Oregon Bill Combines Pay Transparency And Fair Chance Hiring

You've posted a job, screened a few resumes, and started your first interview with a promising candidate. Before discussing compensation, you ask a seemingly simple question: "What did you make in your last role?" Under Oregon law, that question is already off-limits. A new bill under consideration would extend these rules further-and change how employers navigate not just compensation conversations, but also criminal background checks and job postings.

House Bill 2746, introduced during Oregon's 2025 legislative session, proposes a sweeping update to state employment regulations by combining three interrelated policies-pay transparency, salary history restrictions, and fair chance hiring practices-into a single compliance framework. This approach reflects a broader national trend to address systemic barriers to employment through unified legislation rather than isolated reforms.

Compensation Disclosure and Pay Transparency

At the heart of HB 2746 is a proposal to mandate proactive compensation disclosures. If passed, the bill would require employers and employment agencies to include wage or wage range information, a general description of benefits, and any other compensation in all job postings. This requirement would apply not only to external advertisements but also to internal opportunities related to promotions and transfers.

In addition to postings, the bill would require employers to provide the same compensation information:

• To job applicants upon request and before any compensation discussion or offer;

• To employees at the time of hire, transfer, or promotion;

• And once per calendar year, if requested.

These requirements would apply to any position that could be performed in whole or in part within Oregon-including remote or hybrid roles.

This marks a significant shift. While some states-such as California, ColoradoNew York, and New York-have already adopted similar requirements, Oregon currently has no statewide pay transparency mandate. HB 2746 would place Oregon among a growing number of jurisdictions emphasizing compensation clarity to help reduce wage disparities and foster transparency in hiring.

Salary History Inquiries: Expanded Restrictions and Clarified Boundaries

Oregon law already prohibits employers from requesting salary history before making a job offer that includes a pay amount. HB 2746 does not change the core restriction but expands its reach to include employment agencies, which are currently outside the scope of the statute.

The bill preserves a key nuance that's important for employers to understand: while it prohibits asking about past pay, it does not prevent employers from asking about salary expectations. Employers may still ask questions such as:

"What are your compensation expectations for this role?"

However, questions that solicit information about previous wages remain impermissible unless the candidate voluntarily discloses that information after an offer is made, and the employer receives written authorization to verify it.

This clarification can help employers strike a balance between compensation strategy and compliance as they assess candidate fit within established salary bands.

Criminal History Inquiries: Reinforcing Fair Chance Hiring

HB 2746 also revisits Oregon's existing "ban-the-box" law, which prohibits employers from inquiring into an applicant's criminal history prior to an initial interview-or before a conditional offer, if no interview occurs. The bill retains that timing restriction and explicitly extends it to employment agencies, ensuring that recruiters and staffing partners adhere to the same standards as direct employers.

The bill outlines specific exceptions for roles where background checks are required by federal, state, or local law, or where the employer operates in law enforcement or the criminal justice system.

Notably, the bill does not incorporate elements of Portland's Fair Chance Ordinance, such as the requirement to conduct individualized assessments or provide written notice if an offer is rescinded due to a candidate's criminal record. However, HB 2746 does create a statewide baseline that would standardize compliance expectations for employment agencies across Oregon.

Implications for Employers

If passed, HB 2746 would affect multiple facets of hiring and talent management, particularly for organizations with multistate operations, remote roles, or third-party recruiting partnerships.

Employers and employment agencies would need to:

• Review and update job postings to ensure wage ranges and benefits are clearly disclosed;

• Confirm interview guides exclude questions related to salary history, while safely allowing discussions about expectations;

• Adjust the timing of criminal background checks to align with interview or offer stages;

• Train recruiters, hiring managers, and HR professionals on the new requirements.

Employers would also be required to:

• Retain compensation-related records-including wage ranges and wage history-for the duration of employment and two years after separation.

Importantly, HB 2746 does not contain a preemption clause, meaning local ordinances like Portland's Fair Chance Ordinance would continue to apply. Employers operating in or hiring for roles based in Portland must still comply with more restrictive local requirements, such as conducting individualized assessments and providing written notice when adverse action is taken based on criminal history.

Preparing for a Potential Shift

HB 2746 reflects a broader legislative trend: the convergence of pay equity, fair chance hiring, and anti-discrimination measures into integrated compliance frameworks. While the bill remains under consideration, it signals where employment regulation is heading-not just in Oregon, but nationwide.

Employers who proactively evaluate their hiring processes, compensation disclosures, and background screening practices will be better prepared to adapt should the bill become law. Those who wait may find themselves navigating compliance after the fact.

As regulations continue to evolve, employers may need to ask not just whether their hiring practices are competitive-but whether they're compliant, equitable, and ready for what's next.

Release Date: April 3, 2025