RECENT UPDATES

Oregon & Washington Updates: Effective July 1, 2026

Here is an update of Oregon & Washington employment regulations coming into effect July 1, 2026.  And as we enter into the summer months, now is a great time to review the state Heat Illness Prevention regulations for your state:

Oregon Heat Illness Prevention Regulations

Washington Heat Illness Prevention Regulations

Oregon Updates

Minimum Wage Increase: Oregon minimum wage will increase on July 1, 2026. Here is a summary of the new rates, by region:

  • Portland Metro: $16.80 per hour (All employers located within the Portland urban growth boundary)

  • Standard Counties: $15.55 per hour (Benton, Clackamas, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Multnomah, Polk, Tillamook, Wasco, Washington and Yamhill Counties)

  • Non-Urban Counties: $14.55 per hour (Malheur, Lake, Harney, Wheeler, Sherman, Gilliam, Wallowa, Grant, Jefferson, Baker, Union, Crook, Klamath, Douglas, Coos, Curry, Umatilla and Morrow Counties)

It is a great idea for Oregon employers to update required Employment Posters each July, to correspond with the annual minimum wage update.  You can find reasonably priced “all-in-one” federal and state required posters on the BOLI website here

Washington Updates

Washington Fair Chance Act Expansion:  Effective July 1, 2026, employers of 15 or more employees may not ask about criminal history or request a background check until after making a conditional job offer (with some limited exceptions).

Employers also may not reject an otherwise qualified candidate based on an applicant’s juvenile conviction record or arrest record (unless they are currently out on bail, and a trial is pending). or individuals convicted of a crime.  Washington law will require a legitimate business reason for denying employment due to results of a criminal background check.   Note that this law will extend to employers with fewer than 15 employees starting January 1, 2027.   More detailed information about these requirements can be found in this article by Jackson Lewis.   

Here is a blog post from Ballard Spahr with information about other employment regulations that were updated for 2026. 

Washington Minimum Wage & Exempt Salary Threshold Increase: Effective January 1, 2026

Effective January 1, 2026, Washington’s minimum wage will increase to $17.13 per hour.

Some regions in Washington require a higher minimum wage: 

  • Bellingham: $19.13 per hour

  • Burien:  $19.15 to $21.65 per hour, depending on employer size

  • Everett:  $18.77 to $20.77 per hour, depending on employer size

  • Renton: $20.57–$21.57 per hour, depending on employer size

  • Seattle: $21.30 per hour

  • SeaTac: $20.74 per hour for employers in hospitality and transportation

  • Tukwila: $21.65 per hour

  • Unincorporated King County: $18.32–$20.82 per hour, depending on employer size

Note that the regional minimum wage determinations are complex.  If you employ people in those regions you will want to analyze the  minimum wage details closely. Here is a more expansive summary of the Washington minimum wage updates by region, as provided by Miller Nash.

Washington Minimum Salary Increase for Exempt Employees

Starting January 1, 2026, the minimum salary threshold for exempt employees will increase:

·       Executive, Administrative, or Professional exemption categories:  Paid a salary of at least $1,541.70 per week ($80,168.40 per year)

·       Computer professionals can be paid either a weekly salary of $1,541.70 or $59.96 per hour

Note that in order for a position to be classified as exempt from overtime, the role must meet the state and federal exemption duties test and the minimum salary threshold. 

Washington Paid Family & Medical Leave Updates: Effective January 1, 2026

All Washington employees are eligible to participate in the Washington Paid Family & Medical Leave (PFML) program if they have worked at least 820 hours during a qualifying period for a Washington employer, and have a qualifying event eligible for PFML.  But currently, an employee on Washington PFML is only guaranteed job restoration rights if they work for a Washington employer of 50 or more employees.  

Earlier this year, Washington House Bill 1213 significantly updated job restoration rights for employees on PFML.  These changes will go into effect starting January 1, 2026. 

In addition, the payroll tax for PFML for Washington employers will increase on January 1, 2026 to 1.13% (currently at .92%).  The payroll tax is split between the employer and the employee (employees 71.43% and employers 28.57%).  Please check with your payroll company and accounting professional to ensure that the payroll tax is updated for wages that occur as of January 1, 2026. 

Washington employers must notify Washington employees of the new rate and that it applies to wages paid on or after Jan. 1, 2026.  There will be a new mandatory poster available sometime in December.  You can upload the new poster and updated employer toolkits at paidleave.wa.gov/employer-roles-responsibilities once they are available. 

Here is a summary of the new PFML job restoration rights and other changes going forward:

  • Job restoration rights are expanded to cover most Washington employers under a phased timeline approach:

    • January 1, 2026 – December 31, 2026: Employers with 25+ employees

    • January 1, 2027 – December 31, 2027: Employers with 15+ employees

    • January 1, 2028 – Onward: Employers with 8+ employees

  • If a Washington employer has a qualifying number employees (per the schedule above), employees have PFML job restoration rights if they work for their employer for at least 180 calendar days.

  • If eligible for restoration, the employee must be restored to their job, or an equivalent one (same or equivalent title, pay, benefits, and working conditions), after returning from approved Paid Leave. You cannot terminate, demote, or penalize an employee for taking leave.

  • Health benefits must be continued for any period of PFML in which the employee is entitled to job protection.

  • PFML may be taken in a minimum of four consecutive hour increments

  • For employers with 50 or more employees:  An employer can count leave taken under the FMLA against an employee's PFML job restoration period if they provide written notice to the employee within five business days of the employee's initial request for or use of FMLA leave and then monthly thereafter during the leave year. This is true even if the employee has not applied for and is not receiving PFML benefits.

Here is a great summary of the various changes to the Washington Paid Family & Medical Leave program from Davis Wright Tremaine LLP. 

Oregon Wage Transparency Updates: Effective January 1, 2026

Effective January 1, 2026, all Oregon employers must provide a detailed written explanation of pay details and deductions to all employees.  This law requires you create an informational document outlining information such as pay periods, corresponding pay dates, and the codes you use on your payroll to identify possible pay deductions.  The purpose of this new law is to ensure employees understand all details regarding company pay policies, and give them information how to interpret the information on their pay stubs.

Here is the breakdown of what you must do by January 1, 2026:

·       Create a comprehensive document outlining all pay information, as required by the new law.  BOLI has provided a template that can be used for this purpose.  You must customize this document before distributing. 

·       Distribute this document to all new employees upon hire.  I recommend that you distribute this document to all current employees as well, as a good faith effort to be transparent in your pay process and policies.

·       You can distribute this document electronically, hand a paper copy to employees, post in a conspicuous place in your workplace (such as with your other employment posters), include in your Employee Handbook, or all of the above.   

You are also required to review and update the informational document annually going forward, by January 1st of each year. 

This new law is in addition to the previous requirement that Oregon employers provide itemized pay statements with every payment to employees, in accordance with ORS 652.610.

Here is a link to the BOLI FAQ page on paycheck deductions, itemized pay statement requirements, and the new required informational document.

You can learn more about this new requirement in this article by Miller Nash

Oregon Employment Regulation Updates - 2025 Legislative Session

Here are a few important employment regulation updates for Oregon employers resulting from the most recent legislative session.

Paid Leave Oregon Updates

Effective September 26, 2025, employers may require employees returning from medical leave to provide medical certification stating they are able to return to work, if the employer maintains a uniformly applied practice or policy requiring such certification.  If you wish to require an employee to provide a release to work after taking medical leave you will want to consistently require certification from all employees returning from medical leave going forward. 

Wage Transparency

Effective January 1, 2026, all employers in Oregon must provide employees with a written explanation of earnings, deductions, pay dates, and pay period information time of hire.  We expect to receive a template example of what specific information needs to be provided from BOLI in the next few months.  Stay tuned, and I will be sure to forward along template information once it is presented.   In the meantime, check out this article about the new rule from Ogletree Deakins.  

Oregon Sick Leave Updates

Effective January 1, 2026, employees may use available protected sick time to donate blood through a voluntary program approved or accredited by the American Association of Blood Banks or the American Red Cross.

Age Discrimination

Effective September 26, 2025 Oregon employers are specifically restricted from requesting or requiring disclosure of an applicant’s age or date of birth and dates of attendance or graduation from educational institutions prior to completing an initial interview or, if no interview occurs, before making a conditional offer of employment.

Washington Updates

Updates to Personnel File rules

The Washington legislature has passed updated regulations allowing for additional protections and clarity for employee’s wishing to view their personnel file.  The new rules go into effect on July 27, 2025, and includes:

·       A clarified definition of “personnel file”, to include job applications, performance evaluations, non-active or closed disciplinary records, leave or accommodation paperwork, payroll records, and employment agreements, (if these documents exist as part of the company’s procedures or employment activities). 

  • 21-day, no-fee file deadline. Private employers must provide a complete copy of the personnel file within 21 calendar days of any request by a current or former employee (or authorized representative), at no cost to the employee.

  • 21-day termination statement deadline. Upon written request of a former employee (or their representative), employers must provide them a written statement as to the date and reason for the termination of employment. 

 

Here is a blog post from Miller Nash with more information about the new rules. 

Drivers Licenses as a Condition of Employment

Effective July 27, 2025 Washington employers are prohibited from requiring a valid driver’s license as a condition of employment or including a statement in a job posting that a driver’s license is required for the job, unless driving is an essential job function or related to a legitimate business purpose for the position.

Expansion of Paid Sick Time Reasons for Leave

Washington State has expanded the reasons employees can use state required Paid Sick Time to include use of leave to prepare for, or participate in, any judicial or administrative immigration proceeding involving the employee.  This update will go into effect on July 27, 2025.  Here is an article from Littler, P.C. explaining the update.

Mini-WARN Act

Effective July 27th, 2025, private employers with 50 or more Washington employees (excluding part-time employees) must provide 60 days’ written notice to affected employees (or their bargaining representative) and the Employment Security Department (ESD) before implementing a “mass layoff” or “business closing”.

  • A “mass layoff” is a reduction in force not resulting from a business closing that causes an “employment loss” of 50 or more employees (excluding part-timer workers) in any 30-day period.

  • A “business closing” is the permanent or temporary shutdown of a single employment site of one or more facilities or operating units that results in an “employment loss” of 50 or more employees.

Here is an article from Seyfarth explaining the details of this regulation.

Oregon - Major OFLA Update

Effective July 1, 2024, there will be a substantial change in the types of leave covered under the Oregon Family Leave Act (OFLA) In essence, the types of leave covered under the new Paid Leave Oregon program will no longer be covered under OFLA, to include family leave (aka parental bonding leave), or serious health condition leave for an employee or their family member. Family leave and serious health condition leave will be solely covered under Paid Leave Oregon.

On and after July 1, 2024, OFLA leave will only be available for the following reasons:

  • Sick child leave to provide home care for a child (including home care for a child with a serious health condition);

  • To care for a child of the employee or spouse or domestic partner whose school or childcare provider has been closed in conjunction with a declared public health emergency;

  • Bereavement leave up to four weeks per year;

  • Pregnancy-related disability leave (this leave is in addition to other leave available under OFLA and Paid Leave Oregon); and

  • Leave to effectuate the legal process required for placement of a foster child or the adoption of a child (child placement leave) for a total of two weeks, through December 31, 2024.

If you have an employee who is on an OFLA covered leave, you must notify them with a notice that the leave will no longer be covered as of July 1, 2024.  This notice must be sent to the affected employees by June 1, 2024.  Here is a great article by Stoel Rives on what needs to be included in this notice