Disclaimer: These materials do not constitute legal advice and should not be substituted for the advice of legal counsel.

Guide last updated October 2025.

At-Will Employment

In Oregon, the law allows termination of an employment relationship by either the employer or the employee without notice and without cause. This is called at-will employment. Generally, unless there is a contract or law that states otherwise, Oregon employers may discharge an employee at any time and for any reason, or for no reason at all. Nees v. Hocks, 272 Or. 210, 216 (1975). Likewise, an employee may terminate the employment relationship for any reason or for no reason. Cocchiara v. Lithia Motors, Inc., 353 Or. 282, 290 (2013).

Ordinarily, both the employer and employee may terminate the employee relationship without liability. Nees v. Hocks, 272 Or. 210, 216 (1975). However, employers may not fire employees for discriminatory reasons. Or. Rev. Stat. § 659A.030. In addition, Oregon employers may not fire an employee in retaliation for good faith reporting of information that the employee believes is evidence of a violation of the law. Or. Rev. Stat. § 659A.199. Oregon employers are also not permitted to terminate employees for their adherence to public policy or for fulfilling a societal obligation. Delaney v. Taco Time Int'l, 297 Or. 10, 14-17 (1984); Nees v. Hocks, 272 Or. 210 (1975).

Immigration Verification

Oregon places no requirement on employers to verify immigration status beyond the federal I-9 compliance. 8 U.S.C. § 1324a(b); 8 C.F.R. § 274a.2. Oregon does not mandate the use of E-Verify.

Drug and Alcohol Testing

Or. Rev. Stat. § 438.435

In Oregon, there is no law governing pre-employment or employment drug testing. However, all Oregon employers must comply with state alcohol testing laws. Or. Rev. Stat. §§ 659.840, 659A.300.

An employer may require an employee or applicant to be tested for alcohol if the employee or applicant consents to the test or if there is reasonable suspicion the employee or applicant is under the influence of alcohol. The employee may not be required to pay the costs of any blood alcohol content test or breathalyzer test. Or. Rev. Stat. §§ 659.840(1), 659A.300(4). When there is a positive test result, a confirming test must be performed. Or. Rev. Stat. § 438.435(3).

While Oregon laws do not specifically regulate drug testing, employees can generally only be tested for substances in a laboratory that is licensed and meets certain standards specified by the state. Or. Rev. Stat. § 438.435.

Where a test is performed outside of Oregon and the results are used to deny employment or a benefit, the employer has the burden of proving the testing meets or exceeds the standards specified under Oregon law. Or. Rev. Stat. § 438.435(8).

Jury Duty Leave

Or. Rev. Stat. § 10.090

It is unlawful for an employer to discharge an employee because of missing work due to jury service. An employer also may not threaten to discharge, intimidate, or coerce an employee because of jury service. An employee who is subjected to such actions may bring a civil action or file a complaint with the Commissioner of the Bureau of Labor and Industries. The employer's personnel policies, or specific employment agreements, will determine whether any compensation is payable to an employee during jury service. There is no statutory requirement that an employer pay salary or wages during an employee's jury service. An employer may not require that an employee use vacation leave, sick leave, or annual leave for time spent by the employee in responding to a summons for jury duty, and the employer must allow the employee to at least take leave without pay for time spent by the employee in responding to a summons for jury duty.

Voting Leave

No laws require companies to give workers time off to vote.

Family and Parental Leave

Or. Rev. Stat. § 659A.150 et seq.; (https://www.oregon.gov/boli/workers/pages/oregon-family-leave.aspx).

If the employer has 25 or more employees, the employee can qualify for protected leave under the Oregon Family Leave Act (OFLA) after 180 days of employment, provided that the employee worked for an average of at least 25 hours a week or more for those 180 days.

OFLA provides protected, unpaid time off to eligible employees for the following reasons:

• Sick-child leave to provide home care for a child (including home care for a child with an injury or health condition);
• The employee can also take OFLA-protected time if the employee's child's school or child care provider is closed due to a public health emergency;
• Bereavement leave;
• Pregnancy disability for the employee's own pregnancy-related illness, injury, or condition where the employee is disabled from performing available job duties; and
• Military family leave (up to 14 days if the employee's spouse or domestic partner is a service member who has been called to active duty or is on leave from active duty).

In terms of allowable leave, employers should note:

• OFLA leave is capped at 12 weeks per year for sick child leave and bereavement;
• Bereavement leave is further limited to two weeks per family member with a maximum of four weeks in a given leave year;
• OFLA provides up to 12 additional weeks of leave for pregnancy-related illness, injuries, and conditions that disable the employee from performing available job duties; and
• Per recently enacted legislation, leave taken for the child of an employee is only available when the child is under 18 or otherwise has a substantial limitation due to a physical or mental impairment under Or. Rev. Stat. § 659A.104.

The employer must continue to give the same health insurance benefits when the employee is on leave as when they are working. When they return to work, they must be returned to their former job or a similar position if the old job no longer exists. OFLA also prohibits discrimination or retaliation against an individual with respect to hiring or tenure or any other term or condition of employment because they have inquired about, submitted a request for family leave, or invoked any provision of OFLA.

Paid Leave

Or. Rev. Stat. § 657B

The Paid Leave Oregon program allows employees to take paid time off for family leave, medical leave, and safe leave. Family leave includes leave to facilitate foster care placement or adoption. The Paid Leave Oregon program allows employees to take up to 12 weeks of paid leave per year (up to 14 weeks for pregnancy-related leave). Paid leave can be taken a week or a single day at a time.

The employee's job is protected while they use paid leave if they have been employed by their employer for at least 90 days. Employers cannot discriminate against employees for using paid leave. Under recently enacted legislation, employers may require certification from a health provider that the employee is able to return to work before restoring the employee to their job position, provided that this is a uniform practice or policy of the employer. This legislation will take effect 91 days after the adjournment of the 83rd Legislative Assembly's 2025 session. 2025 Oregon Laws Ch. 85 (S.B. 69).

While leave under the Paid Leave Oregon program will continue to run concurrently with leave under the federal Family and Medical Leave Act (FMLA), employers may not run OFLA leave concurrently with leave under the Paid Leave Oregon program. Eligible employees may draw on either OFLA or The Paid Leave Oregon program (but not both at the same time) for qualifying events. Or. Rev. Stat. § 659A.162; (https://www.oregon.gov/boli/workers/pages/oregon-family-leave.aspx).

Both employees and employers contribute to the paid leave fund through payroll taxes. All employers must withhold contributions from employees' wages and submit them on their behalf. Large employers with 25 or more employees pay 40 percent of the total one percent contribution rate, and employees pay 60 percent of the one percent contribution rate. Employers with fewer than 25 employees can choose to contribute but are not required to pay into the program. An eligible employee who submits a claim for benefits and contributes to the paid leave fund may receive benefits through the program. The employee can be eligible whether they work full-time, part-time, seasonal, or with more than one employer.

While employees may receive 100 percent wage replacement, benefit payments depend on the employee's weekly wages compared to the average weekly wage.

Employers may elect to provide their own paid leave plan for their employees. These plans must provide equal to or greater benefits to employees compared to the state's paid leave plan, and they must be made available to employees who have been continuously employed for 30 days. The Paid Leave program must approve all employers' equivalent plans.

Other Leave

Sick Time

Or. Rev. Stat. § 653.601 et seq.; (https://www.oregon.gov/boli/workers/Pages/sick-time.aspx).

An employee can get paid sick time if the employer has ten or more employees (six or more if they have a location in Portland). Otherwise, sick time is protected but unpaid. An employee can use sick time if the employee or a family member is sick, injured, experiencing mental illness, or needs to visit the doctor.

An employee receives at least one hour of protected sick time for every 30 hours they work up to 40 hours per year. (Employers can choose to frontload at least 40 hours of sick time at the beginning of the year.) An employee can begin taking sick time after they have worked for the employer for at least 90 days. The employer must regularly let the employee know how much sick time they have earned.

Vacation Time

Vacation pay, holiday pay, bonuses, sick leave, and severance pay are wage agreements that may be made between employers and employees as part of the employee's total compensation. Employers are not legally required to offer these benefits. Employers must honor any established policies or agreements relating to the payment of benefits, such as accrued vacation or severance pay upon termination. (https://www.oregon.gov/boli/workers/Pages/holiday-and-vacation-pay.aspx).

Smoking Laws

Or. Rev. Stat. § 433.835 et seq.

Oregon is governed by the Indoor Clean Air Act (ICAA). The ICAA applies to the smoking, vaporizing, and aerosolizing of inhalants (or carrying a lighted smoking instrument) in and around workplaces. Smoking, vaporizing, and aerosolizing of inhalants is prohibited within ten feet of all entrances, exits, windows that open, and vents that serve a closed area.

With limited exceptions (e.g., cigar bars, smoke shops, designated hotel and motel rooms, ceremonial proceedings), workplaces and enclosed public places are subject to the law. This includes work vehicles that are not operated exclusively by one employee, as well as hotels and motels. Employers must provide employees with smoke-free places of employment and prohibit smoking, vaporizing, and aerosolizing of inhalants at the place of employment. Employers are required to post signage with notice of these restrictions.

The ICAA also applies to e-cigarettes and vape pens.

Break Time to Express Milk

Or. Rev. Stat. § 653.077

The law protecting employees who express milk applies to employees expressing milk for the employee's child, 18 months of age or younger. Employers must make reasonable efforts to provide an appropriate location close to the employee's work area (other than a public restroom or toilet stall) for the employee to express milk in private. The employer must provide the employee with reasonable unpaid rest periods to express milk for the employee's child each time the employee has a need to express milk. Employers with ten or fewer employees may assert an exemption if providing these breaks imposes an "undue hardship."

Meal Breaks

Or. Rev. Stat. § 653.261 (Or. Admin. R. 839-020-0050)

With some limited exceptions, for each work shift that lasts six to eight hours, an employee must receive one meal break lasting 30 continuous minutes during which they are relieved of all duties. If the employee is not relieved of all duties during this break, they must be compensated for the 30 minutes.

For every four hours or a major part of four hours that the employee works, they are generally entitled to a ten-minute paid break during which they are relieved of all duties.

These are the minimum requirements. An employer can give longer breaks.

Minimum Wage, Overtime, and Wage Recordkeeping

Minimum Wage

Or. Rev. Stat. § 653.025

Oregon's minimum wage depends on work location. From July 1, 2025, through June 30, 2026, the minimum wage is $14.05 per hour in non-urban areas, $15.05 per hour in standard counties, and $16.30 per hour in the Portland metro area. (https://www.oregon.gov/boli/workers/pages/minimum-wage.aspx).

Overtime

Or. Rev. Stat. § 653.261; Or. Admin. R. 839-020-0125, 0030, 0130, 0150; 29 U.S.C.A. § 207

Oregon state labor laws regarding the payment of overtime are mostly consistent with the federal overtime laws, and employers must pay time and one-half for all hours worked more than 40 per work week unless an employee is properly classified as exempt.

Wage Recordkeeping

Or. Rev. Stat. § 652.120

Regular paydays must be established and maintained by every employer. Payment to new employees must be made no later than 35 days from the time their work begins. Pay periods may be established more frequently but may not be more than 35 days apart.

When an employer has notice that an employee has not been paid the full amount the employee is owed on a regular payday, and there is no dispute regarding the amount of the unpaid wages:

• If the unpaid amount is less than five percent of the employee's gross wages due on the regular payday, the employer shall pay the employee the unpaid amount no later than the next regular payday; or
• If the unpaid amount is five percent or more of the employee's gross wages due on the regular payday, the employer shall pay the employee the unpaid amount within three days after the employer has notice of the unpaid amount, excluding Saturdays, Sundays, and holidays.

Final Payments

• If an employee quits with less than 48 hours' notice (excluding weekends and holidays), the employee's paycheck and any wages owed to them are due within five business days or on the next regular payday, whichever comes first. Or. Rev. Stat. § 652.140(2)(b).
• When an employee quits with at least 48 hours' notice of their intention to quit, excluding weekend days and holidays, payment is due and payable immediately. OR. Rev. Stat. § 652.140(2)(a).
• If an employee is discharged from their employment, their final paycheck is due by the end of the first business day after the discharge. Or. Rev. Stat. § 652.140(1).
• In the event an employer and employee mutually agree to terminate the employment relationship, the employee's check is due by the end of the first business day after the termination. OR. Rev. Stat. § 652.140(1).

With limited exceptions, if an employer willfully fails to pay final wages when due, the employer risks the imposition of a penalty wage equal to the employee's wages for eight hours of work each day from the due date up to 30 days. Or. Rev. Stat. § 652.150(1). With certain exceptions, employers may limit this liability to 100 percent of the employee's unpaid wages by paying the employee their final wages within 12 days of receiving written notice from the employee that their wages remain due. OR. Rev. Stat. § 652.150(2).

Oregon law also provides a $1,000 civil penalty for willful failure to pay wages at termination, as well as attorney fees. Or. Rev. Stat. §§ 652.200, 652.900.

Proposed legislation could explicitly require employers to compensate employees for earned but unused leave. H.B. 2786, 83rd Leg., Reg. Sess. (Or. 2025).

Unemployment Insurance

Or. Rev. Stat. §§ 657.035, 657.150, 657.155, 657.176.

To be eligible to receive Oregon Unemployment Insurance, an individual must meet the following criteria:

• The individual must be unemployed;
• The individual must be able to work, available for work, and actively seeking employment each week he or she is collecting benefits;
• The individual must have earned the minimum amount of compensation through in-state employment as determined by applicable unemployment eligibility guidelines; and
• The individual generally must not have been discharged for misconduct or otherwise voluntarily left work without good cause.

Workers' Compensation

Or. Rev. Stat. Ch. 656

Employers in Oregon are required to maintain workers' compensation insurance for their employees under § 656.017, with the exception of a few categories of workers under § 656.027, including but not limited to:

• Domestic servants;
• Handymen/Handywomen (gardening, maintenance, repair, remodeling, or similar work);
• Certain casual employment where the work in any 30-day period involves a total labor cost of less than $1,000;
• Workers engaged in interstate transport of goods, including by railway or aircraft, where the employer does not have a fixed place of business in the state;
• Firefighters and police of certain cities; and
• Ski area workers who volunteer or work only for ski passes.

A "compensable injury" is an accidental injury, or accidental injury to prosthetic appliances, arising out of and in the course of employment requiring medical services, or otherwise resulting in disability or death. A resulting injury or disease is not compensable as a consequence of a compensable injury unless the compensable injury itself is the major contributing cause of the consequential condition. Or. Rev. Stat. § 656.005(7)(a).

Filing Time

• The employee should inform the employer of the accident as soon as possible. (Or. Rev. Stat. § 656.265).
• For aggravated injuries: five years from the date of the injury from the date of first notice of closure for a disabling claim, or after the date of injury, provided the workers' compensation claim has been classified as non-disabling for at least one year after the date of acceptance (Or. Rev. Stat. § 656.273(4)).
• Hearing regarding denial of claim must be requested by the claimant within 60 days of the mailing of the denial to the claimant, or otherwise within 180 days of the mailing of the denial to the claimant where the claimant establishes good cause for failure to file the request within 60 days (Or. Rev. Stat. § 656.319).

Time Limits on Benefits

• Workers' compensation must be paid promptly once the employer has knowledge or notice of a claim, provided that the workers' right to compensation is not denied. (Or. Rev. Stat. § 656.262(2)).
• For partial and temporary disabilities, the first three days after the employee leaves work or loses wages are only paid if: (1) the employee is totally disabled following the injury and the total disability continues for 14 days; or (2) the employee is admitted to a hospital as an inpatient within 14 days of the first onset of total disability. (Or. Rev. Stat. § 656.210(3)).
• Otherwise, the first temporary disability payment is due on the 14th day after notice is given to the employer (Or. Rev. Stat. § 656.262(4)(a)).
• Employers must report compensable injury claims to their insurer immediately or within five days of notice or knowledge of the claim. (Or. Rev. Stat. § 656.262(3)(a)).

Other Limits

• Subject to seniority rights and employment restrictions in a valid collective bargaining agreement, employers with 21 or more employees at the time of an employee's injury and the employee's request for reinstatement are required to reinstate recovered workers if: (1) the position exists and is available; and (2) the employee is not disabled from performing the duties of the position. An employee's former position is available even if a replacement filled the position while the injured employee was absent. If the former position is not available, the employee shall be reinstated in any other existing position that is vacant and suitable. (Or. Rev. Stat. § 659A.043).

Child Labor

Or. Rev. Stat. §§ 653.315, 653.320

No child under 14 years of age may be employed in any work during the term when public schools are in session. The Bureau of Labor and Industries may allow children between the ages of 12 and 14 to be employed in any suitable work during any school vacation extending over a term of two weeks and issue permits for such employment.

A child under 16 years of age may not be employed for longer than ten hours in one day or for more than six days in a week. The Commissioner of the Bureau of Labor and Industries shall issue special permits for the employment of children under 16 years of age in agriculture for longer than ten hours on any one day when the commissioner determines that such hours of work will not be detrimental to the child's health and safety.

A child under 16 years of age may not work before 7:00 a.m., or after 7:00 p.m., except that between June 1 and Labor Day, a child under 16 years of age may be employed until 9:00 p.m. Exceptions exist for children employed in agriculture, youth camps, by newspaper vendors, and in private residences (e.g., domestic work, chores, childcare).

In addition, every child under 16 years of age is entitled to at least 30 minutes for mealtime. The mealtime may not be included as part of the work hours of the day.

Gun Laws

Oregon places no statutory limitations on business owners' ability to restrict the possession of firearms on their private property. Starrett v. City of Portland ex rel. State, 196 Or. App. 534 (Or. Ct. App. 2004).

Additional Laws and Regulations

Employee v. Independent Contractor

Or. Rev. Stat. § 670.600

A worker must meet the following requirements to be considered an independent contractor:

1. The worker must be free from direction and control over the means and manner of the provision of their services, subject only to the right of the person from whom the services are provided to specify the desired result.
2. With limited exception, the worker must be customarily engaged in an independently established business.
3. The worker must be licensed under ORS 671 or 701 (CCB, State Landscape Architect Board, or LCB and State Board of Architect Examiners) if required for the service in question.
4. The worker must be responsible for other licenses or certificates necessary to provide their services.

Equal Pay

Or Rev. Stat. § 652.210, 652.220

It is illegal for an employer to pay an employee less than someone else for comparable work because of their race, color, religion, sex, sexual orientation, gender identity, national origin, marital status, veteran status, disability, or age. This includes wages, bonuses, benefits, and more. However, limited circumstances allow for different pay where the entire compensation differential is based on bona fide factors, including one or more of these: a seniority system, a merit system, a system that measures earnings by quantity or quality of production, including piece-rate work, workplace location, travel, education, training, or experience.

An employer cannot give an employee a pay cut to make their pay equal to other employees for the purpose of compliance with equal pay requirements.

It is illegal for employers to require employees to enter into a nondisclosure agreement that would stop employees from disclosing or discussing discriminatory conduct prohibited by ORS 659A.030, 659A.082, and 659A.112. Or. Rev. Stat. § 659A.370.

Proposed legislation would narrow the scope of equal pay requirements to only prohibit discrimination in wages between the sexes. Different pay would be permissible when based in good faith on factors other than sex, seniority systems, or merit systems. S.B. 613, 83rd Leg., Reg. Sess. (Or. 2025).

Genetic Information

Or. Rev. Stat. § 192.537

An individual's genetic information and DNA sample are private and protected. Any person authorized by law, an individual, or an individual's representative, to obtain, retain, or use an individual's genetic information or any DNA sample must maintain confidentiality and protect the information or sample from unauthorized disclosure or misuse.

Medical Information

Or. Rev. Stat. § 192.553

In the State of Oregon, an individual has:

1. The right to have their protected health information safeguarded from unlawful use or disclosure; and
2. The right to access and review their protected health information.

Social Media

Or. Rev. Stat. § 659A.330

Oregon employers may not require workers to disclose their social media account usernames and passwords or to provide the employer access to their personal social media accounts.

It is unlawful for an employer to require an employee or applicant to establish or maintain a personal social media account, or to authorize the employer to advertise on their personal social media account.

Employees have a right to talk about working conditions, including engaging in online conversations that might at times be frustrating for employers and management. Even in a nonunion workplace, the National Labor Relations Act (NLRA) provides protection for workers to discuss larger workplace issues that could reasonably result in the formation of a union. 29 U.S.C.A. § 157.