Oregon Labor Laws 2026: A Complete Guide for HR & Employer Compliance

Accurate as of May 8, 2026. This guide is informational and not legal advice. For specific situations, consult licensed Oregon employment counsel.

Oregon does not look like its neighbors. The state runs a three-tier minimum wage tied to geography, layers Paid Leave Oregon on top of a separate Oregon Family Leave Act, and applies one of the country's most aggressive limits on noncompetition agreements. As of January 1, 2026, those rules sit alongside a brand-new statute that makes property owners and direct contractors strictly liable for unpaid wages on most construction projects, and a paystub-explanation mandate that BOLI can fine employers $500 per violation for ignoring.

This guide walks Oregon HR teams through the wage and hour statutes, the leave architecture, the discrimination and harassment framework, the new 2026 obligations from the 2025 legislative session, and the agencies that enforce all of it. The goal is plain: keep the employee handbook, the offer letter, the paystub, and the investigation file consistent with current Oregon law.

If your team handles complaints across Oregon work sites, a centralized intake and case file makes the difference between a defensible record and a guess. Many Oregon employers route harassment, retaliation, and wage complaints into an employee relations platform so reports, witness statements, and timelines live in one place.

The 2026 Oregon Employment Law Updates HR Teams Should Know First

The 2025 Oregon Legislative Session produced a stack of changes that landed on January 1, 2026 or earlier. Each one carries real penalties and several apply retroactively. Read this section first, then read the detailed rules below.

• Paystub explanation at hire (SB 906): Effective January 1, 2026, every Oregon employer must give new hires a written explanation of pay periods, pay rates, deductions, benefits, and any payroll codes. BOLI may fine up to $500 per violation under ORS 652.610.
• Owner and contractor wage liability (SB 426): Effective January 1, 2026, property owners and direct contractors are jointly and severally liable for unpaid wages owed to non-union employees of any subcontractor on most construction projects, regardless of tier and even after paying the direct contractor in full.
• Healthcare practitioner restrictive covenants (SB 951): Signed June 9, 2025. Voids most noncompete, nondisparagement, and nondisclosure provisions tied to medical licensees, with narrow exceptions for licensees who own at least 1.5% of the employer (or 10% in physician-owned practices, depending on the structure).
• Age-related hiring questions (HB 3187): Effective January 1, 2026, Oregon employers may not request an applicant's age, date of birth, or graduation date before the initial interview, or before a conditional offer if no interview occurs.
• BOLI right-to-sue clock (HB 2957): Effective June 24, 2025. A BOLI dismissal no longer cuts a complainant's court window down to 90 days when the underlying statute of limitations is longer. Employers may not contractually shorten BOLI-enforceable limitations periods.
• Striker unemployment benefits (SB 916): Signed June 24, 2025. Striking workers may collect up to 10 weeks of unemployment benefits, making Oregon the first state to extend strike benefits to both private and public employees.
• Paid Leave Oregon contribution rate (2026): Stays at 1% of wages, with the first $184,500 of wages subject to contributions and a maximum weekly benefit of $1,636.56.
• Lactation accommodation for agricultural workers (HB 2541): Signed May 7, 2025. Pulls farm workers under the same milk-expression accommodation rules that apply in other industries.
• BOLI Employer Assistance Division (HB 2248): Establishes a formal division to issue guidance and advisory opinions, giving employers a clearer path to confirm interpretations before BOLI enforcement.
• Noncompete salary threshold (2026): Rises to $119,541 per BOLI. Agreements with employees earning below this annualized amount at termination are void unless the employer pays the statutory garden-leave alternative.

The detail behind each of these, plus the older Oregon statutes that still drive day-to-day compliance, sits in the sections below.

Oregon Minimum Wage: The Three-Tier Rate System

Oregon is one of the few states that pays different statutory minimums based on geography. The Bureau of Labor and Industries (BOLI) sets the three rates each year on July 1 using a formula tied to the Consumer Price Index for All Urban Consumers, West Region.

What are the current Oregon minimum wage rates?

The rates effective July 1, 2025 through June 30, 2026:

• Portland metro (urban growth boundary): $15.45 per hour
• Standard counties: $14.20 per hour
• Non-urban counties: $13.20 per hour

BOLI announced the next round on April 23, 2026 based on a 3.3% annual CPI increase. The rates effective July 1, 2026 through June 30, 2027:

• Portland metro: $16.80 per hour
• Standard counties: $15.55 per hour
• Non-urban counties: $14.55 per hour

By statute, the Portland metro rate runs $1.25 above the standard rate and the non-urban rate runs $1.00 below. The non-urban tier covers 18 counties: Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler.

Which rate applies to which employee?

The rate follows the location of the work, not the employer's headquarters. An employee who works at a Beaverton site within the Portland urban growth boundary earns the metro rate even if the company is based in Bend. For mobile workers like installers, drivers, and sales reps, the rule is that the employer must pay the highest applicable rate for the workweek if the employee crosses tiers.

Tipped employees and the Oregon tip credit

Oregon does not allow a tip credit. Tipped workers must receive at least the full applicable minimum wage before tips. This is a meaningful difference from federal law and from neighboring states like Washington (no tip credit) and Idaho (federal tip credit applies). For HR teams running multi-state operations, a single tip-pooling policy that works in one state can produce wage claims in another.

Subminimum wages and special workers

Oregon allows limited subminimum wages in only a few categories. Workers with disabilities certified under federal Section 14(c) and student learners under specific BOLI-approved programs may be paid less than the applicable minimum, but the use of these certificates has narrowed substantially in recent years. Most employers should treat the applicable tier rate as the floor for every hour worked.

Oregon Overtime, Hours, and Exempt Status

When does overtime kick in?

Oregon follows the federal Fair Labor Standards Act 40-hour weekly overtime rule for most employers. Overtime is paid at 1.5 times the regular rate of pay for hours worked over 40 in a workweek.

Manufacturing employers face a different rule. Under ORS 652.020, manufacturing establishments owe daily overtime after 10 hours in a single day, and the daily and weekly overtime calculations interact in ways that sometimes result in time-and-a-half on lower hour counts than 40.

What is the salary threshold for exempt employees in Oregon?

Oregon does not set its own white-collar exemption salary threshold. The federal threshold applies: $684 per week ($35,568 annually), after the Eastern District of Texas vacated the U.S. Department of Labor's 2024 increase. Oregon employers should still document the duties test carefully because BOLI places the burden on the employer to prove an exemption applies.

Common misclassification traps

Misclassification cases in Oregon usually trace back to a few patterns:

• Salaried but hourly in disguise: Paying a flat salary while docking pay for partial-day absences breaks the salary basis test.
• "Manager" titles without managerial duties: The duties test asks what the employee actually does, not what the title says.
• Misapplied administrative exemption: Routine clerical work, customer service, and inside sales rarely meet the discretion-and-independent-judgment standard.
• Outside sales in name only: The exemption requires regular work away from the employer's place of business.

When BOLI investigates a wage claim, the agency reviews timekeeping records, job descriptions, and actual practice. Documentation across written policies and procedures matters more than titles on an org chart.

Oregon Meal Periods and Rest Breaks

OAR 839-020-0050 governs Oregon meal and rest periods. The rules are stricter than the federal baseline and the recordkeeping requirements catch employers off guard.

How long are meal periods and rest breaks in Oregon?

• Meal period: 30 continuous minutes, unpaid, for any work period of 6 to 8 hours during which the employee is fully relieved of duty.
• Rest break: 10 paid minutes for every segment of 4 hours or major portion thereof (more than 2 hours).
• No combining: Meal and rest periods must be taken separately. Rest periods sit as close to the midpoint of each 4-hour segment as possible.

What if a meal period gets interrupted?

If the employee is not relieved of all duties for the full 30 continuous minutes, the employer must pay for the entire 30-minute period, even if the interruption was a single minute. Oregon courts have applied this rule strictly. A working-through-lunch culture in a Portland warehouse or a Salem call center generates wage claims fast.

Recordkeeping rule

Employers must keep records showing whether each employee received the 30-minute meal break. BOLI investigators routinely request these records during wage and hour audits. Time-tracking systems that auto-deduct 30 minutes without recording when the break started and ended fail the test.

Coverage exceptions

Some industries have specific carve-outs in OAR 839-020. Agriculture, certain healthcare settings, and union-represented workforces with collective bargaining agreements that provide equivalent protections may operate under different schedules. Even in those cases, employers must document the equivalency in writing and apply it consistently.

Final Paycheck Rules and Penalty Wages in Oregon

ORS 652.140 sets some of the tightest final-pay deadlines in the country, and ORS 652.150 imposes one of the steepest penalties for missing them.

When is the final paycheck due?

• Termination by employer: All wages are due no later than the end of the next business day after discharge.
• Quit with at least 48 hours' notice (excluding weekends and holidays): Wages are due immediately on the last day of work.
• Quit without 48 hours' notice: Wages are due within 5 business days, or by the next regular payday, whichever comes first.
• Mutual agreement to end employment: Pay is due by the end of the next business day.

What is the Oregon late-pay penalty?

If the employer willfully fails to pay on time, wages continue to accrue at the employee's hourly rate for 8 hours per day, up to 30 days. After written notice from the employee or BOLI, the penalty caps at 100% of unpaid wages unless the employer fails to pay within 12 days of receiving notice. A four-figure unpaid wage problem can become a five-figure penalty inside a month.

Practical implications

Oregon employers running termination meetings on a Friday afternoon need to time payroll carefully. The next-business-day rule means a Friday termination triggers a Monday deadline. If payroll runs Wednesday, the company needs to cut a manual check. Coordinating termination decisions with payroll is one of the simplest ways to avoid penalty wages, often paired with a documented checklist inside an HR case management system.

What counts as "willful"?

Oregon courts treat "willful" as voluntary nonpayment, not as bad faith. An employer that simply forgot or failed to follow up on the termination handoff with payroll can still be held to have willfully failed to pay. The takeaway: the penalty applies far more often than employers expect, and the only reliable defense is to pay on time.

SB 906: New Paystub Explanation Requirement (Effective January 1, 2026)

Governor Kotek signed SB 906 on May 28, 2025. Starting January 1, 2026, Oregon employers must give every new hire a written explanation of pay structure and deductions at the time of hire.

What does the explanation need to include?

• An overview of the employer's established pay period structure
• All applicable pay rates the employee may earn
• Each type of deduction the employee may see, including the legal basis for the deduction
• Any benefits or allowances reflected on the paystub
• Definitions of every payroll code used to categorize earnings, deductions, or other items

How can the explanation be delivered?

Employers may distribute the notice as a printed handout, an electronic file, a posting in a workplace location, or a website link. BOLI has published a template in English and Spanish that satisfies the content requirement.

What is the penalty?

BOLI may assess civil penalties up to $500 per violation under ORS 652.610. There is no private right of action, only BOLI can enforce, but a single onboarding mistake repeated across 100 hires creates a $50,000 exposure.

Implementation steps

A clean rollout typically includes:

• Adopting the BOLI template, in English and Spanish where applicable
• Adding the explanation to the new-hire onboarding packet
• Tracking acknowledgment in the HRIS so the employer can prove delivery
• Updating payroll-code documentation any time a new earning or deduction code is added

Oregon Equal Pay Act and Pay Transparency

The Oregon Equal Pay Act (ORS 652.220) is broader than federal law. It covers more protected classes, defines "comparable character" widely, and bans pay-history questions outright.

Which protected classes does Oregon's pay equity law cover?

Race, color, religion, sex, sexual orientation, national origin, marital status, veteran status, disability, and age. All are protected against pay discrimination for work of comparable character. That is a much wider list than the federal Equal Pay Act, which covers only sex.

Can Oregon employers ask about salary history?

No. Employers may not screen applicants based on current or past compensation, and may not set compensation for the position based on the applicant's pay history. The exception: when an existing employee transfers to a new role with the same employer, the employer may consider that employee's current pay.

What pay differentials are still allowed?

A pay differential is lawful only if the entire difference traces to one or more of these bona fide factors:

• A consistent seniority system
• A consistent merit system
• A system that measures earnings by quantity or quality of production
• Workplace location
• Travel that is regular and necessary for the role
• Education
• Training
• Experience

The system used to justify the differential must be consistent and verifiable, and it must have been in use at the time of the alleged violation. Oregon employers should run periodic pay equity audits using these factors as the framework. Mature compliance programs document audits as part of an end-to-end compliance program.

The safe harbor for equal pay analyses

ORS 652.235 provides a defense to compensatory and punitive damages for employers that have completed an equal-pay analysis within 3 years before the lawsuit. The analysis must be reasonable in scope, related to the protected class at issue, and accompanied by good-faith elimination of any unjustified disparities found.

Is salary-range posting required in Oregon?

Not yet. HB 2746 was introduced in the 2025 session to require pay scale information in job postings, but it did not pass. As of May 2026, Oregon does not mandate salary-range disclosures in job ads. ORS 659A.355 still bars retaliation against employees who discuss or disclose their wages, a protection that has been on the books for years.

Oregon Sick Time Law

ORS 653.606 requires every Oregon employer with at least one employee in the state to provide sick time. Whether it must be paid depends on employer size.

Who has to provide paid sick time?

• 10 or more employees (6 or more in Portland): Sick time must be paid.
• Fewer than 10 employees (fewer than 6 in Portland): Sick time may be unpaid, but it must still accrue and be available.

How does Oregon sick time accrue?

Employees accrue 1 hour of sick time for every 30 hours worked. FLSA-exempt salaried employees are presumed to work 40 hours per week for accrual purposes unless their actual workweek is shorter.

How much can employees use and carry over?

• Annual use cap: 40 hours per year
• Total accrual cap: 80 hours
• Carryover: Required, subject to the 80-hour total cap

Employers can avoid carryover entirely by frontloading at least 40 hours at the start of each 12-month period.

Permitted uses

Oregon sick time can be used for the employee's own illness, the illness of a family member, bereavement, parental leave (in narrow circumstances), domestic violence-related needs, public health emergencies, and any reason covered under OFLA. The list is broader than most state PSL laws.

No documentation requests for short absences

An Oregon employer may require reasonable documentation only when the employee uses paid sick time for more than 3 consecutive scheduled workdays. For absences of 3 days or fewer, the employer cannot demand a doctor's note.

Paid Leave Oregon (PLO): Contributions, Benefits, and Coordination

Paid Leave Oregon began paying benefits on September 3, 2023. It is a state-administered insurance program funded by employer and employee contributions, paying partial wage replacement for qualifying family, medical, and safe leave.

What is the 2026 contribution rate?

The total contribution rate for 2026 stays at 1% of subject wages. Employees pay 60% of the rate; large employers (25+ employees on average) pay 40%. Small employers (under 25 employees) are not required to pay the employer share but must still collect and remit the employee share.

What is the 2026 wage cap?

Contributions apply to the first $184,500 of an employee's annual wages, the same as the Social Security wage base for 2026.

What benefits does PLO pay?

• Qualifying reasons: bonding with a new child, family member's serious health condition, the employee's own serious health condition, domestic violence safe leave, and (since January 1, 2025) effectuating the legal process for foster placement or adoption.
• Duration: up to 12 weeks per benefit year, with up to 14 weeks for pregnancy-related disabilities.
• Maximum weekly benefit: $1,636.56 for benefit years starting on or after July 6, 2025 (this remains the maximum through 2026).
• Wage replacement formula: tiered, with lower-wage workers eligible for up to 100% replacement up to a fraction of the state average weekly wage.

Coordinating PLO with employer-provided paid time off

Since July 1, 2024, employees may use accrued employer paid time off in addition to PLO, so long as the combined benefits do not exceed the employee's full wage. Employers must allow this stacking and cannot force employees to choose one or the other.

Equivalent plans

Oregon employers can apply to operate an equivalent paid leave plan in lieu of participating in the state program. Equivalent plans must offer the same or greater duration, the same or greater wage replacement, and the same protected leave reasons. Approval comes from the Oregon Employment Department and must be renewed every 3 years.

Oregon Family Leave Act (OFLA) After the 2024 Realignment

SB 1515 (2024) reshaped OFLA effective July 1, 2024, eliminating duplicative coverage with PLO. The change is significant. Many old OFLA reasons are now covered exclusively by PLO.

What does OFLA still cover?

• Sick child leave: School or childcare closure due to a public health emergency
• Bereavement leave: Up to 2 weeks per family member, capped at 4 weeks per leave year
• Pregnancy disability leave: Time the employee cannot work because of pregnancy, childbirth, or related medical conditions

What did OFLA stop covering on July 1, 2024?

Parental bonding leave, the employee's own serious health condition leave, and care for a family member with a serious health condition all moved to Paid Leave Oregon.

Are OFLA and PLO concurrent?

No. Leave under OFLA is in addition to PLO and may not be taken concurrently with it. An employee with a school closure (OFLA) and a parental bonding need (PLO) gets both buckets.

Who is OFLA-covered?

Employers with 25 or more employees in Oregon during the previous calendar year (or current year). Employees qualify after working at least 180 calendar days for the employer and averaging 25 hours per week (different thresholds for different leave types).

Job protection and reinstatement

OFLA leave is job-protected. The employee returns to the same or an equivalent position with equivalent pay, benefits, and other terms. Holding the position open during a long PLO leave is the related obligation, since OFLA continues to provide reinstatement rights for many leave reasons that benefits flow through PLO.

Pregnancy and Lactation Accommodation in Oregon

HB 2341 (2019) expanded ORS 659A to require pregnancy accommodations from any Oregon employer with 6 or more employees, effective January 1, 2020.

What accommodations are required?

Reasonable accommodations for known limitations related to pregnancy, childbirth, or related medical conditions, including lactation, unless the accommodation creates an undue hardship. Examples include:

• Modified equipment
• Periodic rest
• Help with manual labor
• Modified work schedules
• A clean, private space (not a bathroom) for milk expression
• Reasonable break time for milk expression

Prohibited employer conduct

Oregon employers may not deny employment opportunities, refuse to accommodate, or retaliate against an applicant or employee because of pregnancy or because the worker requested an accommodation. The penalties match the rest of ORS 659A: back pay, front pay, compensatory damages, and attorneys' fees.

2025 expansion to agricultural workers

HB 2541, signed May 7, 2025, brought certain agricultural workers under the same milk-expression accommodation rules that apply in other industries. Farm employers should update break policies and physical workspace plans before the 2026 growing season.

Federal overlay

The federal Pregnant Workers Fairness Act (PWFA) and the PUMP for Nursing Mothers Act sit on top of Oregon's state requirements. Where the federal floor is higher, employers must meet the federal floor. Pregnancy discrimination prevention practices apply across both the federal and Oregon-specific frames.

Oregon Fair Workweek Act (Predictive Scheduling)

SB 828 (2017) was the country's first statewide predictive scheduling law. It targets large retail, hospitality, and food service employers.

Who is covered by Oregon's Fair Workweek Act?

Retail, hospitality, and food service employers with 500 or more employees worldwide. The size test counts every employee globally, not just Oregon employees, so a national chain hits coverage even if it has just one Oregon location.

What does the law require?

• Good faith estimate at hire: A median number of expected hours per month and other schedule expectations
• 14 days' advance written schedule: Posted in a conspicuous, accessible location
• Predictability pay: 1 hour of pay at the regular rate for added shifts or schedule changes; ½ hour of pay per hour subtracted from a posted shift
• 10-hour rest between shifts: Employees may decline back-to-back shifts that fall within 10 hours of each other and earn 1.5x for hours worked under that 10-hour gap
• Voluntary standby list: Optional, with strict notice and consent rules

Common violations

Posting a schedule on day 13 instead of day 14, calling employees in early without paying the predictability premium, and shaving end-of-shift hours after the schedule is posted all generate complaints. BOLI investigates and assesses penalties; employees can also recover damages directly.

Oregon Workplace Fairness Act and the 5-Year SOL

SB 726 (2019), expanded by SB 1586 (2022), is Oregon's primary harassment statute. The Workplace Fairness Act regulates non-disclosure agreements, non-disparagement clauses, and the limitations period for harassment and discrimination claims.

How long is the statute of limitations for discrimination claims in Oregon?

5 years from the date of the alleged unlawful practice. The extension applies to claims under ORS 659A.030 (race, color, religion, sex, sexual orientation, gender identity, national origin, marital status, age), ORS 659A.112 (disability), and ORS 659A.082 (veteran status). It is one of the longest in the country.

What can't employers include in settlement and separation agreements?

Under SB 1586 (effective January 1, 2023), an employer cannot require, as a condition of settlement or separation:

• A confidentiality provision covering the underlying harassment or discrimination claim
• A non-disparagement provision restricting the employee from discussing the conduct
• A no-rehire provision tied to the claim
• Confidentiality about the amount of or fact of any settlement

An employee may still request confidentiality. Employers must also provide a copy of their anti-discrimination policy when proposing a settlement or separation agreement.

Required policy elements

Every Oregon employer must adopt a written anti-discrimination policy that addresses sexual assault, harassment, and discrimination, names a person to receive complaints, and describes the procedure for reporting. Best-practice anti-discrimination programs pair the written policy with workforce training and a confidential intake channel. See our breakdown of the state of workplace harassment and a primer on quid pro quo harassment.

What constitutes harassment under Oregon law?

Oregon follows the same legal framework as Title VII for hostile-environment claims: severe or pervasive conduct based on a protected class that alters the conditions of employment. The EEOC harassment definition serves as the federal baseline, and Oregon's 5-year SOL gives complainants more time than most states to bring claims.

Training expectations

BOLI does not mandate harassment-prevention training, but it strongly recommends it and uses training records as one signal in evaluating employer good faith. Many Oregon employers run annual training, document attendance, and refresh it whenever the policy changes.

Oregon Discrimination Law (ORS 659A)

ORS 659A.030 is the core discrimination statute. It applies to employers with 1 or more employees. Oregon does not have a small-employer carve-out.

Protected classes under ORS 659A

• Race
• Color
• Religion
• Sex (including pregnancy, childbirth, breastfeeding, and related conditions)
• Sexual orientation (including gender identity)
• National origin (including ancestry)
• Marital status
• Age (18 and older)
• Expunged juvenile record
• Disability
• Veteran status
• Genetic information
• Performing duty as a servicemember

How does Oregon's age protection differ from federal law?

The federal ADEA protects workers age 40 and over. Oregon protects workers age 18 and over. That is a wider scope, and it produces a different set of cases. Younger employees who claim they were passed over because of age can still sue under state law.

HB 3187 and age-related hiring questions (effective January 1, 2026)

HB 3187 prohibits Oregon employers from requesting or requiring an applicant's age, date of birth, or graduation date before:

• The initial interview, or
• A conditional offer of employment if no interview occurs

Two narrow exceptions: when the information is required by another applicable law, or when it confirms a bona fide occupational qualification. Application forms, recruiting screens, and ATS workflows need to be reviewed and updated before the effective date.

Filing process and remedies

An employee can file a charge with BOLI's Civil Rights Division within 1 year, or file directly in court within the 5-year SOL. After HB 2957 (effective June 24, 2025), a BOLI dismissal no longer cuts off the longer SOL.

Retaliation Protections Under Oregon Law

Oregon has broad anti-retaliation protections that reach beyond ORS 659A.030. Different statutes carry different elements, but the general rule is consistent: an employer may not take an adverse employment action because an employee engaged in protected activity.

What activities are protected from retaliation?

• Filing a complaint with BOLI
• Making an internal complaint of discrimination, harassment, or unsafe conditions
• Discussing wages with co-workers (ORS 659A.355)
• Whistleblowing under ORS 659A.199 and ORS 659A.203
• Reporting suspected criminal activity
• Using sick time, OFLA, or PLO leave
• Cooperating in a workplace investigation
• Refusing to violate the law

Retaliation case patterns

Most retaliation cases in Oregon turn on temporal proximity (how quickly after the protected activity the adverse action occurred), changes in performance reviews or assignments, and inconsistent application of policies. Documenting decisions in real time, not after a complaint surfaces, is the single highest-impact practice. Programs that reduce retaliation typically combine training with structured intake and review. For specific tactics, see eight ways to prevent workplace retaliation.

Whistleblower hotline alone is not a defense

Oregon courts evaluate the actual operation of a complaint channel, not its existence. A buried hotline number on the back of a poster does not create a defense. Employers should review whether an open-door policy by itself is sufficient or whether structured intake is required.

Oregon Noncompete and Restrictive Covenant Law

ORS 653.295 is one of the strictest noncompete statutes in the United States. SB 169 (2021) shortened the maximum term to 12 months and turned noncompliant agreements from "voidable" to "void." SB 951 (2025) extended that approach to most healthcare practitioners.

What are the requirements for an Oregon noncompete?

All of these must be true:

• Notice: The employer must inform the employee in writing at least 2 weeks before the first day of employment that a noncompete is required, OR the noncompete must follow a bona fide advancement.
• Salary threshold: The employee's annual gross salary plus commissions at termination must exceed the BOLI-published threshold ($116,427 for 2025; $119,541 for 2026).
• Protectable interest: Trade secrets, confidential business information, or, for on-air talent, sensitive professional or financial information.
• Term cap: 12 months from termination. Anything longer is void.
• Written copy after termination: The employer must provide a signed, written copy of the agreement within 30 days of termination.

The garden-leave alternative

Employers can enforce a noncompete that does not meet the salary threshold by paying the greater of 50% of the employee's annual base salary plus commissions at termination, or 50% of the BOLI-published threshold, for the entire term of the agreement.

SB 951 (2025): Healthcare noncompetes

Effective for agreements entered into or renewed after September 26, 2025, SB 951 voids noncompetition, nondisparagement, and nondisclosure agreements with "medical licensees" (Oregon-licensed physicians, nurse practitioners, physician associates, and naturopathic medicine practitioners). HB 3410 amended SB 951 to apply the limitations to certain pre-existing agreements as well.

A narrow exception preserves enforceability for licensees who own at least 1.5% of the employer (or 10% in physician-owned structures, depending on entity type). The law also targets management services organizations (MSOs) and certain hospital-affiliated entities, restricting the use of restrictive covenants in private equity-backed physician practices.

Bonus restriction agreements

ORS 653.295(2) covers a separate "bonus restriction agreement," a clawback or forfeiture tied to post-employment competition. These have their own rules and are easier to enforce than full noncompetes when properly drafted.

Customer non-solicitation and trade-secret agreements

ORS 653.295 explicitly excludes covenants that protect against the solicitation of customers, the solicitation of employees, or the disclosure of trade secrets, provided the covenant is reasonable in scope. These remain a workable tool for Oregon employers when a full noncompete is not enforceable.

SB 426: Owner and Contractor Wage Liability (Effective January 1, 2026)

Governor Kotek signed SB 426 on June 9, 2025. The law takes effect January 1, 2026 and creates strict joint and several liability up the construction chain.

Who is liable?

Property owners and direct contractors are jointly and severally liable for unpaid wages owed to "unrepresented employees" (workers not covered by a collective bargaining agreement) of a direct contractor or any subcontractor at any tier, even after the owner or direct contractor paid the chain in full.

What is the pre-suit notice requirement?

Before filing suit, the unrepresented employee must send written notice describing the alleged wage violation to the property owner and direct contractor by certified mail. The recipients have 21 days to cure the violation. If they do not cure, the employee can file suit.

What is excluded?

• Workers covered by a collective bargaining agreement that includes a binding wage-recovery process
• Projects involving 5 or fewer residential or commercial units on a single tract of land
• Projects involving the construction, reconstruction, alteration, maintenance, moving, or demolition of an owner's primary residence

Practical compliance steps

Owners and direct contractors should add the following to subcontractor agreements before January 1, 2026:

• Indemnification provisions covering wage claims by sub-tier employees
• Audit and inspection rights for payroll records
• Bonding or guarantee requirements for subcontractors
• Withholding rights tied to payroll-record certifications
• Termination rights for noncompliance with wage payment requirements

Hiring Rules: Ban the Box, Background Checks, and Salary History

What does Oregon's ban-the-box law require?

ORS 659A.360 makes it unlawful to exclude an applicant from the initial interview because of a past criminal conviction. Specifically, an employer may not require disclosure of conviction history on the application or before the initial interview. If no interview occurs, the employer may not require disclosure before a conditional offer.

When can criminal history be considered?

After the initial interview. The statute does not prohibit the employer from considering convictions in making a hiring decision. It only restricts when the inquiry occurs.

Who is exempt from ban-the-box?

• Employers required by federal, state, or local law to consider criminal history
• Law enforcement agencies
• Employers in the criminal justice system
• Volunteers

Background check best practices in Oregon

Oregon employers running background checks must comply with the federal Fair Credit Reporting Act (FCRA): standalone disclosure, written authorization, pre-adverse action notice with a copy of the report, and adverse action notice. State court records and conviction records have their own access rules. Background investigation reasons and structure apply just as much to Oregon hiring as to other states.

Salary history ban

Already covered under the Equal Pay Act discussion above. Oregon prohibits salary-history questions in screening and prohibits using salary history to set compensation.

Reference checks

Oregon allows reference checks but does not specifically immunize previous employers who provide truthful, job-related information. Employers giving references should stick to facts and document the source. Employers receiving references should treat hearsay carefully and avoid letting a single negative reference dominate a hiring decision without corroborating evidence.

Off-Duty Conduct: Cannabis, Social Media, and Lawful Activities

Does Oregon protect off-duty cannabis use?

Largely no. Recreational cannabis is legal in Oregon, but employers retain the right to prohibit on-the-job use, conduct drug testing, and discipline or terminate employees for positive cannabis tests. There is no general off-duty cannabis use protection under state employment law as of 2026.

Medical cannabis use does not provide an automatic employment defense either. Multiple legislative attempts (SB 301 in 2017, HB 3428 in 2023) have failed to enact broader protections.

What about social media and political activity?

ORS 659A.330 prohibits employers from requiring or requesting employee personal social media account access (passwords, usernames, or required friend connections). Employers may still discipline employees for off-duty conduct that affects the workplace, but the line is more nuanced when the conduct involves political speech or protected concerted activity under the National Labor Relations Act. Drafting a clear, lawful social media policy matters here.

Political conversations and election season

Oregon employers should also expect to manage workplace tension around politics. Practical guidance on handling workplace incivility during election cycles and managing political conversations at work applies directly to Oregon's often-polarized work environments.

Independent Contractor Classification in Oregon

Oregon does not run a single classification test. Different agencies apply different tests to the same worker, which creates room for the same person to be an "employee" for one agency and an "independent contractor" for another.

Which test applies to which agency?

• Department of Revenue, Employment Department, Construction Contractors Board, Landscape Contractors Board: the ORS 670.600 statutory test
• Civil Rights Division, Workers' Compensation Division: the common law right-to-control test
• BOLI Wage and Hour Division: the common law economic realities test (the same test federal courts use under FLSA)

What does ORS 670.600 require?

An independent contractor must be free from direction and control over the means and manner of providing services, customarily engaged in an independently established business, and licensed where licensing applies. To establish that a worker is "customarily engaged in an independently established business," at least 3 of these 5 must be true:

• Significant investment in the business
• Authority to hire others
• Multiple contracts in the same trade or business
• Use of facilities the worker provides
• Bearing the risk of loss

Why misclassification is expensive

A misclassified worker can trigger unpaid minimum wage claims, overtime claims, sick time accrual, PLO contributions, unemployment insurance, workers' compensation premiums, and tax liabilities. The 5-year SOL for many ORS 659A claims means the back-pay window is wide. Treat 1099 status as an evidence-driven conclusion, not a contract-driven one.

Mass Layoffs and the Federal WARN Act in Oregon

Oregon does not have a state-specific WARN statute. Federal WARN applies, and ORS 285A.516 requires that the federal notice also be filed with the Oregon Higher Education Coordinating Commission Dislocated Worker Unit.

When does WARN apply?

• Plant closing: Permanent or temporary shutdown of an employment site (or one or more facilities or operating units within a site) resulting in employment loss for 50 or more employees during a 30-day period
• Mass layoff: A reduction in force at a single site causing employment loss in any 30-day period of (a) 500+ employees, or (b) 50 to 499 employees if they constitute at least 33% of the active workforce

Notice requirements

60 calendar days' advance written notice to:

• Each affected employee
• Any union representative
• The Oregon Higher Education Coordinating Commission Dislocated Worker Unit
• The chief elected official of the local government in the affected jurisdiction

Penalty for noncompliance

Back pay and benefits to each affected employee for each day notice was lacking, up to 60 days. Civil penalties of up to $500 per day of violation can also apply at the local government level.

Workplace Safety: Oregon OSHA and Heat Illness

What is Oregon OSHA?

Oregon operates a state-plan OSHA program (Oregon OSHA, part of the Department of Consumer and Business Services). Oregon OSHA enforces standards that are at least as effective as federal OSHA, and in some areas more stringent.

Heat illness rule

OAR 437-002-0156 (general industry) and OAR 437-004-1131 (agriculture) require employers to provide:

• At least 32 ounces of cool drinking water per hour at no cost
• Adequate shade access when the heat index reaches 80°F
• Mandatory cool-down rest breaks at certain temperature thresholds
• Acclimatization plans for new and returning employees
• Written heat illness prevention plan
• Annual training

Wildfire smoke rule

OAR 437-002-1081 requires employers to take protective action when the Air Quality Index reaches 101 (unhealthy for sensitive groups). Required steps escalate as the AQI rises and may include providing N95 respirators, modifying work schedules, and relocating work indoors.

Reporting workplace fatalities and serious injuries

Oregon OSHA requires:

• Fatality: Report within 8 hours
• Hospitalization, amputation, or loss of an eye: Report within 24 hours
• Recordable injuries: Logged on OSHA 300 forms; serious injuries also reported through Oregon's reporting portal

Required written safety programs

Oregon OSHA expects most employers to have a written safety program that includes hazard assessment, training, periodic inspections, and recordkeeping. Specific industries (construction, agriculture, healthcare) layer on additional written program requirements.

Workers' Compensation in Oregon

Oregon requires nearly every employer to carry workers' compensation coverage from the first hour the first employee starts work. Coverage is administered through SAIF Corporation (the state-chartered insurer), private insurers, or qualified self-insurance.

What benefits does workers' comp cover?

• Medical care for the work injury
• Time-loss wage replacement
• Permanent partial or permanent total disability awards
• Vocational rehabilitation when the injury prevents return to the at-injury job
• Death benefits to dependents

Reporting deadlines

Employees must report a work injury to their employer as soon as practicable. Employers must file Form 801 (the Worker's and Employer's Report) with their insurer within 5 business days of knowledge of the claim.

Retaliation protection

ORS 659A.040 protects employees who file workers' compensation claims from termination or other retaliation. Reinstatement and restoration rights apply when the employee is medically released to return.

Recordkeeping Requirements for Oregon Employers

Oregon recordkeeping is layered. BOLI rules add to federal requirements and several recent statutes have expanded retention windows.

What records do Oregon employers need to keep?

• Time and pay records: 3 years (BOLI), 4 years (IRS), 5 years (Oregon Equal Pay Act analysis)
• Sick time accrual and use: 3 years
• Meal break records: Per OAR 839-020-0050, must show whether the meal period was provided
• Wage statements: Issued each pay period; retained 3 years
• I-9 forms: 3 years after hire or 1 year after termination, whichever is later
• Workers' comp records: 5 years
• OSHA 300 logs: 5 years
• Investigation files: Often retained 5+ years to align with the 5-year SOL on discrimination claims

Investigation records best practice

When an investigation closes, the file should include intake details, witness statements, evidence summaries, the investigator's findings, and the corrective action taken. Centralized storage avoids the most common audit failure: scattered records across multiple managers' email inboxes. A complete investigation report contains specific elements that hold up in BOLI proceedings.

Personnel records access

ORS 652.750 gives current and former employees the right to inspect their personnel records. Employers must respond to a written request within 45 days and provide a certified copy upon request. Charging unreasonable fees for copies, or refusing to produce records that exist, generates BOLI complaints.

Oregon Enforcement Agencies and Where to File

Knowing which agency handles which issue saves time and shapes strategy.

• Bureau of Labor and Industries (BOLI): Wage and hour, civil rights enforcement, prevailing wage, apprenticeship, technical assistance for employers (and the new Employer Assistance Division under HB 2248).
• Oregon OSHA (DCBS): Workplace safety enforcement, complaints, inspection rights.
• Oregon Workers' Compensation Division (DCBS): Workers' comp coverage, claims, retaliation complaints.
• Oregon Employment Department: Unemployment insurance, Paid Leave Oregon administration, wage records used in unemployment claims.
• Higher Education Coordinating Commission (HECC) Dislocated Worker Unit: Federal WARN notices.
• Oregon Department of Justice: Civil rights enforcement coordination, charitable trust enforcement.

BOLI process at a glance

For wage claims: file the BOLI Wage Claim Form, BOLI investigates, may issue a determination, and may bring an enforcement action or refer to the Department of Justice. For civil rights claims: file a verified complaint with the Civil Rights Division within 1 year, BOLI investigates, and issues a substantial evidence determination or no-cause finding.

After HB 2957

Effective June 24, 2025, an HB 2957 right-to-sue letter no longer cuts off the longer underlying SOL. The framework varies based on whether BOLI investigated and what it found. Review the bill's timing rules carefully before assuming a 90-day clock.

Other Required Leaves Oregon HR Teams Track

Beyond OFLA and Paid Leave Oregon, Oregon law layers in a set of smaller leave entitlements. Each one applies to a different employer size and triggers different documentation rules.

Domestic violence leave (ORS 659A.270 to 659A.290)

Oregon employers with 6 or more employees must allow reasonable leave for victims of domestic violence, sexual assault, stalking, harassment, or bias crimes to:

• Seek legal or law enforcement assistance
• Receive medical treatment
• Obtain counseling or services from a victim services provider
• Relocate or take other steps to secure a safe home or work environment

The leave can be paid (using sick time) or unpaid. Reasonable safety accommodations, including modified schedules, transferred work locations, and changed phone numbers, are also required when feasible.

Crime victim leave (ORS 659A.190 to 659A.198)

Employers with 6 or more employees must allow leave for an employee or family member who is a victim of a crime to attend criminal proceedings. The leave is unpaid unless paid time is available, and the employee must give reasonable notice and provide documentation if requested.

Jury duty leave (ORS 10.090)

An Oregon employer cannot discharge, threaten, or coerce an employee for serving on a jury. The leave is unpaid for most employees (some employers voluntarily continue pay during jury service). The employee must keep their job and benefits available during the period of service.

Voting leave

Oregon votes by mail. There is no specific state-mandated voting leave because the vote-by-mail system gives every voter ample time. Employers should still allow accommodations for employees experiencing barriers to mailing or returning a ballot.

Military leave (ORS 659A.082 and USERRA)

Oregon's military leave protections track and in some cases exceed federal USERRA. Reemployment rights, accrual protections, and discrimination protections apply to members of the Oregon National Guard and reserves. Discrimination based on uniformed-service status is prohibited under ORS 659A.082, with the same 5-year SOL as other ORS 659A claims.

Bone marrow donation leave (ORS 659A.312)

Employers with 20 or more employees must allow up to 40 hours of leave for a bone marrow donation procedure. The leave can be paid or unpaid depending on employer policy.

Wage Deductions and Pay Practices in Oregon

ORS 652.610 and related rules limit what an Oregon employer can deduct from a paycheck. SB 906 (the new paystub-explanation requirement) ties directly into these rules.

What deductions are allowed?

• Deductions required by law (taxes, garnishments, child support orders)
• Deductions authorized by a collective bargaining agreement
• Deductions authorized in writing by the employee for the employee's benefit (insurance premiums, retirement contributions, charitable contributions)
• Deductions for cash advances or loans, if authorized in writing and limited to the amount actually advanced
• Deductions for uniforms, tools, or equipment in narrow circumstances and only with written authorization

What deductions are not allowed?

• Cash register shortages
• Property damage (with very limited exceptions)
• Returned checks or bad customer payments
• Cost of business operations (uniforms required by the employer in many cases)

Wage statement contents

Each pay period, the wage statement must show:

• Gross wages earned
• Net wages paid
• Itemized deductions
• Pay rate(s) and hours worked at each rate
• Overtime hours and rate
• Beginning and ending dates of the pay period
• Employer's name, address, and ID
• Employee's name and ID

Missing or inaccurate wage statements expose the employer to BOLI penalties. After January 1, 2026, the SB 906 explanation requirement adds another layer at the front end of employment.

Disability and Religious Accommodation

Disability accommodation under ORS 659A.112

Oregon employers with 6 or more employees must provide reasonable accommodation to qualified individuals with disabilities, unless doing so creates an undue hardship. The standard tracks the federal ADA in most respects but applies to smaller employers (the ADA threshold is 15 employees).

The interactive process is critical. Document the request, the conversation, the accommodations explored, and the decision. The pattern that produces lawsuits in Oregon is the request that gets ignored or routed through three managers without a clear conclusion.

Religious accommodation under ORS 659A.030

Employers must reasonably accommodate religious observance and practice unless the accommodation would impose an undue hardship on the conduct of the business. After the U.S. Supreme Court's decision in Groff v. DeJoy (2023), the federal undue hardship standard is now meaningfully higher (substantial increased costs in relation to the conduct of the business). Oregon courts use a similar analysis.

Common accommodation issues

• Schedule modifications for religious observance
• Dress code or grooming policy adjustments
• Service dog access
• Modified duties for medical limitations
• Remote work as an accommodation
• Leave beyond standard PTO/sick time

Workplace Violence Prevention in Oregon

Oregon does not have a single comprehensive workplace violence prevention statute (the way California enacted SB 553). Multiple Oregon laws and Oregon OSHA general duty obligations together cover the same ground.

What does the general duty clause cover?

Oregon OSHA can cite an employer under the general duty clause for failing to address a recognized workplace violence hazard. Healthcare, retail, social services, and late-night operations face the highest risk and the most attention.

Healthcare workplace violence rule

Oregon has specific workplace violence prevention requirements for hospitals and certain healthcare settings. Required elements include hazard assessment, training, incident reporting, and post-incident response.

Restraining order accommodations

Under the domestic violence leave statute, employers must consider safety accommodations including changes to work schedules, work locations, telephone numbers, and physical workspace barriers when an employee has a restraining order or credible safety concern.

Building a workplace violence prevention plan

Even without a unified statute, Oregon employers benefit from a written workplace violence prevention plan that includes:

• Hazard assessment
• Reporting procedures
• Investigation protocol
• Threat assessment team
• Training
• Incident logs
• Post-incident response

A formal program also serves as evidence of due diligence in negligent-hiring or negligent-retention claims. Recognizing toxic workplace patterns is closely related, since many violence incidents follow a long arc of escalating incivility.

SB 916: Unemployment Benefits for Striking Workers

Governor Kotek signed SB 916 on June 24, 2025. It made Oregon the first U.S. state to extend unemployment insurance benefits to both private and public sector employees on strike.

How the benefit works

A striking worker may collect up to 10 weeks of unemployment benefits during a strike. Standard unemployment eligibility otherwise applies, including the requirement that the worker meet base-period earnings thresholds and be able and available for work.

Implications for employers

SB 916 does not change the underlying labor law framework, but it changes the economic incentives during a strike. Employers facing organizing campaigns or contract negotiations should expect longer strike durations and plan accordingly.

How AllVoices Helps Oregon HR Teams Comply

Oregon's breadth of obligations, from PLO eligibility tracking to Workplace Fairness Act-compliant complaint handling to noncompete documentation, pushes HR teams to centralize. AllVoices is an employee relations platform built for the workflows that touch all of this.

Intake that respects Oregon's anti-retaliation rules

Employees can submit harassment, discrimination, wage, retaliation, or safety reports anonymously or with name attached. Anonymity supports the discussion-of-wages protections under ORS 659A.355 and the broader retaliation protections under ORS 659A.030, ORS 659A.199, and ORS 659A.203, without the false promises that come with traditional anonymous tip lines. Anonymous feedback as a culture-building tool works only when paired with clear case management.

Case management that produces Oregon-defensible records

Every report, witness statement, evidence file, and decision lives in a single case record. When a 5-year-old harassment claim under ORS 659A.030 surfaces, the file is intact. A dedicated HR case management workflow produces the kind of audit trail BOLI investigators expect.

Vera AI for early signal

Vera, the AllVoices AI agent, surfaces patterns across cases. Repeat respondents, concentrated complaint sources, or recurring policy issues, before they become 5-year-old class claims. Applying AI to employee relations is increasingly central to large-employer compliance programs.

Integrations with the systems Oregon employers already use

AllVoices integrates with Workday, Rippling, Paylocity, ADP, BambooHR, and other HRIS platforms. Employee status changes, terminations, and reporting hierarchies flow into case management without duplicate data entry, which is critical for the Workplace Fairness Act's record-keeping expectations.

Investigation rigor

Built-in templates for intake, interview notes, evidence, and findings keep investigators consistent. Oregon's 5-year SOL means consistency matters across years and across investigators. Teams that follow workplace investigation best practices avoid the most common defects in BOLI investigations.

Reporting that pulls insights out of casework

Standard reports show open cases, time-to-resolution, complaint categories, and trends across teams or locations. Oregon HR teams that track employee relations KPIs get to risk patterns earlier and present clear data to leadership and the board.

Frequently Asked Questions About Oregon Labor Laws

Does Oregon have a state-specific minimum wage?

Yes, three of them. The Portland metro rate, the standard rate, and the non-urban rate. Each adjusts every July 1 based on the Consumer Price Index for All Urban Consumers, West Region. The current rates run through June 30, 2026; new rates take effect July 1, 2026.

How long do Oregon employers have to give a final paycheck?

It depends on how the employment ended. End-of-next-business-day for a discharge. Immediately for a quit with 48+ hours' notice. Within 5 business days or the next regular payday for a quit without notice. ORS 652.140 has the full rules.

What is the statute of limitations for harassment claims in Oregon?

5 years from the date of the alleged unlawful practice for claims under ORS 659A.030, ORS 659A.112, and ORS 659A.082. The Oregon Workplace Fairness Act extended the SOL from 1 year to 5 years effective September 29, 2019.

Are Oregon noncompetes enforceable?

Sometimes. The agreement must meet ORS 653.295: proper notice, salary above the BOLI threshold ($119,541 for 2026), protectable interest, 12-month maximum, and a written copy delivered within 30 days of termination. SB 951 (2025) makes most noncompetes with healthcare practitioners void.

Do Oregon employers have to provide paid sick leave?

Yes if the employer has 10 or more employees (6 or more in Portland). Smaller employers must provide sick time but it can be unpaid. All employers, even those with one employee, must allow accrual of 1 hour per 30 hours worked.

What is Paid Leave Oregon?

A state-administered insurance program that pays up to 12 weeks (14 for pregnancy disability) of partial wage replacement for family, medical, and safe leave. The 2026 contribution rate is 1% of subject wages on the first $184,500 of annual earnings. Maximum weekly benefit is $1,636.56.

When does Oregon's ban-the-box law apply?

ORS 659A.360 applies to most Oregon employers. The rule: no criminal-history disclosure on the application or before the initial interview. After the interview, the employer can ask and consider conviction history. Law enforcement, criminal justice employers, and roles where another law mandates a check are exempt.

What changed with OFLA in 2024?

SB 1515 (2024) eliminated overlap between OFLA and PLO. Effective July 1, 2024, parental bonding leave, the employee's own serious health condition, and family member care all moved exclusively to PLO. OFLA still covers school-closure sick child leave, bereavement leave (up to 4 weeks per year), and pregnancy disability leave.

The Bottom Line

Oregon employment law in 2026 rewards centralization. The 5-year SOL, the layered leave architecture, the 3-tier minimum wage, the next-business-day final pay rule, and the new January 1 obligations all reward HR teams that have one source of truth for handbooks, complaint files, and time records.

The 2026 priorities for Oregon HR teams:

• By January 1, 2026: Roll out the SB 906 paystub explanation to every new hire; update applications and ATS to remove pre-interview age questions per HB 3187; review subcontractor agreements and indemnification language for SB 426 wage liability.
• By July 1, 2026: Update payroll systems for the new minimum wage rates (Portland metro $16.80, standard $15.55, non-urban $14.55); confirm Fair Workweek schedule postings hit the 14-day window every cycle.
• Throughout 2026: Audit pay equity under ORS 652.220; review healthcare-practitioner agreements for SB 951 compliance; document handling of every complaint with retention windows that reach 5+ years.
• Ongoing: Train managers on retaliation protections, the OFLA/PLO coordination rules, the 5-year SOL, and the BOLI right-to-sue framework after HB 2957.

For Oregon teams that want to consolidate complaint intake, investigations, and case records under a single system, see how AllVoices structures employee relations for state-by-state compliance.