Payroll law doesn't sit still - and neither do I. This page is where I share updates that actually matter to small Oregon employers: wage changes, new filing requirements, and anything else that could affect your payroll or put you at risk of a penalty.
I keep up with this so you don't have to.
1. Oregon Minimum Wage Increased July 1, 2026
BOLI Commissioner Christina Stephenson has announced new minimum wage rates that are now in effect as of July 1, 2026, driven by a 3.3% CPI increase from March 2025 to March 2026. The new rates:
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Portland Metro (within the urban growth boundary): $16.80/hour
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Standard counties including Josephine, Jackson, Lane, and others: $15.55/hour
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Non-urban rural counties: $14.55/hour
That's a $0.50/hour increase across all three tiers. If you have hourly employees at or near minimum wage, you need to update their rates now.
Source: BOLI - Oregon Minimum Wage
2. New Oregon Hire Disclosure Law Is Already in Effect - SB 906
Effective January 1, 2026, Senate Bill 906 requires Oregon employers to provide employees at the time of hire a written explanation covering the employer's regular pay period, all types of pay rates the employee may be eligible for, all benefit deductions and contributions, and every type of deduction that may apply.
This applies to all Oregon employers with no minimum employee threshold and no small business exemption. BOLI may assess civil penalties of up to $500 per violation.
BOLI has published a template notice in both English and Spanish that employers may refer to and adapt to meet these requirements.
If you hired anyone after January 1, 2026 without providing this disclosure, you have a compliance gap that needs to be corrected now.
Source: BOLI - SB 906 Template Notice
3. The One Big Beautiful Bill Act Changed W-2 Reporting for 2026
The One Big Beautiful Bill Act was signed into law on July 4, 2025, and introduced several provisions that directly affect how employers handle payroll, some retroactive to January 1, 2025, with new reporting requirements taking effect in 2026.
The biggest payroll impact: the IRS introduced three new Box 12 codes on the 2026 W-2 - Code TP for total qualified tips reported to the employer, Code TT for the total qualified overtime premium (the premium half of time-and-a-half pay), and Code TA for employer contributions to "Trump Accounts" for eligible children. Box 14 has also been split into 14a and 14b.
Payroll systems need to separately track the premium portion of overtime pay - specifically the extra half above the regular rate - as a distinct line item for 2026 W-2 reporting.
This is a significant behind-the-scenes change your payroll processor needs to be handling. If you're a Rogue Payroll Co. client, this is already on our radar.
Source: IRS.gov - OBBBA Guidance | PayrollOrg - OBBBA
4. Social Security Wage Base Increased to $184,500 for 2026
The Social Security Administration announced the 2026 Social Security wage base is $184,500 - up from $176,100 in 2025. This means Social Security tax (6.2% employee, 6.2% employer) applies to wages up to that threshold. Employees and employers both stop paying once an employee hits $184,500 in earnings for the year. For most small businesses with 1-24 employees, this won't be a factor - but if you have any higher-earning salaried staff, it's worth knowing the new ceiling.
Source: SSA.gov - Wage Base Announcement | PayrollOrg
5. 401(k) Contribution Limits Increased for 2026
The 401(k) contribution limit increased to $24,500 for 2026, with higher catch-up contributions available for employees age 50 and older. If you offer a retirement plan and haven't notified employees of the new limit, they may miss the opportunity to adjust their contributions. This is also a plan document update item - worth a quick check with your plan administrator.
Source: IRS.gov - COLA Adjustments