Key 2026 Employment Law Updates Healthcare Practices Must Prepare For: Insights from Watkinson Laird Rubenstein
Thank you to Daniel K. Olson, J.D. and Jaclyn K. Rudebeck, J.D. of Watkinson Laird Rubenstein, P.C. for an incisive update tailored to healthcare practices. The presentation covered a compact but consequential agenda — noncompetition agreements, the new overtime pay tax deduction, updated paystub explanation rules, Paid Leave Oregon clarifications, and other recent employment law changes — and reminded attendees that “This presentation includes general information regarding Oregon and federal law; it is not intended as legal advice.” Their practical framing made it easy for healthcare businesses to see which items require immediate attention and which warrant policy updates over the coming year.
The session discussion of noncompetition agreements highlighted Oregon’s evolving statutory landscape and the narrow exceptions that now apply to medical licensees, associates, owners, and administrative roles. HB 3912’s new doctor degree disclosure requirements effective 1/1/2026 and SB 951/HB 3410’s limits on enforceability for providers mean healthcare employers must revisit offer letters and contract language. The presenters also walked through the new federal overtime pay deduction (temporary through 2028) and Oregon’s SB 906 paystub explanation mandate effective 1/1/2026, both of which change payroll reporting and employee communications in ways that intersect with tax reporting and withholding.
From a tax strategy perspective for healthcare businesses, these employment law shifts affect both timing and classification of deductions. Noncompete buyouts, recruitment and onboarding investments, and separation payments should be reviewed for proper tax treatment and documentation, so they remain deductible and defensible on audit. The overtime deduction and new W 2 reporting requirements will change employee taxable income presentation and may affect payroll tax workflows; employers should coordinate payroll, HR, and tax teams to ensure W 2s and year end reconciliations reflect the new reporting lines. Practical items called out in the webinar — I 9 audit readiness, Paid Leave Oregon updates, and evolving independent contractor tests — also carry indirect tax consequences (withholding, unemployment, and workers’ comp classifications) that benefit from early planning.
The immediate action items are clear: update employment agreements and offer materials to reflect the new noncompete and doctor degree rules; revise paystub and onboarding disclosures to comply with SB 906; confirm payroll systems can separate and report overtime “and a half” as required; and document recruitment/onboarding costs and any associate investment exceptions carefully to support both employment and tax positions.
Jones & Roth can help translate these changes into tax efficient payroll practices and prepare documentation that supports year-end tax positions. Thank you again to Daniel Olson and Jaclyn Rudebeck and the team at Watkinson Laird Rubenstein for their clear guidance.
