Oregon and Washington each have a wave of new state workplace laws taking effect this month and throughout the next year. This Insight rounds up key legislation that employers in the Pacific Northwest need to know.
Oregon
Effective June 5, 2026
- Immigration-Related Employment Protections (HB 4111). Employers will be prohibited from discharging or discriminating, retaliating, or taking adverse action against an employee because they have updated (or attempted to update) their personal information based on a lawful change in their federal employment authorization documentation. The new law does not ban employers from taking actions necessary to comply with federal employment authorization requirements, nor does it hold an employer responsible when a third-party benefit administrator independently takes such adverse actions against an employee.
- New “Healthcare Without Fear” Act (SB 1570). Covered healthcare facilities will be prohibited from retaliating or taking disciplinary action against an employee for distributing informational or educational materials concerning immigrant rights and available immigration legal services if the materials are published or otherwise made available by a state agency. An employee alleging a violation of this new law may file a complaint with the Bureau of Labor and Industries (BOLI). The law also requires hospitals to adopt and maintain written policies that, among other things, address how the hospital will respond if a law enforcement authority arrives on site. In addition, hospitals must designate certain areas as not open to the public (such as patient rooms), and all covered healthcare facilities must treat information about a person’s citizenship, immigration status, or country of birth in the same manner as it is required to treat protected health information under state law.
- New Target on Unlicensed Contractors at Construction Sites (HB 4012). The Oregon Construction Contractors Board will begin planning for a targeted assessment initiative it will conduct from January 1 to July 1 next year. During that period, the Board will work with BOLI to observe and collect information related to the use of unlicensed labor contractors on construction job sites. This initiative may make job site inspections more likely, which will be especially important given another new law (HB 4089 – discussed further below) that targets the use of construction labor contractors who are not properly licensed.
Effective September 30, 2026
- Required Notice of Immigration Enforcement on School Campuses (HB 4079). Public school district boards will be required to adopt a policy for providing notice when a federal immigration authority is confirmed to have entered school property for immigration enforcement. The policy must align with applicable model policies and meet extensive requirements. Similar rules will also apply to governing boards of public universities, the board of education of a community college district, and the Oregon Health and Science University Board of Directors.
Effective January 1, 2027
- Update to BOLI Regulation of Working Hours for Minors (HB 4013). BOLI will be authorized to adopt rules regarding the total hours a minor can work that may not be less restrictive than the requirements under the federal Fair Labor Standards Act (FLSA) as in effect on January 1, 2026 (compare this to existing law, which prohibits BOLI’s standards from being more restrictive than FLSA requirements, except as otherwise provided by Oregon law). However, BOLI’s rules will be permitted to be more restrictive only as necessary to implement or conform to changes in the FLSA or state law that increase protections for minors.
- Clarity on “Companionship Services” Exclusion for Wage Rules (SB 1518). A new law clarifies that employees do not qualify for the “domestic worker” exclusion from various state minimum wage, overtime, and workplace conditions rules if they perform companionship services as defined in federal regulations – “unless, and only to the extent that, the individuals are employed, singly or jointly, by a third party engaged in the business of providing home care or companionship services.”
- Increased Penalties for Wage Theft, Use of Unlicensed Construction Labor Contractors (HB 4089). A new law expands the crime of “theft of services” to include partial payments, making it easier for prosecutors to go after intentional underpayment for work. It also increases criminal penalties on contractors or subcontractors for knowingly entering into contracts with construction labor contractors who are not properly licensed.
Effective July 1, 2027
- Employee Safety Plan Mandate for Behavioral Health Employers (HB 4069). Certain entities that contract with the Oregon Health Authority (OHA) for the provision of behavioral health services (such as certain residential treatment facilities, detoxification centers, and emergency shelters) must implement a written policy or plan for the physical safety of their workers and provide a copy to employees upon hire. The plan must address certain details, including, for example, the physical safety of lone workers and how workers may report structural hazards. These requirements will apply to covered behavioral health employers on or after July 1, 2027 – specifically, starting either on the date the entity first renews, extends, or amends an existing contract with the OHA or on the date a covered employer first enters a contract with the OHA.
Washington
Effective June 11, 2026
- State Expansion Into NLRB Territory (HB 2471). Washington recently joined a growing list of states to enact a so-called “trigger” labor law which will allow the state’s labor board to regulate private-sector labor relations if the federal framework fails. The new legislation, which takes effect June 11, is part of a growing effort by states to fill perceived gaps at the federal level – a movement that the National Labor Relations Board strongly opposes and is actively challenging in courts. We covered everything employers need to know, plus what you can expect next.
- Cash Rounding Rules for Penny Shortage (HB 2334). Washington businesses will soon be allowed to round, to the nearest five-cent increments, the total price or change due for any in-person cash transaction. Customers will also have the option to pay the original price if they have exact change. Learn more here: Retailers Are Feeling the Pinch of the Penny Shortage: 7 Steps to Take as States Offer Guidance.
Effective July 1, 2026
- More Limits on Criminal Background Checks (15 or More Employees) (HB 1747). A state law enacted last year expands protections for job applicants and employees under the state’s Fair Chance Act, aligning the statewide law more closely with Seattle’s Fair Chance Employment Ordinance. The new restrictions apply starting July 1 for employers with 15 or more employees (January 1, 2027, for employers with fewer than 15 employees). Learn more about what’s changing and steps you can take to comply.
- Stronger Protections for Working Minors, More Opportunities for Older Teens. One law (HB 1644) will, among other things, increase penalties for child labor law violations and, in certain circumstances, require the state to revoke an employer’s minor permit for at least 12 months. Another law (HB 1121) will allow 16- or 17-years old and enrolled in a bona fide college program or in a qualifying career and technical education program to work more hours during the school year. Hiring teens this summer? Check out our full guide to compliance with child labor rules.
Effective January 1, 2027
- More Limits on Criminal Background Checks (Fewer Than 15 Employees) (HB 1747). As mentioned above, a state law enacted last year expands protections for job applicants and employees under the state’s Fair Chance Act, and, for employers with fewer than 15 employees, the new restrictions kick in January 1, 2027. Learn more here.
- Parameters Around Companion Chatbots (HB 2225). Businesses are increasingly turning to chatbots to interface with consumers, job applicants, and employees. As the gap between human and AI capabilities continues to narrow, concerns are growing about the social and emotional repercussions of people – especially minors – interfacing with “intelligent” machines. This new law establishes parameters around AI-powered chatbots that act like friends or companions. We covered everything you need to know to maintain compliance and implement best practices.
Effective June 30, 2027
- Total Ban on Non-Competes (HB 1155). Employers in Washington State will no longer be able to utilize non-compete agreements in the workplace. Essentially all existing non-competes in the state will become null and void for all Washington-based workers, including independent contractors, starting on June 30, 2027. Employers must also meet an October 1, 2027, deadline to provide written notice to current and former employees and independent contractors who still have active non-competes, informing them that these agreements are no longer enforceable.
Learn more about the new law and how you can prepare.
