Oregon Labor Laws - The Complete Guide for 2026

In addition to the federal labor laws companies must comply with, Oregon has its own set of labor laws that govern working conditions and compensation management laws. Oregon labor laws cover a wide variety of employment situations, including discrimination, pay, leave, breaks, workplace safety, and payroll taxes.

Regardless of business size, employers may want to leverage an Oregon payroll & HR service company, such as GNSA, to help with understanding and complying with the state's labor laws that follow and assist with establishing policies, processes, and software to stay compliant with legislation.

Employers can use this article as a guide to help understand and manage compliance with legislation and labor laws throughout Oregon in a few key areas, which include, but are not limited to:

• Recruiting and Hiring Laws
• Wage and Hour Laws
• Child Labor Laws
• Employee Leave Laws (sick time, paid leave, etc.)
• Employee Benefits Law
• Unemployment Laws
• Health & Safety Laws
• Workers' Compensation Laws
• Discrimination Laws
• Postings, Notifications, and Recordkeeping Requirements

Oregon Hiring Laws

Oregon hiring laws encompass a variety of regulations designed to protect both employers and employees throughout the hiring process. These laws govern aspects such as discrimination, background checks, and employment eligibility verification.

New Hire Reporting

Businesses in Oregon must submit certain information to the state when new employees are hired under the Oregon New Hire Reporting Law.

Oregon New Hire Reporting is administered by the Oregon Department of Justice, Child Support Program.

When a new employee is hired, employers must report him or her to the Oregon Department of Justice, Child Support Program within 20 days, along with certain employee and employer information.

Employers can report new hires either by mailing or faxing the Oregon New Hire Reporting Form or by using the Employer Services Portal.

Effective January 1st, 2024, businesses are required to report individuals that are independent contractors. The requirement specifies the reporting of independent contractors for individuals performing services for more than 20 days in a given calendar year; 20 days or less will not be required for reporting. If the contractor is re-engaged by the employer for further services and is expected to work for over 20 calendar days, reporting is required. A re-engaged contractor counts as an individual that has not worked within the past 60 days.

Background Checks and Prescreening

Employers must abide by the laws and regulations in the state regarding Oregon background checks and pre-employment screening. These rules and legislation apply to conducting more traditional background checks and general pre-employment screening of applicants, candidates, and / or new hires.

Background checks can cover a wide range of information about potential employees, including criminal history, employment history, education history, and identity verification.

Per the Fair Credit Reporting Act (FCRA), background checks are only able to go back seven years, but there are some exceptions in which an employer may go back further for the following:

• Executive / Management Positions
• Federal Contractor Positions
• Positions with annual salaries greater than $75,000

Ban the Box

Under Oregon’s “ban the box” law, employers cannot inquire about an applicant’s criminal conviction before the interview stage of hiring. Typically, a criminal history is asked for on a job application. If an interview is not conducted, an employer may not require applicants to disclose criminal convictions prior to the employer making a conditional job offer.

The City of Portland employers must adhere to a stricter “ban the box” ordinance. Employers in Portland must wait until a conditional job offer has been made before inquiring about criminal histories.

Equal Pay and Pay Transparency

Under Oregon’s Pay Equity Law, employers may not inquire about information regarding a candidate’s past compensation history until the employer has offered the candidate employment.

Effective January 1, 2026, pay transparency laws expanded to require an itemized statement of earnings and deductions to be distributed to new hires. The itemized statement should include eligible pay rates, benefits contributions and deductions, purposes of all regular deductions, and allowances if applicable.

The Oregon Bureau of Labor and Industries (BOLI) provides employers with an itemized pay statement template to help comply with the requirement.

Candidates are allowed to disclose information about his or her past compensation if desired, but employers may not consider that information when going through the hiring and onboarding process.

Oregon Wage & Hour Laws

To successfully process payroll in Oregon, employers need to ensure a proper understanding of Oregon payroll and compensation laws.

Here is what employers should know when processing payroll in Oregon.

Minimum Wage

Oregon has three minimum wages for specific geographic regions through June 30, 2026. Note that the correct wage an employer should pay depends on the employee’s work location. 

• For Non-urban Counties, the minimum wage is $14.05 per hour ($14.55 per hour starting July 1, 2026)
• For Standard Counties, the minimum wage is $15.05 per hour ($15.55 per hour starting July 1, 2026)
• The Portland Metro Area minimum wage is $16.30 per hour ($16.80 per hour starting July 1, 2026)
• For employees traveling for work or work in more than one type of location;
  • The minimum wage is the wage of the county where the employee works 50% or more of his or her working hours per week. 
  • Employers may also choose to pay the minimum wage for each county where an employee works.

Oregon’s minimum wage updates annually on July 1st of each year. Minimum wage increases are calculated based on inflation data each year by BOLI, and are typically updated no later than April 30th of each year:

If not covered in an Oregon labor law poster, employers will need to post an Oregon minimum wage poster or notice in the workplace that is made visible to all employees. 

Overtime

Oregon overtime law entitles most hourly employees to overtime pay for any time worked over a total of 40 hours in a standard or single work week. A single workweek is defined as any 7 consecutive workdays. Overtime pay is set at one and a half times an employee’s normal hourly wage. 

Employees exempt from overtime include employees in executive, administrative, professional, or outside sales positions and must pass the FLSA Duties and Salary Level Tests. A variety of people are also exempted from overtime in Oregon, including those working as fishermen or work for commission.

On November 15, 2024, the U.S. District Court for the Eastern District of Texas invalidated a U.S. Department of Labor (DOL) regulation that raised the salary threshold for the "white-collar" overtime exemption under the Fair Labor Standards Act (FLSA). This decision applies nationwide, rendering the rule ineffective.

As a result, the overtime-exempt salary threshold is $684 per week ($35,568 annually). For highly compensated employees, the overtime-exempt salary threshold is $107,432 per year (including at least $684 per week on a salary or fee basis).

Note that Oregon law can prevent hospitals from requiring nurses to work over 12 hours a day or over 40 hours a week, although nurses can go over the limit if he or she choose to. However, there are generally no limits on how much overtime can be required from any other type of worker except as it relates to child labor law or juveniles under the age of 18.

Special Oregon Overtime Laws by Industry

HR professionals must pay close attention to Oregon's special overtime rules by industry, which include special rules for: 

• Canneries 
• Seafood processors 
• Manufacturing 
• Some agricultural employers
• Correctional facility nursing staff
• Domestic workers

Oregon Equal Pay

Oregon employers, under the Oregon Equal Pay Act, are required to pay employees equal pay for equal work regardless of race, color, religion, sex, sexual orientation, national origin, marital status, veteran status, disability or age. Equal pay may not be achieved by making pay cuts. If not included in a labor law poster, employers must post an updated Oregon Equal Pay Notice visible to employees in a common area.

Paychecks and Pay Periods

Oregon law requires that employers pay employees on a regular payday schedule which is not to be more than 35 days apart. In addition, employers may not withhold or delay a paycheck as a form of discipline or in exchange for the return of employer-owned items held by an employee.

Oregon Final Pay Rule

Businesses need to ensure a proper understanding of Oregon Final Pay rules and regulations when employees leave or are terminated. 

The specific rules and legal requirements for delivering the final paycheck to employees are as follows:

For employees that quit without providing 48 hours’ notice, excluding weekends and holidays, the final paycheck must be received within 5 business days or the next regular payday, whichever comes first.

For employees that quit and have provided 48 hours’ notice, the final paycheck must be received on an employee's last day of employment, unless that day is a weekend or holiday. If it is a weekend or holiday, the final paycheck is due the next business day.

For employees that are terminated by the employer OR employees that leave employment by mutual agreement, the final paycheck must be received by the end of the first business day after an employee leaves or is terminated by the organization.

Deductions from Final Pay

Final paychecks should include all earned wages that an employee has not yet received. An employer may only make a deduction from final pay when:

• It is legally required to do so (such as for taxes or wage garnishments)
• The employee has given written consent for the deduction, and the deduction is not for the employer’s benefit (for example, for an employee savings plan)
• The deduction is for a charitable donation
• The deduction is related to dues for a labor organization
• The deduction is related to repayments for a loan agreed between the employer and employee
• The deduction is authorized by a collective bargaining agreement 

For employers providing vacation as part of the employment contract, the final paycheck should include payment for the unused vacation an employee is entitled to receive. Note that neither Oregon nor Federal law requires employers to provide vacation days.

The intersection of Human Resources and other departments can often be blurred, which emphasizes the importance for HR professionals in Oregon to have well-established, up-to-date employee handbooks and company policies. This may require seeking external compliance help from HR consultants or software to assist in compliance and risk mitigation when it comes to all of the processes associated with proper payroll administration. 

Oregon Payroll Tax Laws

In addition to traditional regulations around payroll processing, there are certain laws and payroll taxes that Oregon businesses should also be aware of.

Oregon Transit Tax

On July 1, 2018, the Statewide Transit Tax (STT), outlined in HB 2017, went into effect, which requires all employers to withhold, report, and remit one-tenth of one percent (or 0.001%) of wages paid to employees. The STT is calculated based on the employee's wages as defined in ORS 316.162. Revenue from the STT goes into the Statewide Transportation Improvement Fund to finance investments and improvements in public transportation services, except for those involving light rail.

Note: Originally to go into effect on January 1, 2026, the STT tax was to be increased to two-tenths of 1% (or 0.002%) in accordance with HB 3991. However, a referendum petition successfully paused the STT tax increase, meaning employers should continue to withhold 0.001% of employee wages towards STT tax until further notice.

TriMet Tax

The Mass-Transit (TriMet) Tax is paid by the employer to the Oregon Department of Revenue and helps fund mass transportation in the TriMet District. Employers can determine if the business is located in the TriMet District by viewing the zip code boundary list. 

Effective January 1, 2025, and thereafter, the TriMet tax rate is 0.8237% of the wages paid by an employer and the net earnings from self-employment for services performed within the district boundary.

Oregon Break Laws

Oregon break laws may require three breaks during the typical 8-hour workday, but the number of breaks required will vary based on the time worked.

Rest and Meal Breaks

Oregon employers must provide an employer-paid rest break of 10 minutes for every 4 hours of work in one work period.

Employers must also provide a non-paid meal break or lunch break of at least 30 minutes to employees working 6 to 8 hours in one work period. A meal break is not required if the work period is less than 6 hours. Additional meal breaks are required to be provided to employees working 14 hours or more in a shift.

Meal breaks or lunch breaks are only unpaid if the employee is relieved of all duties. If an employee performs any duties during a meal break, the employer must pay the employee for the whole meal break. 

Here is a breakdown of required breaks for work periods with varying durations, including and beyond the typical 8-hour shift or workday:

Express Milk Break 

Oregon employers are required to provide employees, including hourly, salaried, and part-time, an appropriate / private location to express milk. This requirement lasts until the child is 18 months of age. Employers with 10 or fewer employees may request an exemption to BOLI if providing express milk breaks causes “undue hardship.”

Oregon Scheduling Laws

As of 2017, businesses in Oregon must maintain compliance with Oregon Predictive Scheduling.

Predictive scheduling applies to all employers in the state in the retail, hospitality, or food services industries with 500 or more total employees, and was created with the primary intention of giving employees needing to care for children or other family members a chance to allocate his or her time appropriately, without sacrificing shifts and the opportunity to work.

Under Oregon’s predictive scheduling rules, employers must:

• Provide a written work schedule to employees at least 14 calendar days in advance for the first day on the schedule
• Compensate employees if changes are made to the schedule without proper notice
• Allow employees to provide input into his or her schedule availability
• Allow employees to exercise his or her right to rest between shifts
  
  • Employers must pay employees time and a half for back-to-back shifts within 10 hours or each other

Oregon Child Labor Laws

For those hiring and employing minors in Oregon, to help ensure compliance with the full list of Oregon Child Labor Laws, the Oregon Bureau of Labor & Industries (BOLI) provides the state regulations safeguarding working minors. Minimum wage, break requirements, prohibited or restricted occupations and duties, and varying work hour restrictions based on age are all employment laws for minors to be aware of.

Oregon Legal Working Age

The legal working age typically starts at 14 years old in Oregon, with some exceptions. Special rules apply to the agricultural and entertainment industries. 

Reporting Requirements

Employers must file an annual Employment Certificate Application with BOLI to verify minors' ages through appropriate documents, and maintain a list of hired minors with a posted, validated Employment Certificate.

Break Requirements

In Oregon, minors are entitled to a 30+ minute unpaid meal break after six hours of work and a 15+ minute paid rest break for every four hours worked in a single shift.

Work Hour Restrictions

Employers must adhere to specific guidelines regarding the hours minors can work based on his or her age. There are specific exceptions for minor workers involved in Career Exploration, Work Experience, or Work-Study programs.

Oregon Leave Laws 

Employers in Oregon must adhere to several different laws regarding employee leave in the state, in addition to any federal laws that apply, such as the Family Medical Leave Act (FMLA). These include Oregon Sick Time, Oregon Family Leave, and Oregon Paid Leave.

Oregon Sick Time

Oregon sick time law entitles employees to receive paid sick time if the employer has 10 or more employees. In Portland, employers with 6 or more employees must provide paid sick time. For any companies smaller than these, unpaid sick time is required. When creating a policy for employees, these Oregon Sick Leave Policy Samples will help reduce the risk of non-compliance and make required sick time easier to initially implement if it's not done already.

Employers need to provide 1-hour of sick leave for every 30 hours worked up to 40 hours per year. Employees may begin to take sick time after he or she has worked for the employer for 90 days. Employers must regularly inform employees of the amount of sick time he or she has earned. 

Similarly to OFLA, employees must be notified of his or her rights, so an Oregon paid sick time poster or notice must be posted. 

Oregon Family Leave Act (OFLA)

The Oregon Family Leave Act (OFLA) mandates that an employer with 25 or more employees must allow employees to take up to a total of 12 weeks of unpaid leave if the employee has worked an average of 25 hours per week for the previous 180 days. 

Leave covered under OFLA:

• Parental Leave for either parent can take time off for the birth, adoption, or foster placement of a child. 
• Employee's Own Serious Health Condition or to care for a spouse, parent, parent-in-law, or child.
• Pregnancy Disability Leave before or after the birth of a child or for prenatal care. 
• Sick Child Leave for the employee’s child with an illness or injury that requires home care but is not serious.
  • Sick child leave is also available if an employee’s child’s school or childcare provider is closed due to a statewide public health emergency.
• Military Family Leave up to 14 days if the employee’s spouse is a service member that has been called to active duty or is on leave from active duty.
• Bereavement Leave up to 2 weeks of leave after the death of a spouse, same-gender domestic partner or custodial or non-custodial parent, with a maximum of 4 weeks in a given leave year.
• Bias Crime Victims Leave for victims of domestic violence, harassment, sexual assault, or stalking, or a parent or guardian of a minor child or dependent that is a victim of domestic violence, harassment, sexual assault, or stalking.

During OFLA, employers must continue to provide employees the same health insurance benefits when on leave as when at work. Additionally, employees must be returned to his or her former job or a similar position if the old job no longer exists.

In order to notify employees of leave rights, an OFLA notice or posting must be made available. 

Note: Paid leave is available through Paid Leave Oregon, effective September 3, 2023, and is covered in the next section of this article. 

Paid Leave Oregon

Paid Leave Oregon does not replace any existing Oregon sick time or leave programs, such as OFLA or FMLA. Effective July 1, 2024, Paid Leave Oregon does not run in conjunction with the Oregon Sick Time Law and the Oregon Family Leave Act (OFLA). Employers must adhere to all legislation required across these three sick leave laws to ensure compliance. There are also differences in qualifying events between the programs.

Important to note is that Paid Leave Oregon does NOT provide employees with leave, rather it provides employees with wage replacement benefits when taking leave for certain qualifying events (events that no longer overlap with OFLA).

The program is funded by contributions from the employee and / or employer. 

The total contribution rate for 2026 is 1% of an employee's gross earnings each pay period, up to $184,500 of wages. The rate is subject to change every year but will not exceed 1%.

The employee contribution is 60% of the total contribution rate (meaning 0.6% of an employee's gross earnings is deducted each pay period). The employer is required to contribute the remaining 40% of the total contribution rate, however, this only applies to employers with 25 employees or more. Otherwise, the State of Oregon covers the remaining 40%.

Employers must collect and remit contributions quarterly to the Oregon Department of Revenue (DOR) AND report total employee counts and wages in Frances Online.

Employees can submit applications for paid leave through the Paid Leave Oregon website.

Oregon Employee Benefit Laws

Employers in Oregon need to be aware of two laws in particular when it comes to administering employee benefits in the state. First, the impact of the Affordable Care Act (ACA) in Oregon, and more importantly, the Oregon Retirement Plan Mandate.

Oregon Retirement Plan Mandate and OregonSaves

The Oregon retirement plan mandate requires by law that all employers in Oregon must offer a qualified Oregon retirement plan to employees. If the employer does not have a retirement plan, OregonSaves must be facilitated. 

Registration was required by certain dates based on the following employer sizes:

• Employers with 1-2 employees: July 31, 2023
• Employers with 3-4 employees: March 1, 2023
• Employers with 5-9 employees: November 15, 2019
• Employers with 10-19 employees: May 15, 2019
• Employers with 20 or more employees: December 15, 2018
• Employers with 50-99 employees: May 15, 2018
• Employers with 100+ employees: November 15, 2017

Since July 2023, all businesses with at least one employee as well as those utilizing a Professional Employer Organization (PEO) or Leasing Agency to offer a qualified retirement plan or OregonSaves.

Qualified retirement plans include: 

• 401(k)
• Simplified Employee Pension plan under 408(k)
• SIMPLE IRA under 408(p)
• Governmental deferred compensation plan under 457(b)
• Qualified annuity under 403(a)
• Tax-sheltered annuity plan under 403(b)

While OregonSaves is somewhat simple to get started with, it may not be the best benefit for employees, nor the best administrative option for employers. Oregon businesses should consider reaching out to an Oregon Payroll Service about payroll-integrated 401(k) plans.

Oregon Continuation of Coverage and COBRA Laws

Oregon employers with 20 employees or fewer are required to provide employees and his or her dependents with COBRA coverage under the Oregon COBRA law.

Employees and his or her dependents are entitled to state continuation of coverage for up to 9 months if:

• A family member loses his or her job
• A family member maintains employment but loses health coverage because hours are cut
• The family member that is insured through work becomes eligible for Medicare and no longer has group coverage but other members of the family still need insurance
• The family member with coverage dies or divorces and a spouse and/or children need insurance

To qualify for continuation of coverage, the covered employee must have continuous health coverage for at least 3 months prior to the end of coverage or employment.

It should be noted that employers with 20 or more employees are subject to federal COBRA legislation and are eligible for coverage for up to 18 months of continued coverage.

Oregon Workplace Safety Laws

Oregon employers have a long list of requirements when it comes to health and safety in the workplace. Particularly, certain industries need to be aware of special requirements under Oregon Occupational Safety and Health Division (Oregon OSHA) guidelines, especially for industries more common or unique to Oregon. 

In addition to Oregon OSHA laws, employers should be aware of any federal requirements that also apply.

Oregon Safe Employment Act

In 1973, Oregon enacted the Oregon Safe Employment Act (OSEA), which seeks to ensure safe and healthy working conditions for employees working in Oregon. The Oregon Occupational Safety and Health Division administers the Act and provides jurisdiction over private organizations and governments, local and state. As such, Oregon OSHA can inspect workplaces to ensure compliance.

Employers should equip the workplace with an OSHA poster to ensure state labor law compliance.

Protection Against Workplace Violence

OSEA covers employee protections and employer responsibilities regarding violence in the workplace.

Employees have the right to expect a safe working environment that covers the safety from violence, threats, and harassment on the premises. To accommodate the employees’ rights, Oregon employers must  provide the following to promote workplace violence prevention:

• Adopting a workplace violence prevention program / policy that’s communicated to each employee
• Administer regular workplace violence prevention training for all new hires, current employees, and managers / supervisors
• Support victims of workplace violence while ensuring a trusting and respectful relationship between employees and managers
• Implement consistent and fair disciplinary procedures for workplace violence incidents
• Seek help from threat-assessment psychologists, social service agencies, law enforcement, or other sources when necessary

Effective January 1, 2026, under SB 537, workplace violence protections expand to include specific, additional rules for Oregon healthcare workers. This requires healthcare employers to provide annual training to employees and security personnel, implement flagging and reporting systems for potentially dangerous individuals, and allow employees to only display his or her first name on employee badges.

Oregon Discrimination Laws

In addition to federal laws for equal opportunity employment and protections against discrimination, employers must also comply with certain state laws regarding discrimination. 

Harassment and Discrimination Policy

The Oregon Workplace Fairness Act (OWFA) requires all Oregon employers to have a written harassment and discrimination policy containing procedures and practices for the reduction and prevention of discrimination against individuals which fall under Oregon’s protected categories. 

Protected classes are considered any of the following: 

• Race
• Color
• Religion
• Sex (including pregnancy)
• Sexual orientation
• National origin
• Marital status
• Age

Policies created under OWFA must also:

• Provide a process for reporting prohibited conduct and identify the individual in the organization that is responsible, including at least one alternate, for taking complaints
• Describe the new five-year statute of limitations applicable to employee claims of prohibited conduct
• State that the employer “may not require or coerce an employee to enter into a nondisclosure or nondisparagement agreement” and include an explanation of those terms as described under the OWFA
• Explain that an employee claiming discrimination, harassment, or sexual assault may voluntarily request an agreement that provides for nondisparagement and nondisclosure language, and a no-rehire provision, otherwise prohibited by the OWFA
• Advise employers and employees to document any incidents involving conduct prohibited by Oregon discrimination law 

For ease-of-use, Oregon has created a sample OWFA Policy for employers in both English and Spanish. 

Employers must make an OWFA policy available to every employee in the workplace. New employees must be given a copy of the policy at the time of hire. Also, any employee submitting a complaint of discrimination, harassment, or sexual assault must be given a copy of the policy. 

Oregon Protection for Victims of Domestic Violence, Harassment, Sexual Assault & Stalking

Under ORS 659A, employers cannot discriminate against an individual if he or she is a victim of domestic violence, harassment, sexual assault, bias crime, or stalking.

Employers must also provide reasonable changes to support employees experiencing domestic violence, harassment, sexual assault, bias crimes, or stalking OR are the parent or guardian of the victim. An employer’s reasonable changes include transfer, reassignment, modified schedule, unpaid leave, changed work number, changed workstation, installed lock, new safety procedure, or other adjustment after threatened or actual events.

In addition, employers with 6 or more employees must provide victims protective leave to find legal or law enforcement assistance, get mental treatment / mental health support, or change his or her living situation

Oregon Pregnancy Accommodations

Employers with 6 or more employees must take action to make reasonable accommodations for an employee experiencing limitations related to pregnancy, childbirth, or a related medical condition such as lactation. 

Reasonable accommodations can include: 

• The acquisition or modification of equipment or devices
• Longer and more frequent breaks 
• Manual labor assistance 
• Reasonable periods of leave
• The modification to work schedules as well as job assignments

Under Oregon Pregnancy Accommodation and discrimination protection laws, employers may not take any of the following actions as a result of pregnancy, childbirth, or a related medical condition such as lactation:

• Deny employment opportunities to an employee or candidate based on a need for reasonable accommodation 
• Deny reasonable accommodations for known limitations, unless the given accommodation regarding the employee or candidate would cause an undue hardship
• Take an adverse employment action, discriminate, or retaliate because an applicant or employee inquired about, requested, or used reasonable accommodation 
• Require applicants or employees to accept accommodations that are unnecessary
• Require an employee to take family leave or any other leave if the employer has the ability to make alternate reasonable accommodations

Oregon Workers' Compensation Laws

Oregon Workers’ Compensation Law pays for workers’ medical treatment and lost wages due to a work-related injury and / or illness. Oregon employers with at least one employee, full or part-time, must carry workers’ compensation insurance or be self-insured.

Workers’ compensation insurance not only protects workers but also protects employers by shielding the business from liability lawsuits that might result from work-related injuries or illnesses.

Employers should be aware of the following topics regarding Oregon Workers' Compensation: 

• Exceptions
• Injury / Incident Reporting Process
• Workers' Comp Benefits
• Covered Medical Treatments
• Workers' Comp Audits
• Posting Requirements

Whether an Oregon-based employer is applying for workers' compensation coverage for the first time or is looking to change the current insurer, employers will need a good Oregon insurance broker. 

Oregon Unemployment Insurance

Oregon unemployment insurance aims to help employees in the state that are unfortunate enough to have been laid off or otherwise qualify for unemployment. While unemployment insurance is administered by the state, employers still have some responsibilities.

For starters, Oregon employers must generally provide unemployment insurance to employees if:

The employer pays $1,000 or more to employees in a single calendar quarter

OR

Has at least one employee in each of 18 weeks during a calendar year

Oregon private employers must also pay a quarterly tax directly to the State of Oregon. For domestic employers, this is done annually. State and federal government employers, on the other hand, must reimburse the state for UI benefits paid to former employees. 

Local governments and non-profit private sector employers have the option of choosing either of the above two options.

The Oregon Unemployment Insurance tax rate for new employers is 2.4% of taxable wages up to $56,700 per employee for the 2026 calendar year. The minimum taxable rate is 0.9%, while the maximum rate is 5.4%.

Other employer responsibilities include:

• Registering through the Secretary of State’s Office using the Central Business Registry
• Wage Reporting
• Recordkeeping

Many businesses in Oregon require unemployment insurance, which is a key step in the business registration process. Employers looking to start a business in Oregon or expand operations in the state should review the state’s business registration requirements and begin the process with a business registration service.

Oregon Employment Noncompetition Agreements

Under the Oregon Bureau of Labor and Industries (BOLI), several conditions are required to have a valid agreement that restricts the kinds of work that an employee may perform and where it may occur once the employee has separated from the employer.

To have a valid noncompete or noncompetition agreement, the employee must either:

Receive written notice that the agreement is a condition of employment at least two weeks before employment starts

OR

Enter into the agreement upon a bona fide advancement of the employee by the employer

In addition, a non-competition agreement may also be void unless:

• The employee meets the criteria for a salaried exempt employee whose annual income at termination exceeds a minimum amount adjusted each year for inflation
• The employer has an interest to protect, such as trade secrets, sensitive / confidential business or professional information (including product development plans, launch plans, marketing strategy, or sales plans)

The employer must also provide a signed, written copy of the terms of the noncompetition agreement to the employee within 30 days after the employee’s termination.

For a non-competition agreement to be valid, an employee’s annual gross salary, plus commissions, must exceed $119,541 at termination in 2026. Note that the threshold amount adjusts each year in accordance with changes to inflation.

Oregon Labor Law Posting Requirements

Oregon employers are required to display the following Oregon Labor Law Posters in a clearly visible location where employees can regularly view them. Employers with more than one work location are generally required to display a poster at each worksite.

Posters required for all employers:

• “Know Your Rights: Workplace Discrimination is Illegal”
• Federal Family and Medical Leave Act (FMLA)
• Federal Minimum Wage
• Federal Polygraph Protection Notice
• Federal USERRA (military rights)
• Oregon Breaks / Overtime
• Oregon Equal Pay
• Oregon Family Leave Act
• Oregon Minimum Wage
• Oregon OSHA (Occupational Safety and Health Administration)
• Oregon Protections for Victims of Domestic Violence, Harassment, Sexual Assault & Stalking
• Oregon Sick Time
• Paid Leave Oregon

Employers of agricultural workers, large retail, hospitality, or food service employers with 500 plus employees, and live entertainment employers may have employer-specific workplace policies or notices required.

For help with labor law posting compliance, consider a labor law poster subscription or e-update service.

Oregon Recordkeeping Requirements

Along with labor law posting requirements, Oregon employers must maintain compliance with recordkeeping requirements. Employers must keep the following records:

• Wages, Hours, and Payroll
• Unemployment Insurance
• Safety and Health
• Workers’ Compensation
• Child Labor Records / Certificates

Personnel Files

Oregon employers must provide the following information in an employee’s personnel file:

• Job announcements
• Applications
• Resumes
• Records of promotion
• Pay increase documentation
• Performance reviews
• Supervisor notes pertaining to named personnel actions
• Disciplinary actions; records of verbal and written warnings
• Notices of termination

Employers must keep an employee’s records for at least 60 days after termination. Any records that have been requested by an employee must be produced within 45 days of the employee’s request.

The Oregon Secretary of State website provides a general records retention schedule with detailed information on record requirements, minimum records to maintain, and the minimum time records are required to be held.

Get Help With Oregon Labor Laws

Oregon has specific labor laws that vary by geographic region and cover most employment situations. These labor laws were created to give guidance to the employer and to protect employees. Research and understanding the various labor laws will ensure employers' adherence to Oregon law and reduce payroll errors. 

Oregon is known for its frequent legislative updates when it comes to labor laws, and so it is crucial to have an Oregon Payroll and HR Service that can support compliance, HR, and payroll operations.

Contact us today to get help, or find a provider in Oregon today.

Guest Author: Scott Herson-Hord

Scott Herson-Hord is the CEO of Great Northern Staff Administrators (GNSA), an Oregon payroll services company that specializes in serving small to mid-size businesses with administrative solutions to streamline back-office processes from benefits to human resources. Starting his career in finance and working more than 10 years as a controller for various companies, Scott leveraged this experience over the next 22 years with GNSA to become one of the pacific northwest’s foremost experts in human capital management (HCM).