The Oregon Labor Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. Oregon utilizes a highly specific, three-tiered minimum wage system based on the geographic location where the employee performs their work. Rates are adjusted annually every July 1st based on inflation.

Current tiered rates (active through June 30, 2026):

• Portland Metro Area: $16.30 per hour (Applies to locations within the Metro Urban Growth Boundary, including parts of Clackamas, Multnomah, and Washington counties).

• Standard Counties: $15.05 per hour (Applies to Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, Yamhill, and any parts of Clackamas, Multnomah, and Washington counties that sit outside the Urban Growth Boundary).

• Non-Urban Counties: $14.05 per hour (Applies to Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties).

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Oregon is one of the strictest states in the country regarding tipped employees. The state completely prohibits the use of a sub-minimum wage or a "tip credit."

The Tip Credit Ban

• Employers in Oregon cannot use an employee's tips to count toward their minimum wage obligation.

• All tipped employees (such as waitstaff, bartenders, and bellhops) must be paid the full, standard minimum wage for their specific geographic region (Portland Metro, Standard, or Non-Urban) directly from the employer, regardless of how much they earn in tips.

Current tipped minimum wage rates (active through June 30, 2026)

• Portland Metro Area: $16.30 per hour + tips

• Standard Counties: $15.05 per hour + tips

• Non-Urban Counties: $14.05 per hour + tips

Oregon generally follows the standard 40-hour workweek rule for most businesses. However, the state enforces incredibly strict daily overtime and maximum-hour caps for the manufacturing sector, as well as newly phased-in thresholds for agricultural workers.

Standard employees (the 40-hour rule)

• Most non-exempt employees in Oregon must be paid 1.5 times their regular rate of pay for all hours worked over 40 in a single, 7-day workweek.

• No daily overtime: for standard industries (retail, hospitality, office, etc.), Oregon does not require daily overtime. An employee can work more than 8 or 10 hours in a single day without triggering overtime, provided their total weekly hours do not exceed 40.

Manufacturing and canneries (the 10-hour rule)

Employees working in mills, factories, canneries, and manufacturing establishments are subject to special overtime and maximum-hour laws:

• Daily overtime: must be paid 1.5x their regular rate for any hours worked over 10 hours in a single day.

• The "Greater Of" Rule: If a manufacturing employee triggers both daily overtime and weekly overtime in the same week, the employer must calculate both amounts and pay the employee whichever total is greater.

• Maximum hour caps: Manufacturing employees cannot legally work more than 13 hours in a 24-hour period, nor can they work more than 55 hours in a single workweek (unless they explicitly consent in writing to work up to 60 hours).

Agricultural workers (2026 threshold)

Under Oregon's agricultural overtime phase-in laws, farm and agricultural workers must be paid overtime for any hours worked over 48 hours in a workweek during the 2025 and 2026 calendar years. (Note: This threshold will permanently drop to 40 hours on January 1, 2027).

Oregon enforces highly specific break laws that strictly dictate exactly when an employee must take their break based on the total length of their scheduled shift.

Mandatory unpaid meal periods 

Employers must provide non-exempt employees with an uninterrupted, unpaid meal period of at least 30 minutes in which the employee is completely relieved of all duties.

• Shifts under 6 hours: a meal period is strictly optional and not legally required.

• Shifts of 6 to 8 hours: one 30-minute meal period is required.

• Shifts of 14 hours or longer: a second 30-minute meal period is required.

Strict meal timing rules

Oregon dictates exactly when the meal period must occur during the shift:

• If the shift is 7 hours or less: the meal period must be taken between the second and fifth hour worked.

• If the shift is more than 7 hours: the meal period must be taken between the third and sixth hour worked.

(Compliance exception: under certain strict conditions, tipped employees may voluntarily sign a BOLI-approved waiver to skip their unpaid meal break, provided they are given an opportunity to consume food while continuing to work and are paid for that time).

Mandatory paid rest breaks 

Oregon requires employers to provide uninterrupted, paid rest breaks based on the number of hours worked. These rest periods must be provided approximately in the middle of each 4-hour work segment.

• Adult employees (18 and older): must receive a paid 10-minute rest break for every 4 hours worked, or major portion thereof. (Note: BOLI legally defines a "major portion" as any segment lasting at least 2 hours and 1 minute).

• Minor employees (under 18): must receive a longer paid 15-minute rest break for every 4 hours worked, or major portion thereof.

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Oregon has some of the most robust, employee-friendly leave laws in the nation. While holidays and vacations are largely left to employer discretion, the state strictly mandates two entirely separate protected leave programs: Oregon Sick Time and Paid Leave Oregon.

Vacation leave

• No state mandate: Oregon does not require private-sector employers to provide paid or unpaid vacation time.

• The payout rule: if you choose to offer paid vacation, you must establish a clear, written policy. Under BOLI rules, if an employee resigns or is terminated, you are legally required to pay out all accrued, unused vacation time in their final paycheck unless your written policy explicitly states that unused time is forfeited upon separation.

Sick time

• Accrual and frontloading: all employees earn 1 hour of protected sick time for every 30 hours worked. Alternatively, employers can bypass tracking by "frontloading" 40 hours at the beginning of the year. Employees can begin using this time after 90 days of employment.

• Paid vs. unpaid (The Portland Rule): 

  • Paid sick time: legally required if an employer has 10 or more employees anywhere in the state.

  • (The Portland Exception): If the employer maintains any location in Portland, the threshold drops, and they must provide paid sick time if they have 6 or more employees statewide.

  • Unpaid Sick Time: Employers who do not meet these size thresholds must still provide 40 hours of unpaid, job-protected sick time.

Paid leave (mandatory)

• The requirement: Oregon mandates a state-run Paid Family and Medical Leave program that provides employees with up to 12 weeks of paid, job-protected time off for family, medical, or safe leave.

• Payroll funding (configuration warning): this program is funded by a mandatory payroll tax of 1% of an employee's gross wages.

  • Large employers (25+ employees): the employer pays 40% of the tax, and 60% is deducted from the employee's paycheck.

  • Small employers (Under 25 employees): the employer pays nothing out of pocket, but must still configure their payroll system to deduct the 60% employee contribution from their staff's paychecks.

Holidays

• Private employers in Oregon are not legally required to provide paid holidays, unpaid time off for holidays, or premium pay (e.g., time-and-a-half) for working on a recognized holiday. Any holiday leave or extra compensation is offered strictly at the employer's discretion.

→ Learn more about Deputy's leave management software

In Oregon, minors are generally protected by the same baseline employment laws as adults—including minimum wage, overtime, and anti-discrimination protections. However, the Bureau of Labor & Industries (BOLI) enforces strict break enhancements, hour caps, and hiring requirements specifically for workers under 18.

The annual employment certificate (mandatory for employers) 

Unlike states where the youth obtains a work permit, Oregon requires the employer to be certified. Before an employer can legally hire anyone under the age of 18, they must apply for and receive an Annual Employment Certificate from BOLI. This certificate must be renewed yearly and posted visibly in the workplace.

Enhanced break requirements for all minors (under 18)

• Paid rest breaks: all minors must receive a 15-minute paid rest break for every 4-hour segment of work (or major portion thereof). (Note: This is 5 minutes longer than the adult requirement).

• Unpaid meal breaks: minors must receive a 30-minute unpaid, uninterrupted meal break for any shift lasting 6 hours or longer.

• Compliance note: while 16- and 17-year-olds may occasionally qualify for "on-duty" paid meal break exceptions under extreme circumstances, 14- and 15-year-olds can NEVER skip their unpaid meal break. They must be completely relieved of all duties for the full 30 minutes.
  

The "adequate work" penalty (show-up pay) 

• If an employer requires a minor to report for a scheduled shift but sends them home early (e.g., because the store is slow), the employer must provide "adequate work" pay. The employer is legally obligated to pay the minor for at least one-half of their originally scheduled hours, or one hour's wages, whichever is greater.
  

Scheduling limits for minors 14–15-years-old

• General rule: cannot work during standard school hours.

• When school is in session:

  • Max 3 hours on school days.

  • Max 8 hours on non-school days (e.g., weekends).

  • Max 18 hours per week.

  • Curfew: may only work between 7:00 AM and 7:00 PM.

• When school is not in session (summer):

  • Max 8 hours per day / 40 hours per week.

  • Curfew: may work between 7:00 AM and 9:00 PM (From June 1st through Labor Day).
    

Scheduling limits for minors 16–17-years-old

• Working hours: minors aged 16 and 17 have no daily hour restrictions and no curfews. They can be scheduled at any time of day.

• The 44-hour cap: unlike adults, 16- and 17-year-olds are strictly capped at working a maximum of 44 hours per week. Employers cannot schedule them for more hours than this unless they apply for and receive a Special Emergency Overtime Permit directly from BOLI.

Hiring
Oregon civil rights laws prohibit any discrimination based on race, color, religion, sex, sexual orientation, national origin, marital status, and age. If the individual is 18 years of age or older, the individual’s juvenile record has been expunged under ORS 419A.260 and 419.262. Employers who have six or more employees cannot discriminate based on uniformed service or disability. 

Firing
Employers in Oregon have the right to terminate employees at will for nearly any reason and no reason at all as long as the reason is not discriminatory.

Oregon is currently the only state with a statewide predictive scheduling law. The Fair Workweek Act requires strict advance notice for schedules and enforces heavy premium pay penalties for last-minute changes.

Who is covered? 

This law applies to employers in the retail, hospitality, or food service industries who employ 500 or more employees worldwide.

Advance notice & good faith estimates

• 14-day notice: employers must provide employees with a written, posted work schedule at least 14 calendar days in advance.

• Good faith estimate: upon hiring, employers must provide new employees with a written "good faith estimate" of the median hours they can expect to work each month, and whether they will be expected to work on-call shifts.

Predictability pay (schedule change penalties) 

If an employer changes the schedule after the 14-day notice period has passed, they must pay the employee "predictability pay" in addition to their regular wages earned:

• Added hours or changed shift times (with no loss of hours): the employer must pay 1 extra hour of pay at the employee's regular rate.

• Subtracted hours or canceled shifts: the employer must pay 50% (half-time) of the employee's regular rate for every scheduled hour that was canceled.

The Right to Rest (The "Clopening" Ban)

• Employees are legally entitled to a 10-hour rest period between shifts.

• If an employee voluntarily consents to work a shift that begins less than 10 hours after their previous shift ended, the employer must pay them 1.5 times their regular rate for any hours worked within that 10-hour window.

The "Voluntary Standby List" exception

Employers can legally bypass predictability pay penalties to fill unexpected gaps (like a sudden rush or a sick call-out) by utilizing a Voluntary Standby List. Employees must voluntarily sign a written agreement to be on this list, allowing them to accept last-minute shift offers without triggering schedule-change penalties for the employer.