Oregon Wage Payment Laws - ELH / HR4Sight

Frequency of Wage Payments

An employer must pay employees at least once every 35 days on regular paydays designated by the employer. OR Statute 652:120

Manner of Wage Payments

An employer may pay employees by:

cash,
check redeemable at face value without deduction at a bank or other institution in the county where the employee lives or works,
direct deposit system, automated teller machine card, payroll card or other means of electronic transfer if the employee consents and may:
- make an initial withdrawal of the entire amount of net pay without cost to the employee; or
- choose to use another means of payment of wages that involves no cost to the employee,
payroll card if the employee consents and may:
- make an initial withdrawal of the entire amount of net pay without cost to the employee; or
- choose to use another means of payment of wages that involves no cost to the employee.

If an employee wants to revoke his or her consent to any form of electronic deposit, he or she must give the employer written notice of the revocation. The revocation takes affect 30 days after the employer receives it.

OR Statute 652.110

Direct Deposit

An employer may pay wages by direct deposit, so long as the employee consents. If an employee wants to revoke his or her consent to any form of electronic deposit, he or she must give the employer written notice of the revocation. The revocation takes affect 30 days after the employer receives it. OR Statute 652.110

Payroll Card

Payment upon Separation from Employment

Employees who are fired, discharged, terminated, or laid off

When an employee is discharged or who leaves employment in accordance with a mutual agreement with the employer, including a layoff with no reasonable expectation of return, the employer must pay the employee all wage due no later than the end of the first business day after the date of the separation from employment. OR Statute 652.140; OR Admin. Rules 839-001-0420

Employees who quit or resign

If an employee quits or resigns employment and gives the employer at least 48 hours notice of the intention to quit, not including Saturdays, Sundays, and holidays, the employer must pay the employee on the last day of the employee’s employment.

If an employee quits or resigns employment without giving his or her employer prior notice, the employer must pay the employee within five (5) days, excluding Saturdays, Sundays, or holidays, or by the next regularly scheduled payday, whichever occurs first.

If an employee quit but is regularly required to submit time records to the employer to enable the employer to determine the wages due to the employee, the employer must pay the employee an estimate of all wages due within five (5) days after the employee has quit. The employer must pay any wages still owing within five (5) days after the employee has submitted the time records.

When an employee employed pursuant to an unexpired contract which provides for a definite period of work, quits with or without notice, an employer must pay all wages due by the next regularly scheduled payday.

An employee may request his or her final wages to be sent to him or her by mail.

A collective bargaining agreement can provide for different payment requirements when an employee’s employment ends.

OR Statute 652.140; OR Admin. Rules 839-001-0420

Employees who are suspended or resigns due to a labor dispute (strike)

When an employees leaves employment to participate in a strike, the employer must pay the employee all wages due by the next regular payday after the commencement of such strike, or within 30 days, whichever occurs first. OR Statute 652.170

Wages in Dispute

In case of dispute over wages between an employer and employee, the employer must timely pay all wages conceded by the employer to be due, leaving the employee all remedies the employee might otherwise have or be entitled to as to any balance the employee might claim. OR Statute 652.160; OR Admin. Rules 839-001-0460

Deductions from Wages

An employer may not deduct or withhold any part of an employee’s wages for the following reasons:

cash shortages
breakage, damage, or loss of the employer’s property
dishonored or returned checks
required uniforms
required tools
other items necessary for employment

An employer may not withhold, deduct or divert any portion of an employee’s wages unless:

the employer is required to do so by state or federal law;
the deductions are authorized in writing by the employee, are for the employee’s benefit and are recorded in the employer’s books;
the employee has voluntarily signed an authorization for a deduction for any other item, provided that the ultimate recipient of the money withheld is not the employer and that the deduction is recorded in the employer’s books;
the deduction is authorized by a collective bargaining agreement to which the employer is a party;
the deduction is a garnishment authorized under OR Statute 18.736; or
the deduction is made from the payment of wages upon termination of employment and is authorized pursuant to a written agreement between the employee and employer for the repayment of a loan made to the employee by the employer, if all of the following conditions are met:
- the employee has voluntarily signed the agreement;
- the loan was paid to the employee in cash or other medium permitted by OR Statute 652.110;
- the loan was made solely for the employee’s benefit and was not used, either directly or indirectly, for any purpose required by the employer or connected with the employee’s employment with the employer;
- the amount of the deduction at termination of employment does not exceed the amount permitted to be garnished under OR Statute 18.385; and
- the deduction is recorded in the employer’s books.

Oregon Stat. 652.610; OR Bureau of Labor and Industries FAQs

Uniforms, Tools, and Other Equipment Necessary for Employment

An employer may require an employee to pay for a required “employer specific” uniform as long as it does not reduce the employee’s effective wage rate below minimum wage. An employer may require an employee to pay for a “general uniform” regardless of whether it reduces an employee’s effective wage rate below minimum wage.

A “general uniform” would consist of clothing suitable for street wear. If an employer chooses to require an employee to purchase a uniform, the cost of the uniform cannot be averaged out over more than one pay period. Also, an employer cannot deduct the cost of the uniform from an employee’s wages. OR Bureau of Labor and Industries FAQs

Pre-hire Medical, Physical, or Drug Tests

Oregon does not have any laws prohibiting an employer from requiring an applicant or employee to pay the cost of a medical examination or the cost of furnishing any records required by the employer as a condition of employment.

Notice of Wage Reduction

Oregon does not have any laws addressing when or how an employer may reduce an employees wages or whether an employer must provide employees notice prior to instituting a wage reduction. However, a wage reduction can only be applied to hours worked after the change and cannot be applied to hours already worked.

Statement of Wages (Pay Stub)

Oregon labor laws require employers to provide employees with a statement of wages (pay stubs) at least once per calendar month containing the following items:

The date of the payment;
The dates of work covered by the payment;
The name of the employee;
The name and business registry number or business identification number;
The address and telephone number of the employer;
The rate or rates of pay;
Whether the employee is paid by the hour, shift, day or week or on a salary, piece or commission basis;
Gross wages;
Net wages;
The amount and purpose of each deduction made during the respective period of service that the payment covers;
Allowances, if any, claimed as part of minimum wage;
Unless the employee is paid on a salary basis and is exempt from overtime compensation as established by local, state or federal law, the regular hourly rate or rates of pay, the overtime rate or rates of pay, the number of regular hours worked and pay for those hours, and the number of overtime hours worked and pay for those hours; and
If the employee is paid a piece rate, the applicable piece rate or rates of pay, the number of pieces completed at each piece rate and the total pay for each rate.

Employers may attach the statement of wages to or be a part of the check, draft, voucher or other instrument by which payment is made, or may be delivered separately from the instrument.

Employers may provide the statement of wages (pay stubs) electronically if:

The statement contains the information described in paragraph (b) of this section;
The employee expressly agrees to receive the statement in electronic form; and
The employee has the ability to print or store the statement at the time of receipt.

OR Statute 652.610

Record Keeping Requirements

An employer must maintain and preserve payroll or other records containing the following information with respect to each employee:

full name, as used for Social Security record-keeping purposes, and on the same record, the employee’s identifying symbol or number if such is used in place of name on any time, work, or payroll records;
home address, including zip code;
date of birth, if under 19;
occupation in which employed;
time of day and day of week on which the employee’s workweek begins. If the employee is part of a work force or employed in or by an establishment all of whose workers have a workweek beginning at the same time on the same day, a single notation of the time of the day and beginning day of the workweek for the whole work force or establishment will suffice;
regular hourly rate of pay for any workweek in which overtime compensation is due, and an explanation of the basis of pay by indicating the monetary amount paid on a per hour, per day, per week, per piece, commission on sales, or other basis, and the amount and nature of each payment which is excluded from the “regular rate of pay”. (These records may be in the form of vouchers or other payment data.);
hours worked each workday and total hours worked each workweek (for purposes of this section, a “workday” is any fixed period of 24 consecutive hours and a “workweek” is any fixed and regularly recurring period of seven consecutive workdays);
total daily or weekly straight-time earnings or wages due for hours worked during the workday or workweek, exclusive of premium overtime compensation;
total premium pay for overtime hours. This amount excludes the straight-time earnings for overtime hours recorded under subsection (h) of this section;
total additions to or deductions from wages paid each pay period including employee purchase orders or wage assignments. Also, in individual employee records, the dates, amounts, and nature of the items which make up the total additions and deductions;
total wages paid each pay period;
date of payment and the pay period covered by payment; and
for tipped employees, a symbol, letter or other notation placed on the pay records identifying each employee.

With respect to employees working on fixed schedules, an employer may maintain records showing instead of the hours worked each day and each workweek as required by this rule, the schedule of daily and weekly hours the employee normally works, provided:

In weeks in which an employee adheres to this schedule, indicates by check mark, statement or other method that such hours were in fact actually worked by the employee; and
In week in which more or less than the scheduled hours are worked, shows that exact number of hours worked each day and each week.

With respect to each employee in a bona fide executive, administrative, or professional capacity (including employees employed in the capacity of academic administrative personnel or teachers in elementary or secondary schools), or in outside sales, employers must maintain and preserve records containing:

full name, as used for Social Security record keeping purposes, and on the same record, the employee’s identifying symbol or number if such is used in place of name on any time, work, or payroll records;
home address, including zip code;
date of birth, if under 19;
occupation in which employed;
time of day and day of week on which the employee’s workweek begins. If the employee is part of a work force or employed in or by an establishment all of whose workers have a workweek beginning at the same time on the same day, a single notation of the time of the day and beginning day of the workweek for the whole work force or establishment will suffice;
the basis on which wages are paid in sufficient detail to permit calculation for each pay period of the employee’s total remuneration for employment including fringe benefits and perquisites.

With respect to each employee of hospitals and institutions primarily engaged in the care of persons who are sick or aged or have mental illness or mental retardation and who reside on the premises compensated for overtime work on the basis of a work period of 14 consecutive days pursuant to an agreement or understanding under OR Admin. Rules 839-020-0125(2)(d), employers must maintain and preserve:

full name in full, as used for Social Security record keeping purposes, and on the same record, the employee’s identifying symbol or number if such is used in place of name on any time, work, or payroll records;
home address, including zip code;
date of birth, if under 19;
occupation in which employed;
time of day and day of week on which the employee’s workweek begins. If the employee is part of a work force or employed in or by an establishment all of whose workers have a workweek beginning at the same time on the same day, a single notation of the time of the day and beginning day of the workweek for the whole work force or establishment will suffice;
regular hourly rate of pay for any workweek in which overtime compensation is due, and an explanation of the basis of pay by indicating the monetary amount paid on a per hour, per day, per week, per piece, commission on sales, or other basis, and the amount and nature of each payment which is excluded from the “regular rate of pay”. (These records may be in the form of vouchers or other payment data.);
hours worked each workday and total hours worked each workweek (for purposes of this section, a “workday” is any fixed period of 24 consecutive hours and a “workweek” is any fixed and regularly recurring period of seven consecutive workdays);
total daily or weekly straight-time earnings or wages due for hours worked during the workday or workweek, exclusive of premium overtime compensation;
total premium pay for overtime hours. This amount excludes the straight-time earnings for overtime hours recorded under subsection (h) of this section;
total additions to or deductions from wages paid each pay period including employee purchase orders or wage assignments. Also, in individual employee records, the dates, amounts, and nature of the items which make up the total additions and deductions;
total wages paid each pay period;
date of payment and the pay period covered by payment.
time of day and day of week on which the employee’s 14-day work period begins;
hours worked each workday and total hours worked each 14-day work period;
total straight-time wages paid for hours worked during the 14-day work period;
total overtime excess compensation paid for hours worked in excess of eight in a workday and 80 in the work period;
a copy of the agreement or understanding with respect to using the 14-day period for overtime pay computations or, if such agreement or understanding is not in writing, a memorandum summarizing its terms and showing the date it was entered into and how long it remains in effect;
with respect to each tipped employee, a symbol, letter or other notation placed on the pay records identifying each employee;
with respect to employees working on fixed schedules, an employer may maintain records showing instead of the hours worked each day and each workweek as required by this rule, the schedule of daily and weekly hours the employee normally works, provided:
- In weeks in which an employee adheres to this schedule, indicates by check mark, statement or other method that such hours were in fact actually worked by the employee; and
- In week in which more or less than the scheduled hours are worked, shows that exact number of hours worked each day and each week;
with respect to each employee in a bona fide executive, administrative, or professional capacity (including employees employed in the capacity of academic administrative personnel or teachers in elementary or secondary schools), or in outside sales, as defined in OR Statute 653.010(8), employers must maintain and preserve records containing all the information and data required by subsections (1)(a) through (e) of this rule and, in addition, the basis on which wages are paid in sufficient detail to permit calculation for each pay period of the employee’s total remuneration for employment including fringe benefits and perquisites;
With respect to each employee of hospitals and institutions primarily engaged in the care of persons who are sick or aged or have mental illness or mental retardation and who reside on the premises compensated for overtime work on the basis of a work period of 14 consecutive days pursuant to an agreement or understanding under OR Admin. Rules 839-020-0125(2)(e), employers must maintain and preserve.

OR Admin. Rule 839-020-0080

Notice Requirements

Oregon does not have any laws requiring employers to provide employees, whether at hire or at any other time, of notice of wage rates, dates of pay, employment policies, fringe benefits, or other terms and conditions of employment.