Oregon Labor Law Guide
Oregon is located in the Pacific Northwest region of the United States. In 2023, the state had a population of approximately 4.3 million people, with an economy valued at $290 billion USD. Oregon’s economy is driven by diverse sectors, including technology, manufacturing, agriculture, and forestry. Key industries like semiconductor manufacturing and sustainable agriculture play a vital role in its economic growth. Oregon fosters a business-friendly environment with incentives for industries like technology, clean energy, and agriculture, while maintaining strong labor laws for worker protection.
Minimum Wage
$14.70 per hour (statewide)
Overtime Wage
1.5x regular rate for hours > 40 per week
Meal Breaks
30 minutes after 6 hours worked
Rest Breaks
10 minutes for every 4 hours worked
Oregon has a state minimum wage law. As of 2024, the minimum wage is $14.70 per hour. However, different regions within the state have higher minimum wages. For instance:
Portland Metro Area: $15.95 per hour
Non-urban Counties: $13.70 per hour
These varying rates ensure that the cost of living in different regions is accounted for in wage regulations.
Oregon requires non-exempt employees to be paid overtime for any hours worked over 40 in a workweek. The overtime rate is 1.5 times the employee’s regular hourly rate. Oregon does not have daily overtime requirements, but employees working more than 10 hours in a single day in the manufacturing industry must receive overtime pay.
Alternate Workweek Agreements: Oregon allows certain industries to implement alternate workweek schedules, provided they are agreed upon through a formal process.
Exemptions: Some employees, such as administrative, executive, and professional employees, may be exempt from overtime laws if they meet specific salary and duties criteria.
Meal Breaks: Employees working over six consecutive hours are entitled to a 30-minute unpaid meal break. The break must be provided no later than five hours into the workday.
Rest Breaks: Oregon law mandates a 10-minute paid rest break for every four hours worked. Employers must schedule these breaks as close to the middle of the work period as possible.
Rules for Young Employees: Minors under the age of 18 must receive additional protections. Employees aged 14-17 are entitled to a 15-minute break for every four hours worked, and they cannot work more than eight hours per day. Employers must comply with the federal Fair Labor Standards Act (FLSA) when employing minors.
Oregon provides several protections related to paid leave and time off.
Paid Sick Leave Laws: Oregon requires that employers provide one hour of paid sick leave for every 30 hours worked, up to 40 hours per year. Employees may use this leave for personal illness, care of a family member, or any public health emergency.
Accrual and Usage of Sick Leave: Sick leave accrual begins on the first day of employment, and employees can begin using it after 90 days. Unused sick leave can be carried over to the next year, but employees cannot accrue more than 80 hours of leave.
Paid Time Off Laws: Oregon does not require employers to offer paid vacation, but those who do must follow rules on accrual and usage.
Other Leave Laws:
Jury Duty Leave: Employers must provide time off for jury duty, though it is generally unpaid.
Parental Leave: Oregon’s Paid Family and Medical Leave (PFML) offers up to 12 weeks of paid leave for new parents or those caring for ill family members.
Bereavement Leave: Employers are required to offer unpaid bereavement leave, up to two weeks.
Voting Leave: Employees are entitled to unpaid time off to vote if their working hours don’t allow them sufficient time to vote outside of work hours.
FMLA Eligibility: Oregon workers are eligible for FMLA benefits if they meet federal requirements of working 1,250 hours in the prior 12 months.
Exempt Employees:
Salary Basis: Exempt employees must be paid a salary, not hourly wages.
Salary Level: The minimum salary for exempt employees in Oregon as of 2024 is $1,259.20 per week.
Duties Test: To be classified as exempt, employees must primarily perform executive, administrative, or professional duties. Oregon’s requirements align closely with federal standards.
Non-Exempt Employees:
Hourly Pay Rules: Non-exempt employees must be paid at least the state or local minimum wage for every hour worked.
Overtime Wage Rules: Non-exempt employees are entitled to overtime pay at 1.5 times their regular hourly rate for hours worked over 40 per week.
The federal Equal Pay Act requires that men and women be paid equally for substantially similar work. Oregon’s Equal Pay Act expands this to include protections based on race, ethnicity, sexual orientation, and other protected categories. Oregon’s law also prohibits employers from asking about salary history during the hiring process.
Employers must comply with Title VII of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, religion, sex, or national origin.
At-Will Employment: Oregon is an at-will employment state, meaning either the employer or the employee can terminate the employment relationship at any time without notice, as long as the reason is lawful.
Anti-Discrimination Laws: Oregon’s anti-discrimination laws prohibit employment discrimination based on race, religion, gender, sexual orientation, age, disability, and other protected categories.
Equal Employment Opportunity (EEO) Act: Oregon follows both state and federal EEO regulations to ensure that employers do not discriminate in hiring, promotions, or firing.
Background Verification Rules: Oregon’s “ban-the-box” law restricts employers from asking about criminal history on initial job applications. Background checks are allowed later in the hiring process.
Work Eligibility Verification Rules: Employers must comply with federal I-9 verification requirements to ensure work eligibility for all employees.
Final Paychecks: Employers are required to issue final paychecks within five business days after termination or by the next payday, whichever is sooner.
Unemployment Compensation Rules: Employees terminated without cause may be eligible for unemployment benefits if they meet the state’s eligibility criteria.
Compliance with WARN Act: Employers must provide 60 days’ notice for mass layoffs or plant closures, in accordance with the federal Worker Adjustment and Retraining Notification (WARN) Act.