Key Takeaways From Oregon’s 2026 Legislative Session

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Quick Hits

• Oregon enacted HB 4089, which expands criminal penalties for wage theft offenses and increases penalties for hiring unlicensed construction labor contractors or misusing contractor license numbers, with violations ranging from Class A misdemeanors to Class C felonies.
• Several measures (HB 4111, HB 4079, and SB 1570) strengthen protections related to immigration status—restricting its use in civil lawsuits, prohibiting employer retaliation for updating work authorization, requiring schools and healthcare facilities to notify individuals of immigration enforcement activities, and limiting voluntary disclosure of immigration information.
• Oregon enacted laws related to labor standards for minors (HB 4013) and companionship services employee exemptions (SB 1518), as well as a new employer/employee tax to fund the Bureau of Labor and Industries (HB 4027).
• Employers may want to review their policies and practices to ensure compliance with these new laws before they take effect.

Criminal Penalties on Wage Claims (HB 4089)

On March 31, 2026, Oregon Governor Tina Kotek signed House Bill (HB) 4089 into law. HB 4089 modifies the crime of “theft of services” to include partial payments and clarifies that criminal prosecution for the offense does not preclude a civil lawsuit or administrative proceeding. Under the new law, a direct contractor or subcontractor who knowingly hires an unlicensed construction labor contractor commits a Class A misdemeanor for the first offense and a Class C felony for subsequent offenses. The measure also increases the criminal penalty from a Class A misdemeanor to a Class C felony for intentionally using a construction contractor’s license number without authorization, or for using a construction contractor’s license number regardless of authorization with the intent to deceive the public. A Class A misdemeanor conviction is punishable by a maximum of 364 days’ imprisonment, a $6,250 fine, or both. A Class C felony conviction is punishable by a maximum of five years’ imprisonment, a $125,000 fine, or both. HB 4089 also requires Oregon’s Interagency Compliance Network to develop methods for gathering and sharing information related to individuals and entities that commit theft-of-services offenses and that do not comply with laws relating to taxation or employment.

Effective: January 1, 2027

Immigration Retaliation (HB 4111)

Under HB 4111, data about a party’s or a witness’s immigration status may not be used in a civil lawsuit, with limited exceptions where the information is essential to proving the case, used for calculating damages, or related to reinstatement of an employee. When such evidence is offered, the measure requires the offering party to follow specified procedures, including making a confidential motion regarding the evidence to be presented. This new law also makes it an unlawful employment practice for an employer to discriminate or retaliate against an employee for updating, or attempting to update, their personal information based on a lawful change in the employee’s federal employment authorization documentation. Finally, HB 4111 adds immigration status to the classes upon which law enforcement agencies and officers may not “profile” individuals.

Effective: June 5, 2026

Notice of Immigration Activities at Schools and Higher Education Institutions (HB 4079)

HB 4079 requires school districts, public charter schools, and education service districts to develop policies and provide training to notify students, parents, guardians, school employees, and community-based service providers when an immigration authority has entered school property for enforcement purposes or when the school has provided information related to a student. The measure establishes procedures for how school personnel must respond to such requests, including requirements to verify the legal authority of the requesting agency before granting access. The measure also requires higher education institutions to adopt similar policies and training to provide similar notice to students and employees.

Effective: September 30, 2026

“Health Care Without Fear Act” (SB 1570)

Known as the “Health Care Without Fear Act,” Senate Bill (SB) 1570 restricts health care facilities and providers from voluntarily sharing a patient’s citizenship status, immigration status, or country of birth with immigration authorities. Health care providers and facilities are required to treat the information in the same manner as protected health information. SB 1570 requires health care facilities to develop written policies and procedures to address, among other issues, the employer’s response if a law enforcement authority arrives at the facility and to designate areas of the hospital that are not open to the public. The law also makes it an unlawful employment practice for a health care facility employer to retaliate or take disciplinary action against an employee for distributing informational or educational materials about immigrant rights and available immigration legal services if the materials are published or made available by a state agency.

Effective: June 5, 2026

Labor Standards for Minors (HB 4013)

HB 4013 establishes that Oregon’s rules on the total hours a minor may work may not be less restrictive than the requirements of the federal Fair Labor Standards Act (FLSA) in effect on January 1, 2026. Where ORS 653.307 previously established a ceiling on work-hour limitations, the law now sets a floor, so long as more restrictive rules are necessary to implement or conform to changes in federal or state law that increase protections for minors.

Effective: January 1, 2027

Companionship Services Modified Exception (SB 1518)

SB 1518 modifies the exclusion of “companionship services” employees from Oregon’s minimum wage, overtime, and minimum employment conditions requirements. Under the new law, the exclusion applies only when a person is providing companionship services as defined in federal regulations, specifically 29 C.F.R. § 552.6, as in effect on January 1, 2016, and only if the person is not employed, singly or jointly, by a third party in the business of providing home care or companionship services.

Effective: January 1, 2027

BOLI Funding Tax (HB 4027)

This new law establishes the Oregon Bureau of Labor and Industries (BOLI) Expenses Fund in the State Treasury and directs the director of the Department of Consumer and Business Services (DCBS) to manage the fund, subject to an agreement between the DCBS director and the BOLI commissioner.HB 4027 allows the DCBS director to set and collect an assessment from employers and employees to deposit in the fund and specifies the fund’s minimum sufficient funding. The new tax is expected to be around 0.2 cents per hour worked. Revenue raised by the tax will fund BOLI’s current staffing levels and is expected to support additional future positions.

Effective: June 5, 2026

Ogletree Deakins’ Portland, Oregon, office will continue to monitor developments and will provide updates on the Construction, Healthcare, Higher Education, Immigration, Oregon, and Wage and Hour blogs as additional information becomes available.

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