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Oregon – Wage and Hour Laws

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Minimum Wage

Oregon’s current minimum wage is $7.95. OR Bureau of Labor FAQs: Minimum Wage. Some exceptions apply to Oregon’s minimum wage requirements.

An employer must also comply with federal minimum wage laws, which currently sets the federal minimum wage $7.25. See FLSA: Minimum Wage.

If an employer chooses to pay employees minimum wage, the employer must pay those employees in accordance with the minimum wage law, either federal or state, that results in the employees being paid the higher wage. In most instance in Oregon, the state minimum wage law will apply as it generally guarantees a higher wage rate for employees than federal law.


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Overtime

Oregon requires an employer to pay overtime to employees, unless otherwise exempt, at the rate of 1 1/2 times the employee’s regular rate of pay for all hours worked in excess of 40 hours in a workweek. OR Bureau of Labor FAQs: Overtime. See FLSA: Overtime for more information regarding overtime requirements.


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Meals and Breaks

Oregon employers must provide employees with at least a 30-minute unpaid meal period when the work period is six (6) hours or greater. The law requires an uninterrupted period in which the employee is relieved of all duties. No meal period is required if the work period is less than six (6) hours. ORS 653.261; OAR 839-020-0050; OR Bureau of Labor FAQs: Meal and Rest Periods.

Oregon employers must provide employees 18 years of age and over with a paid, uninterrupted 10-minute rest break for every four (4) hour segment or major portion thereof in the work period. OAR 839-020-0050(1)(b). The rest break should be given in the middle of each segment, whenever possible. Employers must provide employees under the age of eighteen (18) uninterrupted rest breaks of at least fifteen (15) minutes for each four-hour segment of work or major portion thereof. OAR 839-021-0072; OR Bureau of Labor FAQs: Meal and Rest Periods.

(See also OAR 839-020-0051 Rest Periods for Expression of Milk)


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Vacation Leave

In Oregon, employers are not required to provide employees with vacation benefits, either paid or unpaid. OR Bureau of Labor and Industries FAQs. If an employer chooses to provide such benefits, it must comply with the terms of its established policy or employment contract. OR Bureau of Labor FAQs; See Wyss v. Inskeep, 73 Ore. App. 661, 699 P.2d 1161 (1985); Henderson-Rubio v. The May Department Stores Company, 53 Ore. App. 575, 632 P.2d 1289 (1981).

An employer may lawfully establish a policy or enter into a contract denying employees payment for accrued vacation leave upon separation from employment. OR Bureau of Labor and Industries FAQs.

An employer may also lawfully establish a policy or enter into a contract disqualifying employees from payment of accrued vacation upon separation from employment if they are terminated or fail to comply with specific requirements, such as giving two weeks notice or being employed as of a specific date of the year. OR Bureau of Labor and Industries FAQs; See Wheeler v. Mission Electric & Plumbing Supply, Inc., 267 Ore. 209, 515 P.2d 1323 (Ore. Sup. Ct. 1973).

An employer is required to pay accrued vacation to an employee upon separation from employment if its policy or contract requires it. OR Bureau of Labor and Industries FAQs.

An employer is required to pay accrued vacation leave upon separation from employment if the employer’s established policy or employment contract is silent or ambiguous about the matter. OR Bureau of Labor and Industries FAQs.

An employer may lawfully cap the vacation leave an employee can accrued over time, so long as the employer has properly notified its employees of the vacation policy, so long as the employer has properly notified its employees of the vacation policy. OR Bureau of Labor and Industries FAQs.

An employer may lawfully implement a “use-it-or-lose-it” policy requiring employees to use their leave by a set date or lose it, so long as the employer has properly notified its employees of the vacation policy and gives then a reasonable opportunity to use their vacation leave before it is lost. OR Bureau of Labor and Industries FAQs.


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Sick Leave

Oregon law does not require employers to provide employees with sick leave benefits, either paid or unpaid. If an employer chooses to provide sick leave benefits, it must comply with the terms of its established policy or employment contract. OR Bureau of Labor and Industries FAQs.

An employer in Oregon may be required to provide an employee unpaid sick leave in accordance with Oregon’s Family Leave Act and the Family and Medical Leave Act or other federal laws.


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Holiday Leave

Oregon law does not require employers to provide employees with either paid or unpaid holiday leave. OR Bureau of Labor and Industries FAQs. In Oregon, an employer can require an employee to work holidays. An employer does not have to pay an employee premium pay, such as 1½ times the regular rate, for working on holidays, unless such time worked qualifies the employee for overtime under standard overtime laws. If an employer chooses to provide either paid or unpaid holiday leave, it must comply with the terms of its established policy or employment contract.


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Jury Duty Leave

An employer is not required to pay an employee for time spent responding to a jury summons or serving on a jury.
Oregon Stat. 10.061

An employer may not discharge, threaten to discharge, intimidate, or coerce any employee by reason of the employee’s service or scheduled service as a juror. Oregon Stat. 10.090


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Voting Leave

Oregon does not have a law that requires an employer to grant its employees leave, either paid or unpaid, to vote.


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Severance Pay

Oregon law does not require employers to provide employees with severance benefits. If an employer chooses to provide severance benefits, it must comply with the terms of its established policy or employment contract.


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