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Payroll Transition General Information

Payroll Transition

How you are paid is changing by July 1, 2027. 

What’s changing? 

All employees will transition from a monthly pay schedule to a biweekly pay schedule, overtime eligible employees will get paid hourly instead of salary, and we will eliminate forecasting time.

Why we are making these changes? 

Our priority is ensuring every employee is paid accurately, on time, and in a way that’s easy to understand. Moving to a standardized biweekly schedule, paying overtime eligible employees hourly, and eliminating forecasting will help reduce errors and make pay clearer and more predictable. 

These changes will also help us remain fully compliant with state and federal laws.

Biweekly Pay Schedule for All Employees
​​All employees—represented, unclassified, and managers—will move to a biweekly pay schedule. That means you will receive your pay every other week instead of once a month for a total of 26 paychecks each year instead of​ 12.  

This transition is not a reduction in compensation. You will continue to earn the same annual amount. It will be distributed over 26 paychecks per year rather than 12. 

A biweekly paycheck is 1/26th of your annual compensation. This results in two months during the year having three paychecks.​

Hourly Pay for Overtime Eligible Employees
​Employees eligible for overtime under federal law, Fair Labor Standards Act (FLSA) Non-Exempt employees, who receive a monthly salary will transition to hourly pay. This change helps us pay you faster and makes understanding your pay easier. Your overtime will be reflected accurately in each pay period based on the hours you have already worked. 

Employees who are not eligible for overtime will remain salaried.​


Eliminating Forecasting
​Your pay will be based on actual hours worked in the previous biweekly period, not projected hours.  

The state will pay employees using a lag period rather than forecasting hours. A lag period in payroll refers to the gap between the end of a pay period (when employees earn their wages) and the payday (when those wages are paid out). Forecasting in payroll refers to predicting or estimating future work hours before the actual time is worked or submitted. 

You will receive more reliable pay because overtime and shift differentials will be paid in the same period as the regular hours worked. This change will greatly reduce errors and overpayments. You will only be paid for the hours you have already worked.​


Preparing for the Transition

How and when you are paid is deeply personal, and the state of Oregon is committed to making this transition as smooth as possible.

The state of Oregon will provide resources, training, and dedicated support for you during the transition.

We are working with a number of advisory committees made of labor and agency management to advise on several aspects of the transition, including employee resources, support, and training.

Because you are a state employee you have access to unlimited, free and confidential financial coaching anytime through your benefits. You can access these Employee Assistance Programs (EAP) benefits through Canopy. For instuction on how to sign up for a Canopy account visit the PEBB Wellness Programs website.

Resources for Employees

How to Learn More

Sign up to receive email updates. Subscribe to the Payroll Transition Project topic.

If you are a represented employee your labor organization's advisory committee may have additional ways for you to provide feedback. The labor advisory committees are:

  • Association of Engineering Employees (AEE) Structural Pay Changes Committee
  • Department of Corrections (DOC) Security Structural Pay Changes Committee
  • Department of Corrections (DOC) Security Plus Structural Pay Changes Committee 
  • Federation of Oregon Parole and Probation Officers (FOPPO) Structural Pay Changes Committee
  • Oregon Public Safety Association (OPSA) Structural Pay Changes Committee 
  • Oregon State Police Officers Association (OPSOA) Structural Pay Changes Committee 
  • American Federation of State, County & Municipal Employees (AFSCME) Central Table Structural Pay Changes Committee 
  • Association of Oregon Corrections Employees (AOCE) Structural Pay Changes Committee 
  • Criminal Investigators Association (CIA) Structural Pay Changes Committee 
  • Service Employees International Union (SEIU) Structural Pay Changes Committee 
Refer to your collective bargaining agreement for more information.

We want to hear from you.

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