and it spells out the fields (dates, names, employer identifiers, rates and basis, gross/net, deductions, hours and overtime details for non-exempt workers, piece-rate details when used).

If you provide pay stubs electronically, Oregon rules point to employee agreement and the ability to print or store the statement when received. (Source:-   OregonLaws)

6) Copy/paste template: SB 906 “Pay Stub Explanation Notice”

Use this as your starting text. Replace bracketed items with your details.

Pay period and pay date

• Regular pay period: [Example: Sunday–Saturday]
• Pay date: [Example: Following Friday]
• How pay shows on the statement: Pay period dates appear near the top. The pay date is the date wages are issued.

Pay types you may see on your pay statement

• REG (Regular): Hours paid at your standard hourly rate
• OT (Overtime): Hours paid at your overtime rate, when applicable
• DT (Double time): [Use only if your payroll uses it]
• SAL (Salary): Salary amount shown per pay period
• BON (Bonus): One-time bonus payment
• COM (Commission): Commission payment tied to sales or goals
• SHIFT (Shift differential): Extra pay for certain shifts
• PTO (Paid time off): Paid leave hours paid

Deductions and withholdings (what they mean)

• FIT: Federal income tax withholding
• SST / SS: Social Security tax withholding
• MED: Medicare tax withholding
• OR-WH: Oregon withholding (if applicable to your setup)
• 401K: Retirement plan contribution (employee)
• 401K-M: Employer match (if shown on your statement)
• MED-EE: Medical premium (employee portion)
• DEN-EE: Dental premium (employee portion)
• VIS-EE: Vision premium (employee portion)
• GARN: Garnishment (court/agency order)
• DUES: Union dues (if applicable)

Employer-provided benefits that may appear as contributions

• MED-ER: Employer-paid medical contribution (if shown)
• RET-ER: Employer retirement contribution (if shown)

Allowances claimed as part of minimum wage (only if you use this)

• [Allowance name/code]: [What it is and when it applies]

Where to ask questions

• Payroll contact: [Name / email / phone]
• HR contact: [Name / email / phone]

Note: Ogletree notes the explanation can be detailed without being written as full sentences, so a clean code list like the above can work well if it is readable.

7) “Payroll code dictionary” table 

If you want a format you can update once a year, use a table like this:

Code	Plain-English meaning	Shows as	When it appears
REG	Regular hours paid	Earnings	Each pay period if hourly
OT	Overtime hours paid	Earnings	When overtime occurs
MED-EE	Employee medical premium	Deduction	When enrolled in medical plan
401K	Employee retirement deferral	Deduction	When enrolled in plan
401K-M	Employer match	Employer contribution	When match is funded/shown

Keep it tight. Employees do not need payroll system jargon. They need “what is this line and why is it here.”

8) SB 906 checklist 

Use this as your internal runbook:

1. List every earning type your payroll can produce (regular, OT, salary, bonus, commission, differentials, PTO).
2. List every deduction and employer contribution that can appear on a pay statement.
3. Export your current payroll codes from your payroll system.
4. Write a one-line definition for each code.
5. Add your pay period schedule and pay date pattern.
6. Add your payroll/HR contact path for questions.
7. Decide how you will deliver it (onboarding packet + a stable “always available” location).

Set a calendar reminder to review it before January 1 each year.
(Source:- oregon.gov)

8. Train whoever onboards new hires so it is not missed.
9. Keep a copy in the employee file or onboarding checklist as proof it was provided.

If you want a clean pay stub that is easy to print and save, you can create one here: epaystub

9) FAQs 

Does SB 906 change what has to be on the pay stub itself?

It is about the explanation you give to new hires, not a new pay-stub layout. Oregon already lists itemized statement fields under ORS 652.610 and related rules.

Can I give the explanation electronically?

BOLI says you can provide the notice electronically (and also by posting or paper), as long as it is easy for employees to access. (Source:- oregon.gov)

Do electronic pay stubs count in Oregon?

Oregon law and rules describe electronic statements in terms of employee agreement and the ability to print or store the statement when received. (Source:-   OregonLaws)

Do I have to update the notice every year?

BOLI states employers are expected to review and update the information by January 1 of each year.

(Source:- oregon.gov)

10) Optional: add a one-page “employee quick guide” (helps reduce questions)

If you want fewer payroll tickets, add a one-page sheet that says:

• Where to find pay period dates
• Where to find gross vs net
• Where deductions show
• What “YTD” lines mean
• Who to contact for questions

This is not required by SB 906, but it fits the purpose of the law: fewer surprises and fewer misunderstandings.

Read more:-

• ePaystubs generator for clear payroll records
• Check Stub for Self Employed: IRS Compliant Guide
• Looking for a Paystub Generator? Here is Why ePaystubs Makes the Process Simple
• How to Void Check Safely for Direct Deposit, Bills or Fixed Mistakes
• How to Tell a Real Pay Stub from a Fake One (2026 Verification Checklist)
• Pay Stub Requirements by State (2026) + Chart & Checklist