Oregon Labor Laws (2026 Guide)

What’s New in 2026

• Minimum wage rates adjusted for inflation.
• New pay transparency requirements for new hires.
• Paid time off for blood donation.
• Workplace violence prevention obligations for healthcare employers.
• Unemployment benefits available for striking workers.
• Unemployment insurance taxable wage base increases.
• Minimum salary to enforce noncompetes rises.

Labor Law Posters

Federal labor law posters
State labor law posters

Wage and Hour Laws

Minimum wage

Minimum wages in Oregon vary by location and increase annually with inflation. Rates increase each July 1. Until June 30, 2026, the minimum wages are:

• Standard: $15.05 per hour. 
• Portland metro: $16.30 per hour. 
• Non-urban areas: $14.05 per hour.

Oregon’s minimum wages for July 1, 2026, to June 30, 2027, will be announced by April 30, 2026.

The Portland metro minimum applies within the Urban Growth Boundary (UGB). The state provides a tool to verify work locations in Oregon.

Oregon’s minimum wage law applies to most employees, with some limited exceptions. These include executive, administrative, and professional “white collar” employees who meet the federal salary exemption of $684 per week.

State minimum wages cover most employees, including minors, tipped workers, and new employees. Employers must pay the applicable state minimum wage, even if employees are covered by state and federal laws, because the state minimum is higher.

Tipped minimum wage

Employers can’t use tip credits to pay tipped employees less than the minimum wage. 

Mandatory tip pooling is allowed as long as management doesn’t participate in the pool. 

Overtime laws

Oregon’s overtime laws mirror federal overtime laws. Covered employees must be paid 1.5 times their regular rate of pay for every hour worked over 40 in a workweek. 

Oregon’s overtime laws don’t apply to all employees. The main exemption is for administrative, executive, or professional workers. 

Oregon also has separate overtime rules for workers in specific industries, including seafood processors, certain agricultural workers, and those employed in canneries, driers, and packing plants. Businesses must generally pay agricultural workers overtime for any hours worked over 48 in a week.

Employers can require employees to work mandatory overtime, and private employers can’t offer compensatory leave instead of overtime. 

Meal and rest breaks

Oregon’s wage and hour laws require employers to provide workers with rest and meal breaks, depending on their work hours. Generally, employees are entitled to:

• A paid 10-minute break for every 4 hours worked.
• A 30-minute unpaid meal break for shifts longer than 6 hours. 

Employees must be relieved of all work duties during their 30-minute meal breaks—otherwise, they must be paid.

Minors are entitled to the same 30-minute meal break as adult employees; the undue hardship meal break exemption doesn’t apply to minors under 16.

All minors must have a 15-minute break for every 4 hours they work.

The Oregon Bureau of Labor and Industries (BOLI) sets out break entitlements depending on the number of hours an employee works:

The timing of meal breaks depends on the length of a worker’s shift. Employees who work between 6 and 7 hours must take their meal break after the 2nd hour of work and before the start of the 5th hour. Employees who work more than 7 hours must take their break after the 3rd hour and before the 6th hour. 

Rest breaks should be given in the middle of each 4 hours an employee works (or as close to this as possible). Employers can’t combine meal and rest breaks or give an employee their rest breaks at the start or end of their shifts. 

There are limited exceptions to meal break requirements.

Under Oregon workplace safety and health laws, employees who work in high-heat conditions (90 degrees Fahrenheit or higher) must be given heat illness prevention breaks. The lengths and regularity of these breaks depend on the temperature. 

Employers must also give employees with children under 18 months old reasonable rest periods to express breast milk. 

Recordkeeping

Employers covered by Oregon’s wage and hour laws must keep records of employees’ hours and wages. These include:

• Employees’ full names and home addresses
• Dates of birth (if less than 19 years old)
• Employees’ roles
• When their workweek starts (time and date)
• Hourly rates of pay for any weeks where overtime pay is due
• Hours worked each day, plus weekly totals
• Earnings (without overtime)
• Overtime pay
• Any additions or deductions
• Total wages paid
• Dates of pay periods and payments

Payroll records must be kept for 3 years under wage and hour laws. However, contract and wage claims have a 6-year statute of limitations, so employers are advised to keep related records for at least 6 years.

Employee scheduling laws

Predictive scheduling laws apply to Oregon retail, hospitality, and food service employers with at least 500 employees. They apply to employees whose primary duties relate to retail, hospitality, or food services. 

Under these laws, employers must:

• Provide new employees with good-faith estimates of their work schedules in writing. 
• Provide each employee with a written work schedule at least 14 calendar days in advance.
• Pay penalties to employees who have their schedules changed without advanced notice.

These penalties are:

• 1 hour of the employee’s regular rate of pay, where an employer:
  • Extends a shift by more than 30 minutes.
  • Changes a shift’s start or end time (without affecting total work hours).
  • Requires an employee to work extra hours or on-call shifts.
• 1.5 times the employee’s regular rate of pay for each hour not worked because an employer:
  • Reduces an employee’s hours before or after they arrive at work.
  • Changes the start or end time of a shift (resulting in reduced work hours).
  • Cancels a shift.
  • Doesn’t require the employee to work when they’re on call.

Employees also have rights under predictive scheduling laws. These include the right to:

• Turn down additional shifts that aren’t on their original schedules. 
• Request flexibility around their scheduling—for example, for childcare reasons. (Employers don’t have to agree to these requests, but they can’t retaliate against employees for making them.) 
• Have at least a 10-hour break between finishing one shift and starting the next. (Employees can agree to work clopening shifts with less than 10 hours rest if the employer pays them 1.5 times their regular pay rate.) 

Employee Compensation and Benefits

New hire notification

Starting January 1, 2026, Oregon employers must provide new hires with written explanations of specific pay-related information at the time of hire. New hire pay notifications must explain all earnings and deductions shown on paystubs, and provide general information, including:

• The employer’s regular pay periods
• All pay rates for which the employee may be eligible
• All benefits
• All deductions that may apply
• Purposes of deductions that may be made in a regular pay period
• Any allowances
• All payroll codes used for pay rates and deductions

Employers may make this information available in an easily accessible location, such as a workplace noticeboard, website, or shared digital file, as well as email and individual paper notifications. Employers are also legally obligated to review and update their new-hire notifications annually.

Reporting time pay

Oregon has a specific reporting time law for minors who attend work, but are no longer required. These adequate work laws require employers to pay minors for half their shift or 1 hour’s wages—whichever is more. 

While there’s no equivalent law for adults, predictive scheduling laws (discussed above) require employers to pay penalties to employees whose scheduled hours are changed or reduced. 

Payday frequency and method

Oregon employers must pay employees on regular paydays. There can’t be more than 35 days between paydays. 

Oregon employers can pay employees by:

• Cash.
• Direct deposit.
• Check if requested by the employee. 
• Automated teller machine cards, payroll cards, and other electronic transfers—with employees’ voluntary agreement. Employees can’t be paid in a way that costs them money to access their wages. 

Paystub requirements

Employers must provide employees with paystubs on regular paydays or any other time compensation is paid. Each paystub must detail:

• Payment date
• Dates of pay period
• Employee’s name
• Employer’s name, business identification number, address, and phone number
• Pay rate/s
• How the employee is paid—i.e., hourly, daily, weekly, commission, or piecework
• Gross and net wages
• Any deductions, including their purpose(s)
• Minimum wage allowances

Furthermore:

• For employees paid by the hour and covered by overtime laws: their regular pay rates, overtime rates, number of hours worked, and pay for these hours (both regular and overtime).
• For employees paid a piece rate: their regular pay rate, the number of pieces completed, and total pay.

Employers can issue electronic paystubs if employees agree and can print or store them. 

Wage deductions and garnishments

Employers can deduct amounts from employees’ wages in the following situations:

• They’re legally required to do so—for example, for taxes. 
• The employee voluntarily agrees in writing to a deduction that doesn’t benefit the employer—for example, for health insurance or charitable donations. 
• The amount is for the employee’s meals and lodging, and they’ve authorized the deduction in writing. 
• A collective bargaining agreement allows it. 
• It’s the employee’s final paycheck, and they’re repaying a loan from the employer (specific criteria apply).
• In certain circumstances, the employer can deduct wage garnishment processing fees ($2 per week). 

Oregon employers can also make deductions for court-ordered garnishments. The law protects 75% of employees’ earnings (after payroll taxes), so up to 25% may be garnished unless the employee is exempt.

Excluding child and spousal support and restitution judgments, wages can’t be garnished for non-tax debts if they earn less than:

• $338 weekly 
• $675 every 2 weeks
• $737 half-monthly
• $1,458 monthly

The law sets out a formula to calculate the minimum wage exemption for different periods. 

These amounts will be updated on July 1, 2026, and annually thereafter.

If given a Notice of Garnishment, employers must complete and submit a Wage Exemption Calculation form to the Department of Revenue.

Final paycheck laws

Employers must pay employees their final paycheck within the following timeframes:

If an employer fails to pay the employee as required, they may face penalties up to 8 times the employee’s regular rate of pay for each day the wages are overdue—up to a maximum of 30 days. BOLI can also impose civil penalties of up to $1,000 on employers who willfully fail to pay final wages. 

Workers’ compensation

Most Oregon employers must have workers’ compensation for their employees—with some limited exceptions. Employers who fail to take out the necessary workers’ compensation can be fined by the Workers’ Compensation Division (WCD), which oversees workers’ compensation in Oregon. 

Workers’ compensation covers the costs related to a workplace injury or illness, such as medical treatment, lost wages due to more than 3 days off work or modified work, permanent partial disability, permanent total disability, and fatality benefits for spouses and children. 

Under Oregon’s workplace compensation laws, employers must:

• Provide workers with a Form 801, “Report of Job Injury or Illness,” to report a workplace injury.
• Report any workplace injuries or illnesses requiring medical treatment to their insurer within 5 days. 
• Keep injury and illness records for 5 years. 

Employers can’t discriminate against employees who file workers’ compensation claims. 

Employees must inform employers of workplace injuries or illnesses immediately. They must complete a Form 801 and provide it to their employer. Injured employees then see their doctor to complete Form 827, “Worker’s and Health Care Provider’s Report for Workers’ Compensation Claims.”

Employees receive a decision on their claim within 60 days of the employer’s awareness. 

Employees who disagree with a workers’ compensation decision can appeal by requesting a reconsideration with the WCD within 60 days of the mailing date on their Notice of Closure.

The WCD considers the request and issues an Order on Reconsideration containing its decision. Employees who disagree with the order can request a hearing before the Workers’ Compensation Board. They have 30 days after the order is issued to do so. 

Unemployment insurance

Employers fund Oregon’s unemployment benefits program through payroll taxes, which are revised each year. In 2026, the taxable wage base is $56,700, and employer tax rates range from 0.9% to 5.4%.

Unemployment benefits may be available to workers who’ve lost their jobs or had their hours reduced through no fault of their own, left their jobs for good cause, or are unemployed as a result of domestic violence, sexual assault, or stalking. 

Workers in these situations may be eligible for unemployment benefits if they:

• Earned sufficient income in the previous 12 to 18 months. 
• Are actively job-seeking and able and available for work.
• Have working rights in the US.

From January 4, 2026, employees may receive UI benefits while on strike, but only after 1 unpaid week. UI benefits for striking employees are capped at 8 or 10 weeks and must be repaid if the employee is backpaid by their employer. The limit is 10 weeks for 2026.

Oregon’s Employment Department manages unemployment benefits. Employees can file for unemployment benefits using the Employment Department’s Frances Online for Claimants system. 

Weekly benefits are calculated at 1.25% of an employee’s base period wages. A base period is the first 4 of the last 5 full calendar quarters before a benefits claim is filed. 

The minimum benefit amount an individual can receive is currently $204 per week, and the maximum is $872 per week. These minimums and maximums are revised annually each July 1.

Workers can access unemployment benefits for up to 26 weeks in a 52-week period. 

Workers can appeal benefits decisions by requesting a hearing within 20 days of the post date of the notice of determination. Hearings can be ordered online, in person, by mail, or by fax. 

An administrative law judge (ALJ) conducts hearings, usually over the phone. Workers can appeal ALJ decisions to the Employment Appeals Board. 

Workplace Rights and Protections

Discrimination and harassment

Under Oregon law, employers can’t discriminate against candidates or employees because of their:

• Race
• National origin
• Color
• Sex
• Gender identity
• Sexual orientation
• Marital or family status
• Pregnancy, childbirth, or related conditions 
• Age (18 and older) 
• Religion
• Disability (applies to employers with 6 or more employees)
• Military status

The prohibition against discrimination applies to all stages of the employment process, including recruitment, promotion, and termination. 

Employers are prohibited from asking age-related questions before they make a conditional job offer. This includes asking applicants for their age, date of birth, graduation date, and dates of attendance at educational institutions, unless an exception applies. Exceptions are made when age-related information is needed to comply with the law and to verify applicants’ bona fide occupational qualifications.

All employers must have a written policy outlining how to prevent discrimination, harassment, and sexual assault in the workplace. Each must give new employees a copy of the policy and store it in a location where all employees can access it, such as an employee handbook. 

Employers with 6 or more employees must make reasonable accommodations for disabilities and pregnancy-related conditions. Employers can refuse these accommodations only if they create undue hardship for the business. 

Employees have the right to file a discrimination complaint with BOLI or the federal Equal Employment Opportunity Commission (EEOC) or file a lawsuit. They can do so up to 5 years after the incident occurs. 

Employers are prohibited from retaliating against employees who file discrimination complaints or lawsuits. 

Oregon’s equal pay law requires employers to pay employees in comparable jobs the same wages. This equal pay law applies to all the protected classes listed above. 

Leave laws

Military, jury duty, and other mandatory leave

There are several other types of mandatory leave in Oregon. 

Child Labor Laws

Employers generally can’t employ workers under 14 years of age. However, some exceptions exist, such as minors working on farms or picking berries. 

Employers must apply annually for a certificate to hire workers under 18. They can do this online via BOLI. These certificates are for employers—not individual employees. 

Other specific permits and licenses are required for hiring minors under 14 or minors working in the agriculture or entertainment industries.

Employers must verify minor employees’ ages and keep a list of minor employees. 

Failure to comply with Oregon’s child labor laws can result in civil penalties of up to $10,000.

Workplace Safety and Health

The Oregon Safe Employment Act (OSEA) covers workplace safety and health at the state level. The Oregon Occupational Safety and Health Administration (OSHA) enforces OSEA.

Under OSEA, employers are required to provide employees with a safe working environment. Employers must:

• Meet Oregon OSHA standards. 
• Report any workplace fatalities within 8 hours and inpatient hospitalization, loss of an eye, amputation, or avulsions within 24 hours. 
• Keep a Log of Work-Related Injuries and Illnesses (this applies to nonexempt employers with over 10 employees). 
• Post OSHA Safety and Health posters at their worksites.
• Train employees on how to safely use machinery, equipment, and tools. 
• Not retaliate against employees who exercise their rights under OSEA, such as reporting hazards and requesting an Oregon OSHA inspection.

From January 1, 2026, healthcare employers have additional obligations under the OSEA, including creating and maintaining written workplace violence prevention policies and response plans, and providing training. 

OSEA gives employees the right to:

• Tell their employers about workplace hazards.
• Refuse to do tasks that put them at risk of imminent danger or serious harm. 
• Request workplace inspections by Oregon OSHA. 
• Give evidence in court about workplace hazards. 

Employees also have obligations under OSEA. These include:

• Following workplace safety and health rules. 
• Reporting any workplace hazards, injuries, or illnesses. 
• Wearing personal protective equipment (PPE) provided by their employer. 

Labor Union Regulations

Oregon workers can organize labor unions and engage in collective bargaining. However, Oregon doesn’t have any right-to-work laws. This means that employers and unions can require workers to join unions or pay union fees as conditions of employment. 

The Employment Relations Board (ERB) hears and decides labor disputes relating to public employees and private employees not covered by the National Labor Relations Act. 

Employment Contracts and Severance

Employment contract laws

In Oregon, employment relationships are presumed to be “at will.” This means the employer or employee can terminate the relationship at any time, for any lawful reason or no reason. Unlawful reasons for terminating an employment relationship include discrimination or retaliation. 

Written or verbal employment contracts can replace the at-will presumption. 

Employers can use noncompetes in employment contracts. However, a noncompete agreement will be void unless:

• The employer gives the employee notice of the noncompete at least 2 weeks before their start date, or the noncompete is related to a genuine promotion of a current employee. 
• The worker is a salaried administrative, executive, or professional employee whose annual income exceeds a minimum amount (currently $119,541). 
• There’s a legitimate business interest to protect. 
• The employer gives the employee a signed copy of the noncompete within 30 days of them leaving the organization.

Alternatively, a noncompete is valid if an employer pays the employee a minimum of 50% of their annual gross base salary and commissions or 50% of the minimum salary amount (currently $119,541). 

Noncompetes can restrict an employee for only 12 months after their employment ends.  

The same restrictions don’t apply to non-solicitation agreements.

Severance pay

Oregon employers aren’t required to give employees severance pay. Employers must follow the relevant requirements of an employment contract, policy, or collective bargaining agreement. 

Additional Laws That Might Apply to You

COVID-19-related laws and regulations

Oregon OSHA suspended its COVID-19 rules on April 3, 2023. Employees can wear masks if they choose, but employers don’t need to provide them. 

Navigating Legal Issues and Resources

BOLI’s website provides extensive resources for employers and employees regarding wage and hour laws, workplace discrimination, and leave entitlements. These include FAQs, factsheets, and compliance toolkits. 

The Oregon State Bar also offers employment law information on its website. 

Oregon Law Help compiles resources for workers on various labor law topics, as well as referrals to free and low-cost local legal advice. The Oregon Law Center is another source of free employment legal advice for low-income earners.

Oregon labor laws are complex and technical. For this reason, you should speak to a labor lawyer to get accurate information and advice tailored to your situation.

Disclaimer

The information presented on this website about labor laws in Oregon is a summary for informational purposes only and is not intended as legal advice. However, laws and regulations regularly change and may vary depending on individual circumstances. While we have made every effort to ensure the information provided is up-to-date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Therefore, we strongly recommend that readers seek guidance from their legal departments or qualified attorneys to ensure compliance with applicable laws and regulations. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.