Miller Nash LLP

1

GENERAL PRINCIPLES

Forums For Adjudicating Employment Disputes

Employment-related claims can be asserted in state or federal courts or administrative agencies, including the Oregon Bureau of Labour and Industries (BOLI) and the U.S. Equal Employment Opportunity Commission (EEOC). Certain claims based on federal law must first be filed with the EEOC before they can be filed in court. Unlike many other states, Oregon does not require an employee who wants to bring employment claims against their employer to exhaust their administrative remedies by first filing a complaint with BOLI before filing a state law civil lawsuit. BOLI, which investigates complaints at no charge, handles two main types of complaints: civil rights complaints and wage and hour complaints. Each has a separate process and separate forms. Historically, if an employee filed a BOLI complaint and BOLI issued its determination, or if one year has passed from the date a complaint was filed, BOLI would issue a notice of the employee’s right to sue (commonly referred to as a “right to sue letter”). The complainant would then have 90 days from the date of the right-to-sue letter to file a lawsuit. This was the case regardless of the amount of time remaining on the statute of limitations associated with the asserted claims and irrespective of BOLI’s determination or closure letter. Because many state law employment claims are governed by a five-year statute of limitations, the 90-day BOLI statute of limitations had the effect of shortening the statute of limitations for many claims. Please see the answer to question 47 for more information regarding the impact of BOLI determinations on the statute of limitations following Oregon’s enactment of House Bill 2957, which amended ORS 659A.880 and ORS 659A.830.

Employees and employers may agree to have employment disputes adjudicated in private arbitration, but Oregon has statutory and formal requirements that must be followed to do so. See, e.g., Or. Rev. Stat. ch. 36. Also, there is an argument (based on Oregon law) that the Oregon statute may be pre-empted by the Federal Arbitration Act, 9 U.S.C. §§ 1-16, so local counsel should be consulted.  


The Main Sources Of Employment Law

The main sources of employment law are federal and Oregon state statutes, regulations, agency interpretations, and judicial interpretations. State employment statutes include Oregon Revised Statutes (ORS) chapter 659A (which includes most employment discrimination laws), the Oregon’s minimum wage and overtime law (ORS chapter 653), Oregon’s laws on payment of wages and deductions (ORS chapter 652), workers’ compensation statutes (ORS chapter 656), various leave laws (ORS chapter 659A), and whistleblower protection laws (ORS chapter 659A). (Note: In 2018, Oregon expanded its whistleblowing protections to allow employees to more easily report alleged mismanagement, waste, fraud, and abuse.)

Additional restrictions on employment conditions can be created by agreement between employers and employees, or by collective bargaining agreements (CBAs) between labour unions and employers. Employee handbooks can also sometimes create binding agreements between employers and employees.


National Law And Employees Working For Foreign Companies

Federal and Oregon state law will typically apply to employees who work in Oregon, regardless of the employer or employee’s nationality.


National Law And Employees Of National Companies Working In Another Jurisdiction

Federal law applies to most employees working in the United States (U.S.) and, in some circumstances, to employees outside of the U.S. for U.S.-based companies or government agencies. Oregon law may also apply to employees working elsewhere for Oregon-based companies depending on the circumstances—and in certain instances, the employee can be protected by both Oregon and the law of the state in which they work.


Data privacy

Oregon employers may monitor employees with cameras or videos in public work areas. Employers may also monitor an employee’s work computer and email. It is best practice to inform employees of workplace monitoring in advance and may be a mandatory subject of bargaining if the workforce is unionised/represented. 

Oregon employers must safeguard an employee’s confidential information under the Oregon Consumer Identity Theft Protection Act, which includes limiting employers to the public display or disclosure of only the last four digits of a Social Security number, among other requirements.

Note: The Oregon Consumer Privacy Act, ORS 646A.570 to ORS 646A.589, Oregon’s new state consumer privacy law, which became effective July 1, 2024, does not generally apply to certain classes of data, including employment-related information.

Oregon law prohibits recording of private communications without the prior consent of the employee, with limited exceptions for telephone conversations.
Likewise, employers cannot request or require that an employee or job applicant grant them access to social media accounts (unless, of course, the employee is managing the organization’s social media properties). It is also unlawful for an employer to require an employee or applicant to establish or maintain a personal social media account or to require employees to advertise on their personal social media account. See ORS 659A.330.

2

HIRING THE EMPLOYEE

Legal Requirements As To The Form Of Agreement

There are no other legal formal requirements for an employment agreement than common-law contract principles, including offer, acceptance, and consideration. However, certain employment terms, such as a post-employment covenant not to compete, may be subject to Oregon statutory requirements that it be in a written agreement, as well as other requirements addressed at “Restricting Future Activities” below. Absent an agreement that states otherwise, employment in Oregon is “at-will”, which means that either party may end the employment relationship at any time, for any reason (so long as the reason is not prohibited by law), with or without cause or notice.


Mandatory Requirements
  • Trial Period

    • Employers are not required to provide employees with a trial or probationary period, although they may do so.

  • Hours Of Work
    Generally, hours of work are not regulated. There are laws, however, that restrict the number of hours and times that minors may work. ORS 653.305 – ORS 653.403. Also, employees who work more than 40 hours in a week must be paid overtime unless they are exempt. Oregon’s exempt tests may slightly differ from federal law as well. Exemptions are stated in ORS 653.020 and OAR 839-020-0005.

    Maximum hours of work in certain industries are also regulated by federal and Oregon law. For example, employees in “manufacturing” (which is broadly defined) may not be required to work more than 55 hours per workweek or 13 hours in a single day, including three hours of overtime, and are entitled to overtime for any hours worked in excess of 10 per day (ORS 652.020).

  • Special Rules For Part-time Work

    • Oregon employers must compensate all “hours worked.” BOLI’s guidance clarifies what Oregon’s wage and hour laws to consider to be paid time. https://www.oregon.gov/boli/workers/pages/paid-time.aspx. [Note: Recently, the U.S. District Court for Oregon issued a ruling that Oregon’s law about tracking and rounding work hours was different than federal law. While the U.S. Department of Labor DOL allows a more permissive “rounding” approach under the Fair Labor Standards Act, Oregon requires that employees be paid for all hours worked. While employers may apply a rounding system to the times when employees clock in and out, employers also need to implement precautions to ensure employees are getting paid for all work time each pay period. For example, employers could use a rounding system and adjust hours at the end of each pay period to capture hours worked that may have been excluded by the rounding system. Alternatively, employers could adopt a rounding system that always rounds hours in the employee’s favor.]

  • Earnings

    • Oregon’s minimum wage depends on the location of the employee, with special rules for employees who may work in multiple areas due to travel for their job. For July 1, 2025, through June 30, 2026, the standard minimum wage is $15.05 an hour, $16.30 for the Portland metropolitan area (including Clackamas, Multnomah, and Washington Counties), and for “nonurban counties” $14.05 an hour. Minimum wages increase on 1 July each year. A table and interactive map with the full information about the various minimum wages and locations is published by BOLI on the “Oregon Minimum Wage” webpage.

    Note: Minimum wage is expected to increase on July 1, 2026, following the same three-tiered system that has been in place since 2016 based on the increase to the average annual rate of inflation, calculated at the end of April by BOLI. The current federal minimum wage remains $7.25 per hour. 

    For a minimum wage employee whose work period or workday straddles June 30 and July 1, there will be two different rates of pay. The hours worked on or after 12:01 a.m. on July 1 must be paid at the newest applicable rate.

  • Holidays/Rest Periods
    Oregon requires an employer to provide eligible veterans with paid or unpaid time off for Veterans Day in recognition of their national service. [Note: Oregon law requires that public employers grant certain preferences in the hiring and promotion of veterans and disabled veterans.] By law, an employee must give notice and proof-of-service documentation, such as a DD 214, Certificate of Release or Discharge from Active Duty, to their employer at least 21 days in advance of Veterans Day. Employers must respond to time-off requests at least 14 days before the holiday, confirming explicitly if time off will be granted and whether it will be paid or unpaid. If the request is denied due to hardship, the employer must allow the employee an alternative day off within the year after the Veterans Day on which the employee worked as a replacement for Veterans Day to honor the employee’s service. Whether the time off is paid or unpaid is at the discretion of the employer.

    Otherwise, there is no legal requirement for employees to receive or take holidays or vacations. Many employers choose to provide full time employees with a certain number of unpaid personal or vacation days per year by agreement. The number of personal days or vacation days available to an employee commonly increases with the number of years of employment.

    Under Oregon law, rest and meal breaks are mandatory for most employees, unless they are exempt. The time and duration of these breaks depend on the working time of the employee. There are very limited exceptions to the meal break requirement, including a hardship exception that requires specific documentation. 

    Note: In 2023, the Oregon Legislature passed HB 2697, which made significant changes to Oregon’s hospital staffing law. Hospitals have always been required to provide their employees with rest breaks and meal periods, but ORS 653.261 limited BOLI’s jurisdiction when the rest and meal periods for certain hospital staff were subject to provisions of a CBA. HB 2697 updated ORS 653.261 and created ORS 653.258, which expressly allows BOLI to enforce rules regarding meal periods and rest periods for almost all hospital “employees.” ORS 653.258 became operative on June 1, 2025. 

  • Minimum/Maximum Age

    • Children under 14 are generally prohibited from employment. Employers who employ minors 14 through 17 years of age must follow Oregon’s child labour laws, in addition to other employment laws. Those seeking to employ minors must apply to BOLI for an Annual Employment Certificate from the state of Oregon. The Annual Employment Certificate Application is available on BOLI’s website. (Employment of minors under 14 requires an additional permit.) Employers must also verify the age of each minor hired from an appropriate proof-of-age document, maintain a list of all minors employed, and comply with all federal and state child-labour laws. BOLI sends renewal notices to employers approximately six weeks before the expiration of an annual certificate. If an employer changes the work duties of minors at any time, the employer must fill out a “Notice of Change (to Annual Employment Certificate)” form and send it to BOLI for approval.

    There are no maximum age limits. Employers may not discriminate against employees who are over 18 years of age. Significantly, Oregon law is more protective than the federal Age Discrimination in Employment Act of 1967, which prohibits employment discrimination against persons 40 years of age or older in companies with 20 or more employees.

    Please see Question 20 below regarding new constraints on age-related hiring questions and increased age discrimination protections for apprentices.

  • Illness/Disability

    • Numerous federal and Oregon laws pertain to ill and injured workers, including the Family and Medical Leave Act of 1993 (FMLA), Oregon Family Leave Act of 1995 (OFLA), Americans with Disabilities Act of 1990 (ADA), Oregon’s “mini-ADA”, state and federal anti-discrimination laws, and workers’ compensation laws.

    Oregon has a paid family and medical leave program, known as Paid Leave Oregon (PLO). Paid Leave Oregon is a mandatory statewide insurance program that provides qualifying employees with state wage replacement benefits for time off from work needed to give or receive care. On January 1, 2025, Paid Leave Oregon was expanded to include “pre-placement leave.” Eligible employees planning to adopt or foster a child can take this type of leave. This new leave allows employees to take time off before an adoption or foster care placement for activities such as: counseling sessions, court appearances, legal consultations, physical examinations, home studies, related travel to another state or country, and other tasks essential to completing an adoption or foster placement.

    [Note: Some qualifying reasons for PLO and OFLA can overlap but they do not run together. Additionally, PLO does not cover bereavement, sick child leave (when the child does not have a serious health condition) or military family leave and it does not cover leave for less than a full day, so a cautious employer should check employee rights under OFLA.]

    [Note: PLO protects an employee’s job and role if they’ve worked for the same employer for at least 90 consecutive days.]

    All employers must withhold contributions from employees’ wages. Unless an employer has an approved equivalent plan, these benefits are funded by premiums deducted from employees’ wages, with contributions from “large employers” (those with 25 or more employees working within or outside Oregon), and are administered by the Oregon Employment Department (OED). All employers must protect employees’ jobs and positions if the employee has been employed for more than 90 consecutive days.

    Oregon employees are eligible for benefits if they have earned at least $1,000 in wages in Oregon in the prior benefit year. PLO provides employees with partial wage replacement benefits for up to 12 weeks in the event of the birth/adoption/foster placement of a child, when the employee is seriously ill or needed to care for an ill family member, or when leave is needed due to domestic violence, sexual assault, harassment, bias, or stalking (this latter category is known as “safe leave”). In some pregnancy-related situations, up to 14 weeks may be available. Employees can choose when and how to take their leave—a day or week at a time.

    The actual amount of weekly benefits will be determined by OED based on the individual’s average wages from the previous year. As of July 7, 2025, the minimum weekly benefit amount is $68.19, and the maximum weekly amount is $1,636.56. Minimum and maximum amounts will change each year as they are based on the state average weekly wage, which is updated every year on July 1st.
    For more information regarding Paid Leave Oregon, please visit: https://paidleave.oregon.gov/employers-overview/.

    Oregon law also mandates that employees receive 40 hours of job-protected sick leave per year. Employers within the City of Portland with six (6) or more employees must provide the sick leave as a paid benefit; Portland employers with fewer than six (6) employees can provide the leave as an unpaid benefit. For Oregon employers outside the City of Portland, 10 is the threshold to provide sick leave as a paid benefit. Employers that employ fewer than 10 employees can provide the leave as an unpaid benefit.

    All employees employed by the employer (full-time, part-time, seasonal, and temporary) must be counted for purposes of determining the number of employees. Generally, if an owner is also getting a W-2, they should be counted as an employee unless some specific exemption applies. The following individuals are specifically excluded from the employee count; an individual who is a director of a corporation who has a substantial ownership interest (ownership equal to or greater than the average percentage of ownership of all owners, but not less than 15 percent), a member of a limited liability company who has a right to vote and a substantial ownership interest, a partner of a limited liability partnership who has a substantial ownership interest, or a sole proprietor of a business. The parent, spouse, or child of such individuals are also excluded from the employee count.

    Some parties are not covered by Oregon’s sick leave law. The federal government is exempt. Independent contractors; railroad workers exempt under the federal Railroad Unemployment Insurance Act; individuals employed by that individual’s parent, spouse, or child; participants in work-training programs administered under a state or federal assistance program; and participants in work-study programs are not eligible for sick leave under the law.

    Covered employers are required to provide one (1) hour of sick time for every 30 hours worked (or one (1) and one-third (1-1/3) hours for every 40 hours worked). Accrual must begin on the first day of employment, but employees are not eligible to use accrued sick time until the 91st day of employment unless the employer allows leave to be used earlier. Once the employee is eligible to use accrued leave, the employee must be permitted to take sick leave in hourly increments as it accrues. Employees must be permitted to accrue at least 40 hours of sick time per year. (Employers can choose to frontload at least 40 hours of sick time at the beginning of the year.) Employees on the accrual method must be permitted to roll over at least 40 hours of accrued but unused sick time from year to year. Employers may limit accrual to 80 hours total or may cap usage at 40 hours per year. ("Year" includes any consecutive 12-month period, such as a calendar year, a tax year, a fiscal year, a contract year, the 12-month period beginning on the anniversary of the date of employment, or any other 12-month period the employer customarily uses.) If the leave is paid, it must be paid at the employee’s regular rate.

    Sick time must be allowed for at least the designated purposes, which includes, among other reasons, in the event of a public health emergency, including: the closure of the employee’s place of business, or the school or place of care of the employee’s child, by order of a public official due to a public health emergency; a determination by a lawful public health authority or a health care provider that the presence of the employee or the family member of the employee in the community would jeopardize the health of others; or the exclusion of the employee from workplace under any law or rule that requires the employer to exclude the employee from the workplace for health reasons. BOLI recently revised the administrative rule to address specifically the use of sick leave for evacuation, air quality index, and/or heat index orders.
    The law contains notice requirements and guidelines for requesting medical documentation and verification. The law is enforced by BOLI, and there is a private right of action for violations of the law.

    An employer is required to allow employees to use accrued sick leave while on OFLA leave or safe leave, even if the employer’s policy would not otherwise allow them to do so. An employer must also allow employees to use this leave to engage in religious observance or practices unless the leave is restricted in the manner in which it may be used, or use of the leave will create an undue hardship on the employer.

    House Bill 1108, which goes into effect on January 1, 2026, expands the permissible uses of sick time for employees in Oregon to include participation in voluntary blood donation programs that are approved or accredited by the American Association of Blood Banks or the American Red Cross.

    An employer is required to allow employees to use accrued paid sick leave while on OFLA leave, even if the employer’s policy would not otherwise allow them to do so. An employer must also allow employees to use this leave to engage in religious observance or practices unless the leave is restricted in the manner in which it may be used, or use of the leave will create an undue hardship on the employer.

  • Location Of Work/Mobility

    • Oregon law requires employers to pay employees for travel time between work locations in certain circumstances. This requirement is stated in the law (ORS chapter 653 and Oregon Administrative Law (OAR) 839-020-0045) and may not be changed, waived, or eliminated by private agreement.

  • Pension Plans

    • Oregon law does not require a pension plan. The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health benefit plans in private industry to provide protection for individuals in these plans. ERISA does not require the employer to establish a plan. If an employer chooses to establish a plan, however, ERISA requires the plan to meet certain minimum standards such as regularly providing participants with information about the plan, setting minimum standards for participation, vesting, benefit accrual and funding, and requiring accountability of plan fiduciaries.

    In general, ERISA does not cover plans established or maintained by governmental entities, churches for their employees, or plans which are maintained solely to comply with applicable workers compensation, unemployment, or disability laws. ERISA also does not cover plans maintained outside the United States primarily for the benefit of nonresident aliens or unfunded excess benefit plans.

  • Parental Rights (Pregnancy/ Maternity/ Paternity/ Adoption)

    • Pregnancy discrimination is prohibited by statute in Oregon. The federal Family Medical Leave Act (FMLA) provides up to 12 weeks of unpaid parental leave for certain eligible employees. Paid Leave Oregon provides up 12 weeks of paid parental leave, with an additional two weeks available for limitations related to pregnancy, childbirth or a related medical condition, including without limitation lactation. Parental leave includes the birth of a child and may also be taken to care for a newly adopted child or when a foster child is placed with the employee. The Oregon Family Leave Act (OFLA) provides an additional 12 weeks of unpaid leave for pregnancy-related disabilities and an additional 12 weeks for sick child leave.

    Parental leave must generally be taken as one (1) continuous block of time and must be completed within one (1) year after the birth, adoption, or placement of the child. However, under Paid Leave Oregon, employees are permitted to take intermittent parental leave. Under all three laws, intermittent leave or reduced schedules must be permitted as necessary for pregnancy disability or prenatal care. Often, but not always, FMLA will run concurrently with Paid Leave Oregon but OFLA will not run concurrently with Paid Leave Oregon. Also, OFLA provides additional circumstances where leave may be used that may exceed the FMLA and, therefore, cannot count toward the same 12-week entitlement. 

    Pregnant employees are also entitled to reasonable workplace accommodations that would not pose an undue hardship (significant difficulty or expense) on the operation of the business (e.g., acquisition or modification of equipment or devices; more frequent or longer break periods or periodic rest; assistance with manual labour; or modification of work schedules or job assignments). See ORS 659A.146 to ORS 659A.148. [Note: The requirements of ORS 659A.147 apply only to employers who employ six or more persons.

    For a period of up to 18 months after childbirth, employers must provide lactating employees with reasonable break times and a suitable room to express breast milk for a nursing child. Employers must post signs in a conspicuous and accessible location informing employees of these anti-discrimination protections and their right to reasonable accommodations. See 659A.147.A template for that notice is available on BOLI’s website, https://www.oregon.gov/boli/workers/pages/pregnancy-and-nursing-accommodations.aspx.

  • Compulsory Terms

    • None.

  • Non-Compulsory Terms

    • The parties are free to agree on terms, but some provisions may not be enforceable as a matter of public policy. If a statute or regulation requires a particular term or condition of employment, the parties may not agree to a less favourable term or condition.


Types Of Agreement

Employment in Oregon is “at-will” employment unless the employer and employee agree otherwise. “At-will” employment means that the employee is employed for an indefinite period of time and that the employer or employee may terminate the employment relationship at any time with or without cause and without prior notice, subject to any statutory limitations on termination (for example, it must not be discriminatory, retaliatory or in violation of any other laws). An employer and employee may enter into an oral or written employment agreement. Employment agreements may, under certain circumstances, be implied by actions an employer takes or by policies or written promises that employers makes in offer letters, a policy manual, or employee handbook.

Written or oral employment agreements can cover a variety of subjects including length of employment, signing bonuses, bonus structure, commissions, tips, stock options, etc. Typically, such agreements are used for high-level executives. If the workplace is unionised, a CBA may also cover certain workplace issues.


Secrecy/Confidentiality

Oregon has adopted the Uniform Trade Secrets Act, which 48 states, the District of Columbia and U.S. Virgin Islands have adopted. [Note: New York follows the state’s common law on trade secrets matters, while North Carolina has its own statute, the North Carolina Trade Secrets Protection Act.] Under Oregon’s trade-secret statutes, employees must keep an employer’s trade secrets confidential during and after employment. In addition, employers and employees may enter into express agreements that create broader confidentiality obligations on employees.

Oregon also has a Workplace Fairness Act (“OWFA”), which restricts employers from including confidentiality, non-disparagement, and no-rehire provisions in settlement agreements and separation agreements that prevent the employee from disclosing discrimination in the workplace constituting, including sexual harassment or sexual assault, unless the employee specifically requests them.
On the other hand, an employer that enters into a separation or severance agreement with an employee who has not alleged a claim of discrimination under ORS 659A.030, ORS 659A.082, or 659A.112 is (arguably) not restricted from including confidentiality, non-disparagement, and no-rehire provisions (e.g., employers and employees resolving a wage claim, but not alleged discriminatory conduct, may include such provisions if desired).
The amended OWFA also makes it unlawful for an employer to make an offer of settlement or separation conditional upon a request by the employee to include any of these restricted terms. The amendment also specifies that an employee can recover a civil penalty of up to $5,000 in a private action claiming a violation of the OWFA, as well as other relief, including lost wages, counselling or medical costs, attorney’s fees, emotional distress damages, and punitive damages.

Note: The OWFA requires employers to provide workers with a policy prohibiting discrimination and sexual assault. The policy must cover several items, including multiple reporting paths and procedure that bypasses the immediate supervisor if they are the alleged harasser. A model policy is available on BOLI’s website.

Effective June 9, 2025, Senate Bill 951 and House Bill 3410 voids the enforceability of certain nondisclosure or nondisparagement agreements with a medical licensee, except in the following two circumstances: (1) the employment relationship ended; or (2) the agreements are included as part of a negotiated settlement.


Ownership of Inventions/Other Intellectual Property (IP) Rights

In the absence of a written agreement between the parties, ownership of IP rights is determined by federal law. Generally, an employer owns work created by an employee during employment or with information or “know how” belonging to an employer.


Pre-Employment Considerations

Oregon “ban the box” law prohibits employers from obtaining information about a job applicant’s criminal records until after the employer determines the applicant meets the minimum qualifications for the position. (In Portland, employers must wait until a conditional job offer has been made before inquiring about criminal histories. Portland City Code 23.10.030.)

The law also prohibits employers from advertising openings that exclude people with criminal records from applying. 

Employers may confirm a candidate’s salary history only after making a conditional offer of employment, including an amount for compensation.

Most employers may not legally obtain or use an applicant’s or employee’s credit history information. Exceptions include: federally insured banks or credit unions; employers who are required by law to use credit history for employment purposes; applicants for public safety officers who enforce criminal laws or laws related to airport security; applicants for positions where credit history is “substantially job related”—provided the reasons for checking credit history are disclosed in writing.


Hiring Non-Nationals

Employers may not discriminate against employees or applicants based on national origin.  However, federal law requires employers to verify that employees are eligible to work in the U.S., which includes completing the Employment Eligibility Verification Form (I-9). Employers are subject to penalties for employing people who are not authorised to work in the U.S.

Note: Oregon has been a “sanctuary state” since 1987. It is against Oregon law for state and local law enforcement or public agencies (state and local government offices) in the state of Oregon to participate directly or indirectly in immigration enforcement without a judicial warrant. Federal immigration authorities are prohibited from operating private detention centers or accessing non-public spaces in jails. State and local police are prohibited from acting on “non-judicial warrants.” The Sanctuary Promise Act requires all requests made by federal agencies to state and local law enforcement and government agencies regarding immigration enforcement without a judicial order to be documented, reported, and denied. There may be exceptions to each of these.


Hiring Specified Categories Of Individuals

Federal and Oregon state discrimination laws prohibit an employer from discriminating against individuals based on a legally protected characteristic, including disability, race (including physical characteristics that are historically associated with race, including without limitation natural hair, hair texture, hair type, and protective hairstyles (including a hairstyle, hair color, or manner of wearing hair that includes, but is not limited to, braids, regardless of whether the braids are created with extensions or styled with adornments, locs and twists)), colour, creed, national origin, sex, marital status, age, sexual orientation, gender identity or expression, veteran or military status, whistleblower status, or protected genetic information.

Covered employers that contract with the federal government may be required to have affirmative action programs, including training programs, outreach efforts, and other positive steps. There are restrictions on the types of work that minors can be required to undertake.


Outsourcing And/Or Sub-Contracting/Temporary Agency Work

Like most states, and under most federal laws, Oregon has special rules for when someone may qualify as an independent contractor or consultant, otherwise they will be considered an employee and entitled to all rights and privileges (and associated taxation) by default. (Note: Effective March 11, 2024, the U.S. Department of Labor (DOL)uses a six-factor test for determining whether a worker is an employee or an “independent contractor” under the Fair Labor Standards Act (FLSA). In recent court filings regarding lawsuits challenging the rule, the DOL has indicated that it will reconsider its 2024 independent contractor rule issued by the Biden Administration and may issue a new rule. )

Oregon also requires special licensure/registration for: farm/forest labour contractors, construction labour contractors, and property services/janitorial contractors. It also has statutory restrictions on “employment agency” activities.

 

3

MAINTAINING THE EMPLOYEE RELATIONSHIP

Changes To The Contract

If employment is “at-will”, the employer may change the terms and conditions of employment on a prospective basis. If there is an oral, written, or implied employment contract (or a CBA between an employer and a labour union), the terms of that contract will govern whether and how changes to the contract may be made.


Change In Ownership Of The Business

Unless there is a contract or CBA, there are generally no specific employment-related rules governing a change in the ownership of a business. Successor employers are not generally required to hire the former employer’s workforce, although various restrictions may apply where the successor employer is considered an alter ego of the former employer. If a successor employer hires some or all of the predecessor employer’s employees, employees may generally be subjected to new or different terms and conditions of employment upon hire by the successor employer.

Oregon law does impose potential liability for unpaid wages upon what it deems as the “successor to the business” which requires special care when planning for an ownership transition or sale of a business. ORS 652.310(1).


Social Security Contributions

Employers and employees are required to make social security contributions as a matter of federal law. The employer must withhold the employee’s contribution from the employee’s pay.


Accidents At Work

Oregon’s workers’ compensation laws provide medical and job-protected leave benefits to employees who are injured at work or develop an occupational disease. Oregon employers are required to ensure that subject workers are covered by workers’ compensation insurance.

Under the Oregon Safe Employment Act of 1973 (OSEA), Oregon employers are also required to provide a safe and healthy work environment for their employees. Employers are subject to civil and criminal penalties for violations of the OSEA.

Leave laws and disability laws may also be applicable.


Discipline And Grievance

In private employment in Oregon, discipline and grievances are governed by the employer’s policies, any employment agreement, or CBA. Most employer policies provide for discipline up to and including termination of employment for violations of employment policies, insubordination, or other employee misconduct. Progressive discipline policies may be viewed as creating a contractual right to continued employment on the part of the employee.


Harassment/Discrimination/Equal pay

Harassment/discrimination:

  • Federal and state laws prohibit discrimination and harassment based on protected characteristics such as race (including physical characteristics that are historically associated with race, including without limitation natural hair, hair texture, hair type, and protective hairstyles (including a hairstyle, hair color, or manner of wearing hair that includes, but is not limited to, braids, regardless of whether the braids are created with extensions or styled with adornments, locs and twists)), creed, colour, sex (including pregnancy), religion, age, sexual orientation, gender identity or expression, marital status, national origin, veteran or military status, or disability.
  • Oregon also prohibits discrimination based on hairstyles associated with a person’s race. The CROWN act prohibits discrimination based on protective hairstyles. Protective hairstyles are defined as “hair color or manner of wearing hair that includes, but is not limited to, braids, regardless of whether the braids are created with extensions or styled with adornments, locs, and twists.” The law also expands the definition of “race” under ORS 659A to include “physical characteristics that are historically associated with race, including but not limited to natural hair, hair texture, hair type, and protective hairstyles.” The CROWN act also addresses dress codes that may have a disproportionate adverse impact on members of a protected class. Oregon’s anti-discrimination law, ORS 659A, does not prohibit employers from enforcing an otherwise valid dress code or policy so long as the policy provides reasonable accommodations. The CROWN act further specifies that the dress code or policy must not have a disproportionate adverse impact on members of a protected class to a greater extent than the policy impacts persons generally.
  • Discrimination is prohibited in all aspects of employment, including job postings, interviewing, hiring, payment, other terms and conditions of employment, and termination of employment. Harassment includes both conduct within the workplace location and offsite where there is a nexus to the working relationship, such as conferences or work-related or hosted events. As noted above, Oregon also adopted the Workplace Fairness Act in 2020 which, among other things, extended the statute of limitations for some claims to five (5) years and mandates that employers adopt and enforce policies addressing discrimination and harassment with statutorily mandated terms. It also added robust protections related to employee speech regarding potential discrimination and harassment. 
  • Federal and Oregon state law also prohibits employers from retaliating against employees who report discrimination or harassment or participate in an investigation into such complaints, or who make use of sick time or other protected leaves.
  • Effective September 26, 2025, House Bill 3187 amended ORS 659A.030(1) prohibit employers, prospective employers, and employment agencies from requesting or requiring disclosure of a job applicant’s age, date of birth, or educational attendance/graduation dates.  . Employers are no longer be able to ask for an applicant’s age, date of birth, or educational timeline before completing an initial interview, or if no initial interview occurs, before making a conditional offer of employment.  However, employers may request this information: (1) if it is necessary to confirm the applicant meets bona fide occupational requirements, or (2) to comply with any provision of federal, state, or local law.

Respectful Workplace:

Since 2023, BOLI has been charged with providing employers with a model respectful workplace policy and creating and making available informational materials that identify the harms to employees and employers caused by workplace bullying. Those materials are available on BOLI’s website. While not required by statute, a clear and consistently applied respectful workplace policy can help to prevent conduct that could escalate to unlawful harassment and discrimination as well as promote professional workplace behaviour, and a safer workspace overall. As a best practice, in addition to providing the policy required by the OWFA that addresses unlawful harassment, discrimination, and sexual assault, BOLI recommends employers provide a written policy containing procedures and practices to reduce and prevent inappropriate workplace behaviour. Ideally, the policy should provide a process for employees to report prohibited conduct; identify the individual or position (for example the Store Manager or HR Director) as well as an alternate individual or position to whom an employee can report prohibited conduct; and include a statement that some forms of inappropriate workplace behaviour are also unlawful and refers the employee to the organization’s policy on unlawful harassment and discrimination (required by the OWFA). Note: Employers must also provide employees a copy of the employer’s anti-discrimination policy, the requirements of which are described in ORS 659A.375, when entering into a settlement or separation agreement with an employee who has alleged a claim of discrimination under ORS 659A.030, ORS 659A.082, or 659A.112. The sample policy is available on BOLI’s website, https://www.oregon.gov/boli/employers/Pages/respectful-workplace-policy.aspx.

Workplace Accommodations:

Under federal and Oregon law, employees may be entitled to reasonable accommodations in the workplace based on disability, pregnancy, religion, and safety accommodations related to domestic violence, harassment, sexual assault, stalking, or bias.

Equal Pay:

As of 2019, Oregon also has a robust Pay Equity Act that prohibits employers and prospective employers from:

  • Screening job applicants based on their current or past compensation;
  • Determining the compensation for a position based on the current or past compensation of a prospective employee; and
  • Lowering an employee’s compensation to comply with the provisions of the Pay Equity Act.

Additionally, the Pay Equity Act prohibits employers from seeking the salary history of an employee or applicant from the employee/applicant or the employee/applicant’s current or former employer. 

The Pay Equity Act does not prohibit employers from compensating two employees differently if the difference in compensation is based on a specific “bona fide factor” related to the employee’s position, such as seniority and merit systems or systems that measure earnings by quantity or quality of production, including piece-rate work, workplace location, travel, education, training, or experience.

The Pay Equity Act does not prohibit an employer from (a) considering a current employee’s compensation during a transfer, move, or hire of the current employee to a new position with the same employer or (b) requesting from a prospective employee written authorisation to confirm his or her prior compensation, so long as the employer does so only after making an offer of employment to the prospective employee that includes an amount of compensation

An employer may avoid having to pay compensatory and punitive damages if it can establish that it:

  • completed within three years before the date that the employee filed the action, an equal-pay analysis of the employer’s pay practices in good faith that was reasonable in detail and scope in light of the size of the employer and included a review of practices designed to eliminate unlawful wage differentials; and
  • Has made reasonable and substantial progress toward eliminating unlawful wage differentials for the employer's employees.

Additional protections under Oregon’s pay equity law, include:

  • Employers cannot discriminate against an employee because the employee made a complaint or are testifying in any investigation related to the pay equity law.
  • Employers may not reduce the compensation of any employee to comply with the law.
  • Amounts owed to an employee because of a failure of an employer to comply with the requirements of the pay equity law are considered “unpaid wages” under the law, which means workers can file a claim to recoup that money.
  • Employees who assert violations of the pay equity law may file complaints with BOLI’s Civil Rights Division  or take civil action with a private attorney within one year after the occurrence of the unlawful practice. Workers can file complaints and receive the back pay or wage differential they were owed by their employer for two years prior to filing the complaint or the period of time the worker was subjected to an unlawful wage differential.
  • Employers are required to clearly post pay equity notices in each worksite.
  • An unlawful compensation practice occurs each time workers are paid under a discriminatory compensation decision or other practice.

Compulsory Training Obligations

Other than mandated safety or health related trainings that may be required for a specific industry, trade, or pandemic response, there are no compulsory training obligations placed upon the employer or the employee. However, if the employer requires the employee to attend training, the employer must pay the employee at least minimum wage for the training time.


Offsetting Earnings

An Oregon statute prohibits employers from making deductions from an employee’s wages except in limited circumstances stated in the statute (e.g., deductions required by law such as taxes or garnishments). ORS 652.610. In addition, the federal Fair Labour Standards Act of 1938 may apply.


Payments For Maternity And Disability Leave

Pregnancy and disability leave (see above) are unpaid unless the employer’s policies or Paid Leave Oregon provide otherwise. An employee may generally use accrued vacation leave, sick leave, or other paid leave that the employer offers during the period of pregnancy or disability leave, in accordance with the employer’s policies and state law.


Compulsory Insurance

Employers must generally maintain workers’ compensation insurance and unemployment insurance for employees in Oregon. Paid Leave Oregon, also known as Paid Family Medical Leave Insurance, is also required and considered a form of insurance.

In addition, under the federal Patient Protection and Affordable Care Act, certain employers may be obligated to provide health insurance benefits and can face fines and penalties for failing to provide “minimum essential coverage” to their employees. The obligations generally depend on the size of the employer.


Absence For Military Or Public Service Duties

Military Service and Military Spousal Leave:

  • Employees who take leave for military duty are protected by federal law and have specific reinstatement rights. Oregon law also provides public employees with certain paid military leave entitlements.
  • Oregon law provides military family leave for employees of private employers as well. An employee who is the spouse or domestic partner of a service member (of the U.S. Armed Forces, the National Guards, or U.S. military reserved forces) has received an impending call to active duty during a period of military conflict may take up to 14 days of (unpaid) job-protected leave from work per deployment. 
  • OMFLA leave counts against an employee’s OFLA entitlement, but it remains available even if all OFLA leave has been exhausted. (Note that OMFLA eligibility requires that employees work an average of just 20 hours per week rather than 25 with no minimum length of employment so an employee who is not eligible for OFLA leave may still be eligible for OMFLA leave.)

Jury Duty:

Employers must allow employees to take a leave of absence while they are serving as jurors. The leave does not need to be paid.


Works Councils or Trade Unions

Under federal law, employees may organise or choose to be represented by a labour union. Union activity is generally governed by federal law.


Employees’ Right To Strike

Federal law generally prohibits employers from terminating employees who are on strike.

The National Labor Relations Board has useful guidance related to this issue: https://www.nlrb.gov/strikes.


Employees On Strike

Employees on strike are generally protected and cannot be terminated unless the employees engage in serious misconduct while striking or the strike was unlawful and unprotected. However, if employees are on an economic strike they may be permanently replaced by the employer and may be denied reinstatement if there are no open positions upon the conclusion of the strike, and until open positions materialise.

Note: When the new law becomes effective January 1, 2026, Oregon law will  permit striking workers to collect unemployment insurance (UI) during labor disputes. Benefits for striking workers will be capped at 10 weeks, available only after a two-week waiting period (including a one-week disqualification period, plus the usual waiting period week), and required to be paid back if the individual receives back pay from an employer to resolve a strike.


Employers’ Responsibility For Actions Of Their Employees

Employers are typically responsible for the conduct of their employees unless the employee was acting outside the course and scope of employment.

4

FIRING THE EMPLOYEE

Procedures For Terminating the Agreement

There are no requirements related to the procedure for terminating employment, unless specified in a contract or a CBA.

There are strict requirements that apply to the payment of final wages when an employee is fired, laid off, or quits. Oregon law dictates when final pay must be given to an employee and will depend on the reason for termination.

  • If an employee quits with less than 48 hours’ notice, excluding weekends and holidays, the paycheque is due within five (5) business days or on the next regular payday, whichever comes first.
  • If an employee quits with notice of at least 48 hours, the final paycheque is due on the final day worked, unless the last day falls on a weekend or holiday. In that case, the paycheque is due on the next business day.
  • If an employee is discharged, or if the employee and employer mutually agree to terminate the relationship, the final paycheque is due no later than the end of the next business day.

    • Note: When employment is related to state and county fairs, and employment terminates on weekends or holidays, the check is due by the end of the second business day after the termination.

There is a statutory exception from the final paycheque requirements if a CBA makes provisions for final pay.

Employers that fail to pay final wages when they are due risk the imposition of a penalty wage equal to eight (8) times the employee’s regular rate of wage for each day that final wages go unpaid up to 30 days. Employers may limit this liability to 100 percent of unpaid wages by paying final wages within 12 days of written notice from the employee that wages remain due, unless (a) the employer has violated ORS 652.140 or 652.145 one or more times in the year before the employee’s employment ceased or (b) the employer terminated one or more other employees on the same date that the employee’s employment ceased.

Oregon law also provides a $1,000 civil penalty for wilful failure to pay wages at termination as well as costs, interest and attorney fees.


Instant Dismissal

Employment in Oregon is generally “at will”, meaning that the employer or the employee may terminate the employment relationship at any time, for any reason, with or without notice—subject to state and federal discrimination and labour laws and any employment contract.


Employee's Resignation

See “instant dismissal” supra.


Termination On Notice

Absent a contract between the employer and the employee to the contrary, employees may generally be terminated without prior notice. However, notice may be required before certain plant closings or mass layoffs.


Termination By Reason Of The Employee's Age

Federal and state discrimination laws prohibit termination based on age except in very limited and unusual instances.

Oregon employers may not fire, refuse to hire, or otherwise discriminate against an employee in compensation or other terms, conditions, or privileges of employment because of that person’s age if they are 18 or older. ORS 659A.030(1). For example, a business may not reject a qualified 19-year-old applicant because the employer is concerned that the worker may not fit in with an older workforce.

State and federal law provide narrow exceptions that allow employers to factor in age when it is reasonably necessary for the particular business, known as a bona fide occupational qualification (or BFOQ). For example, regulations prohibit employers from hiring a bartender who is under 21. OAR 839-005-0013.

Federal guidelines also allow an employer to make hiring and firing decisions on the basis of age if federal laws or regulations impose age limitations for public safety. Airline pilots who fly passengers on commercial aircraft, for example, may not be 65 years of age or older. Therefore, employers may refuse employment to someone who is outside the ages prescribed by regulations.


Automatic Termination In Cases Of Force Majeure

If the employment is “at-will”, the employer or employee may terminate regardless of the reason, including force majeure.


Collective Dismissals

Oregon does not regulate workforce reductions or mass layoffs for private-sector employers. In other words, Oregon has no mini-Worker Adjustment and Retraining Notification (WARN) Act.

The federal WARN Act requires companies planning a “mass layoff” to notify workers 60 days before the closure. Companies must provide written notice to the Employment Security Department and to the chief elected official of the community where the layoff or closure will occur. To comply with state law, all employers must also notify Oregon’s Rapid Response Unit of the Higher Education Coordinating Commission (HECC) (Office of Workforce Investments) if they give notice of a plant closing or mass layoff under the federal WARN Act—Section 3 of 29 U.S.C. § 2102. ORS 285A.516. The HECC’s website can be viewed here: https://www.oregon.gov/highered/about/workforce/pages/warn.aspx. The HECC provides a list of employers that have given notice under the WARN Act. https://ccwd.hecc.oregon.gov/Layoff/WARN.

In general, employers are covered by the WARN Act if they have 100 or more employees, excluding employees who have worked less than six months during the last 12 months or who work an average of less than 20 hours per week. Private, for-profit employers and private, nonprofit employers are covered, as are public and quasi-public entities which operate in a commercial context and are separately organized from the regular government. Federal, state, and local government entities that provide public services and Indian tribal governments are not covered under the WARN Act.

Notice is triggered when a covered employer closes a facility that will result in 50 or more employees during a 30-day period. Additionally, a covered employer must give notice if a layoff will result in a loss of 500 or more employees, or 50-499 employees if they make up at least 33 percent of the workforce.


Termination By Parties’ Agreement

If the employer and employee have an agreement, or if the employer and a labour union have a CBA, then termination must be done in accordance with the terms of the agreement or CBA.


Directors Or Other Senior Officers

Termination of employment does not automatically bring an end to board membership or officer designation. A company’s Articles of Incorporation and/or bylaws will usually govern the steps needed to terminate those relationships.


Special Rules For Categories Of Employee

There are no special rules for terminating any particular category of employees.


Specific Rules For Companies in Financial Difficulties

In addition to complying with WARN Act requirements (described above in the Collective Dismissals section), companies experiencing financial difficulty must also comply with federal bankruptcy laws, which may require them to continue honouring employment agreements and/or continue voluntary employee benefits.


Restricting Future Activities

Noncompetition agreements (i.e. restrictions on an employee’s ability to work in a particular industry/type of employer within a defined geographic area for a period of time after employment ends) are valid in Oregon, as long as (i) at least two (2) weeks before the first day of an employee’s employment, the employer notifies the employee in writing that a noncompetition agreement is a condition of employment or (ii) the noncompetition agreement is entered into upon the employee’s subsequent bona fide advancement. Both federal and state courts in Oregon have defined “bona fide advancement” as used in the Oregon statute to mean promotion or advancement to a higher position. In addition, a noncompete agreement is also void unless: (i) the employee meets the criteria for a salaried exempt employee whose annual income at termination exceeds a minimum amount adjusted each year for inflation; (ii) the employer has an interest to protect, such as trade secrets; sensitive, confidential business or professional information; product development plans; launch plans; marketing strategy or sales plans; and (iii) the employer provides a signed, written copy of the terms of the noncompetition agreement to the employee within 30 days after the employee’s termination.

Before 2022, a noncompetition agreement was “voidable” under several conditions. Under SB 169 (2021), the Oregon Legislature narrowed the application of noncompetition agreements and clarified that agreements entered into on or after January 1, 2022, which did not meet revised criteria are simply void. This means an employee would not have to take any affirmative steps to invalidate an agreement that did not meet the requirements.

Under SB 169 (2021), the effective term of a noncompetition agreement may not exceed 12 months from the date of the end of employment. ORS 653.295.

For the provisions of a noncompetition agreement to be valid, the statute generally requires that the total amount of the employee’s annual gross salary and commissions at the time of the employee’s termination must exceed a minimum amount. For 2025, that number is $116,427. The statute also requires that this minimum annual amount be adjusted each year based on the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the United States Department of Labor. BOLI will use the average annual inflation for Western Region provided by the Bureau of Labor Statistics to compute the minimum salary and commission going forward. The salary threshold for 2026 will be announced in January 2026.

ORS 653.295 makes an exception for “bonus restriction agreements”, which restrict competition after termination of employment and limit the penalty for competition to “forfeiture of profit sharing or other bonus compensation that has not yet been paid to the employee”.

Valid noncompetition agreements, whether voluntary or mandatory, must also meet four general requirements: (1) the restriction must be partial or restricted in its operation with respect to time or territory; (2) it must be supported by good consideration; (3) it must be reasonable; and (4) there must be a protectable interest.

Oregon law also has special constraints for noncompetes in the health care field unless:

  • The medical licensee has an ownership or membership interest in the employer equivalent to 1.5 percent.
  • The agreement is with a professional medical entity that provides the medical licensee with documentation of the entity’s recruitment investment and the agreement has a term not longer than either:
    • five years after the date the medical licensee was hired (if the medical licensee engages directly in providing medical services, health care services or clinical care in a county of the state that is designated as a health professional shortage area); or
    • three years after the date on which the medical licensee was hired (if the medical licensee does not engage directly in providing medical services, health care services, or clinical care).
  • The medical licensee does not engage directly in providing medical services, health care services, or clinical care.

Non-solicitation Agreements are expressly exempted from Oregon’s noncompete statute provided they are narrowly tailored to meet the statutory definition but otherwise must be supported by sufficient consideration and have “reasonable” terms to be enforceable under Oregon law. ORS 653.295(b) defines these as “A covenant not to solicit employees of the employer or solicit or transact business with customers of the employer.”

Note: The Federal Trade Commission (FTC) issued a proposed rulemaking (January 5, 2023) that would generally prohibit the use of noncompete agreements. On April 23, 2024, the FTC issued a final rule banning noncompetes nationwide. Under the FTC’s new rule, existing noncompetes for the vast majority of workers would no longer be enforceable after the rule’s effective date. Existing noncompetes for “senior executives” could remain in force, but employers would not be able to enter into or enforce any new noncompetes, even if they involve senior executives. Employers would be required to provide notice to workers (other than senior executives) that they would not be enforcing any noncompetes.

On August 20, 2024, a federal court in the Northern District of Texas set aside the rule and ordered that the FTC cannot enforce the rule.

As a result of the August 20, 2024 decision in Ryan LLC, the FTC cannot enforce the Rule nationwide, against any employer. This decision is subject to appeal to the U.S. Court of Appeals for the Fifth Circuit, which the FTC filed on October 18, 2024. Employers should keep in mind that each U.S. federal court in the three legal challenges to the FTC’s rule have now ruled on challengers’ requests to preliminarily enjoin the FTC’s rule: one court partially granted the preliminary injunction, another granted the preliminary injunction in full (which was requested as to the named plaintiff only), and the third court denied the preliminary injunction.

On September 5, 2025, the FTC withdrew its appeals and vacated its noncompete rule. Now that the FTC’s rule is vacated, noncompetes return to the status quo and are legal and enforceable on the same terms as they were before the FTC passed the noncompete rule.

Employers should verify the current status of this rule or seek legal counsel prior to implementing any noncompetition agreements.

 

Whistleblower Laws

Most federal and Oregon laws prohibit employers from terminating or otherwise discriminating against employees who complain about conduct prohibited by those laws or participate in an investigation into potential prohibited conduct. Oregon’s whistle-blower law also protects employees from discrimination or retaliation when they in good faith report criminal activity to any person, cooperate with a criminal investigation, bring a civil proceeding against an employer, or testify at a civil proceeding or criminal trial. It also protects public and certain non-profit employees in Oregon from retaliation for reporting waste, fraud and abuse or other workplace violations.


Special Rules For Garden Leave

None.


Severance Payments

Oregon does not require an employer to provide severance pay. Employers may voluntarily pay severance to dismissed employees or they may have a severance plan that applies to all employees. If an employer offers a severance pay out, the employer may require that the employee sign a release. A release that relates to certain claims, including age discrimination claims under federal law, requires a notice and waiver period, along with specific statutory language. Oregon law also prohibits severance or separation agreements from including terms that would prevent an employee from discussing or complaining about discrimination, harassment, or other unlawful conduct so terms related to non-disparagement and confidentiality.


Special Tax Provisions And Severance Payments

Severance payments are subject to taxation and are generally treated as wages.


Allowances Payable To Employees After Termination

Absent a written agreement, policy, or practice to the contrary, there is no requirement for employers to cash out accrued, unused sick leave or vacation leave upon separation. Employees who are dismissed may qualify for state unemployment benefits. Employers pay taxes for these unemployment benefits, and they are administered by the Oregon Employment Department.


Time Limits For Claims Following Termination

If an employee wishes to pursue state law claims with BOLI, the complaint must generally be filed within 180 days, except for claims brought under the Oregon Fair Workplace Act which allows claims to be filed for up to five (5) years. If the claim being pursued is a federal claim, the complaint must be filed or “cross-filed” with the EEOC within 300 days. If there is no requirement to file a complaint with an administrative agency, the time limits for filing suits in federal or state court are governed by the statute under which claim is made. The statute of limitations for contract claims is six (6) years, and most other employment related claims are three (3) years.
When BOLI concludes, dismisses, or closes a case, or if one year has passed from the date a complaint was filed, BOLI will usually issue a “right to sue letter.” The letter will state that the employee has 90 days to file a lawsuit or the right to pursue the claims may be lost. 

Effective June 24, 2025, this Oregon Workplace Fairness Act was amended to clarify the interplay between the 90-day right to sue and the time employees have to file suit:

  • If BOLI issues a finding of substantial evidence of a violation, or if BOLI does not undertake an investigation of the complaint, the complainant must file a lawsuit
    • within 90 days after the right-to-sue letter is issued, if there are 90 days or less left on the applicable statute of limitations at the time of issuance, or
    • before the original statute of limitations expires, if there are more than 90 days left.
  • If BOLI issues a finding of no substantial evidence, the complainant must file a lawsuit
    • within one year after the right-to-sue letter is issued, if more than one year remains on the applicable statute of limitations,
    • before the statute of limitations expires, if at least 90 days but less than one year remains on the applicable statute of limitations, or
    • within 90 days after the right-to-sue letter is issued, if less than 90 days remain.

 

5

GENERAL

Specific Matters Which Are Important Or Unique To This Jurisdiction

The following matters are important or unique to Oregon, or pertain to more recent changes in the legislature:
Paid Leave Oregon: Information about Paid Leave Oregon is provided above. Of recent interest, Paid Leave Oregon was amended effective January 1, 2025, to expand the definition of “family leave” to include leave to attend legal proceedings required for the placement of a foster child or the adoption of a child. Contemporaneous with this change, OFLA’s temporary provision for an additional two weeks of protected leave for those same reasons was eliminated. This change does not expand the amount of benefits available during a benefit year.

Warehouse Worker Protections: As of 2025, Oregon offers special protections to employees of covered warehouse distribution centers, which are defined as single warehouse distribution centers with (1) 100 or more employees or (2) one or more warehouse distribution centers in Oregon with a total of 1,000 or more employees companywide. Employers will need to provide employees with written documentation summarizing any quota that applies to the employee, including the number of tasks to be performed or materials to be produced or handled, as well as a description of potential consequences the employee might face if they do not meet the applicable quota. This documentation must be provided to employees at the time of hire, within two business days following an employer’s change to a quota to which the employee is subject, and to an employee when an employer takes an adverse action against the employee for failure to meet the quota. Employers who fail to comply with the new rules will be precluded from taking adverse employment actions against employees for failing to meet their quota. (But there is a carveout for employees who work under a collective bargaining agreement with defined performance evaluation metrics.)

Overtime for agricultural workers: Federal law typically exempts agricultural workers from overtime pay. Various states, including Oregon, have statutorily mandated payment of overtime in lieu of federal requirements. Starting January 1, 2025, Oregon employers will be required to pay agricultural workers overtime after they work more than 48 hours in a “workweek.” This change is the first step in a multi-year plan to lower the hours-worked threshold for agricultural workers to receive overtime. By January 1, 2027, employers will be required to pay overtime to those employees any time they work over 40 hours in a workweek.

Crime victim leave: Oregon requires employers to provide leave and reasonable accommodations to victims of domestic violence, sexual assault, bias, and stalking, and leave to attend court proceedings in certain circumstances.

Consideration of expunged juvenile records: Employers cannot discriminate against a job applicant or employee based on an expunged juvenile record. After expungement, a person can legally state that the record never existed. However, for certain jobs (like those involving children or specific government roles) or military service, employees may be required to disclose the record's existence, even if it's expunged

Polygraphs, Alcohol Testing and Psychological Examinations: Oregon prohibits employers from requiring job applicants or employees to undergo aalcohol testing, polygraph examination, psychological stress tests, genetic tests, or brain-wave tests, except in limited circumstances.

Bone Marrow Donation Leave: Oregon law requires employers to provide employees with unpaid leave for bone marrow donation and allow them to use up to at least 40 hours of accrued paid sick leave or vacation time. Employees who work an average of 20 or more hours per week are eligible and must give employers advance notice.

Consideration of Off-Duty Tobacco Use: Employers cannot discriminate against job applicants or employees for lawfully using tobacco products in their off-duty hours. Employers cannot refuse to hire, discharge, or otherwise discriminate against an individual because of their smoking or non-smoking status in their private life. However, employers can prohibit smoking in their workplaces and on their properties.

Bereavement: Employers subject to OFLA must provide eligible employee with up to four weeks of bereavement leave per benefit year. Employees may only take up to two weeks of leave per death.

Lactation Breaks: Oregon requires employers to provide reasonable unpaid rest periods for employees to express breastmilk for their child up to 18 months of age.

Age-Related Hiring Questions and Age Discrimination Protections for Apprentices: In  2025, Oregon expanded its age discrimination protections in hiring and apprenticeships:

  • Hiring Age-Related Inquiries. Employers and employment agencies are prohibited from asking for an applicant’s age, date of birth, and educational institution attendance or graduation date unless:
    • An initial interview was already completed; or
    • If there was no initial interview, a conditional employment offer was already extended.
      • These restrictions do not apply when such information is required to affirm the applicant meets bona fide occupational qualifications (BFOQ) or to comply with any federal, state, or local rule or regulation. For example, certain positions may require age-based restrictions due to safety or other requirements.
  • Removal of Age Limits for Apprenticeships. Apprenticeship programs are no longer allowed to reject an apprentice because they would be unable to complete required apprenticeship training before the age of 70.

Preemployment Background Checks: Oregon’s “ban the box” law makes it unlawful for an employer to ask about an applicant’s criminal history before the interview stage of hiring. In Portland, employers must wait until a conditional job offer has been made before inquiring about criminal histories.

Written Statements Required with Explanation of Earnings and Deductions: Effective January 1, 2026, Oregon employers will be required to provide employees, at the time of hire, with a written explanation of the earnings and deductions listed on itemized wage statements. This includes a written explanation of the following: (i) the employer’s established regular pay period; (ii) a comprehensive list of all types of pay rates that employees may be eligible for, including hourly pay; salary pay, shift differentials, piece-rate pay, and commission-based pay; all benefit deductions and contributions; and every type of deduction that may apply; (iii) the purpose of deductions that may be made during a regular pay period; (iv) allowances, if any, claimed as part of minimum wage; (v) employer-provided benefits that may appear on the itemized statements as contributions and deductions; and (vi) all payroll codes used for pay rates and deductions, along with a detailed description or definition of each code.

Consideration of Marijuana: Medical and recreational marijuana has been decriminalised in Oregon. Nevertheless, an employer may prohibit marijuana use and it may conduct drug tests to ensure compliance with such a prohibition. Employees do not have a private cause of action if they are terminated based on marijuana use, nor does the law require employers to accommodate an employee’s off-site use of medical marijuana.

Predictive Scheduling: Oregon has a predictive scheduling law that applies to retail, hospitality, and food-service employers with more than 500 employees. This requires the following:

  • Mandatory Rest Period: If applicable, Oregon’s Predictive Scheduling Law requires employers to provide employees with at least a 10-hour rest period between work shifts, to address shifts that require closing at the end of one shift and opening for the next. An employer may schedule an employee to work during this rest period only if the employee requests or consents to do so. If an employee works during the rest period, the employer must pay time and a half for all time worked during the rest period.
  • Restrictions on Altering Employee Schedules:
    • Employers subject to this law must also post a written work schedule at least 14 days before the first day on the schedule. Employees are entitled to give input into schedules. Certain employer-made changes to the posted schedule after that time entitle employees to additional compensation. The employer must also provide each new employee with a written, good faith estimate of the employee’s work schedule at the time of hire.
    • Some schedule changes are entitling an employee to one additional hour of pay—i.e., adding more than 30 minutes to the work shift; changing the date or state/end time of the employee’s work shift with no loss of hours; and scheduling the employee for an additional work or on-call shift.
    • Other schedule changes can entitle an employee to one-half times the employee’s regular rate of pay per hour for each scheduled hour that the employee does not work—i.e., subtracting hours from work shift before or after the employee reports for duty; changing the date or start/end time of the employee’s work shift, resulting in a loss of hours; or cancelling the employee’s work shift.
  • Voluntary Standby Lists: An employee may volunteer to be on a standby list of employees willing to work on-call shifts. The employee may not be entitled to additional compensation under this circumstance.
  • Limited Exception for Certain Leaves of Absence: There is a limited exception to Oregon’s predictive scheduling law if an employee fails to provide 14 days’ notice of their need to take leave or intent to return from leave under Paid Leave Oregon or the Oregon Family Leave Act.


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Miller Nash LLP
United States


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Miller Nash LLP
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Miller Nash LLP
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© 2026, Miller Nash LLP. All rights reserved by Miller Nash LLP as author and the owner of the copyright in this chapter. Miller Nash LLP has granted to Multilaw non-exclusive worldwide license to use and include this chapter in this guide and to sublicense Lexis Nexis, a division of RELX Inc. and its affiliates certain rights to use and distribute this Guide.

The information in the How to Hire and Fire Guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 2026