Oregon Labor Laws 2026: A Complete Guide to Wages, Breaks, Overtime, and More

Oregon employers with 10 or more employees (six or more in Portland) must provide 40 hours of paid sick leave per year. Sick leave accrues at one hour for every 30 hours worked. SB 69 (effective September 26, 2025) codified that paid sick leave can be used for any reason that also qualifies for Paid Leave Oregon.

SB 1108 (effective January 1, 2026) added blood donation as a qualifying use for paid sick leave, provided the donation program is voluntary and accredited by the American Red Cross or the American Association of Blood Banks.

Paid Leave Oregon (PLO) allows eligible workers to receive up to 12 weeks of wage replacement for qualifying family, medical, or safe leave. The contribution rate remains at 1% of gross wages. Employees contribute 60% (0.6% of gross wages). Employers with 25 or more employees contribute 40%.

The 2026 contribution wage base is $184,500 per employee. Any payroll system still capped at $176,000 (the 2025 base) is under-withholding.

As of January 1, 2026, BOLI enforces PLO job protection, anti-discrimination, and retaliation provisions. The Oregon Employment Department previously held this role (SB 69). Private disability insurers can no longer require employees to exhaust PLO before receiving short-term disability benefits (SB 1148, effective January 1, 2026).

Adoption and foster care leave is fully incorporated into PLO. The transition completed January 1, 2025. SB 69 also allows employers to require a fitness-for-duty certification from a health care provider before reinstating a worker after PLO medical leave, provided the employer has a uniformly applied policy.

FMLA allows eligible employees to take up to 12 weeks of unpaid leave for specific family and medical reasons, with job protection.

• Qualifying Conditions: These include serious health conditions, bonding with a newborn, or caring for a sick family member. Oregon’s Family Leave Act (OFLA) offers broader protections than federal FMLA.
• Paid Leave Oregon: Starting in 2024, Paid Leave Oregon allows eligible workers to receive wage replacement during family leave. Under this program, workers shall be entitled to up to 12 weeks of paid leave for family, medical, and safe leave purposes. It’s funded by contributions from both employees and employers.
• Unlike the Oregon Family Leave Act (OFLA), which offers unpaid job-protected leave, Paid Leave Oregon provides paid leave benefits and runs separately from OFLA.

This type of leave allows employees to take time off from work to manage the legal and administrative tasks associated with the adoption or placement of a child into foster care.

• Per SB 1515, OFLA will provide up to two additional weeks of leave to employees engaging in the fostering or adoption process. However, this is only available until December 31, 2024. 
• Beginning in 2025, adoption or foster care leave will be incorporated into Paid Leave Oregon (PLO), making it a protected reason for leave under the said program. 

Oregon workers are entitled to bereavement leave under the Oregon Family Leave Act (OFLA).

• Duration: Employees can take up to 2 weeks of leave per death, with a maximum of 4 weeks per year.
• Coverage: Leave can be used to attend funerals, make arrangements, or grieve.

Parental leave is available under OFLA and FMLA for bonding with a newborn, newly adopted, or foster child.

• Duration: Up to 12 weeks of job-protected leave.
• Paid Leave Oregon: Employees may also receive wage replacement under Paid Leave Oregon starting in 2024​

Oregon does not require employers to provide paid or unpaid holiday leave. It is at the employer’s discretion whether to offer paid time off for holidays.

Vacation leave is not required by Oregon law. Employers who offer vacation time are free to set their own policies regarding accrual and usage.

Employees can take unpaid time off to attend school activities related to their children under the Oregon Family Leave Act.

• Limit: Up to 12 weeks may be available for this purpose.

• Under the Oregon Family Leave Act (OFLA), eligible employees are entitled to unpaid leave in cases of a public health emergency or other emergencies, such as natural disasters, when it prevents the employee from working or their child’s school or daycare is closed. Additionally, leave can be used to address personal health or safety, family care needs, or situations that make it unsafe to work.
• Law Enforcement Officers’ Emergency Leave: Oregon law provides specific provisions for law enforcement officers who may be eligible for emergency leave when dealing with situations that compromise their health or safety, or that of their family members.
• Employees generally qualify for up to 12 weeks of leave under OFLA for qualifying emergency situations, with additional leave in some cases, such as for pregnancy or military-related needs.

Federal and Oregon laws ensure job protection for employees who take leave for military service.

• Uniformed Services Employment and Reemployment Rights Act (USERRA): Guarantees job restoration for employees after military duty.

Oregon does not mandate leave for volunteering, though some employers offer this benefit as part of their company policy.

This type of leave, typically related to investigations or disciplinary actions, is not specifically required by Oregon law but may be granted by employers.

Oregon does not have specific laws requiring paid or unpaid leave to vote, as the state votes by mail. However, employers cannot retaliate against employees for voting.

Oregon law requires that employers allow employees to take unpaid leave for jury duty.

• Protection: Employers cannot fire or penalize employees for taking jury duty leave​.

Employees may take leave under FMLA/OFLA for organ or bone marrow donation.

• Duration: Up to 12 weeks of job-protected leave.

Oregon does not require employers to provide leave for donating blood, though some employers may offer this benefit voluntarily.

Employees are entitled to unpaid leave if summoned to appear as a witness in a legal proceeding.

• Protection: Employers cannot terminate or retaliate against employees for fulfilling their civic duty.

Oregon law provides employees with protected leave if they or a family member are victims of domestic violence, sexual assault, or stalking.

• Purpose: Leave can be used to seek medical treatment, legal assistance, or safety measures​.

Crime victims, including survivors of domestic violence, are entitled to protected time off to attend court or recover from trauma.

• Duration: Time allowed depends on the needs of the victim and the court proceedings.

Oregon uses a tiered minimum wage system based on geographical regions to reflect the varying cost of living across the state. This system divides Oregon into three regions: Portland Metro, Standard Counties, and Non-Urban Counties.

• Portland Metro Minimum Wage: As of July 1, 2024, the minimum wage in the Portland Metro area is $15.95 per hour, reflecting the higher cost of living in this region. Portland Metro includes cities such as Beaverton, Gresham, and Hillsboro, all located near Portland.
• Standard Counties Minimum Wage: Most counties in Oregon fall under the “standard” category, where the minimum wage is set at $14.70 per hour. This rate applies to areas where the cost of living is more moderate compared to the Portland Metro area.
• Non-Urban Counties Minimum Wage: In more rural or less populated parts of the state, such as counties like Baker, Grant, and Harney, the minimum wage is set at $13.70 per hour, recognizing the lower cost of living in these areas.

These wages are adjusted annually based on the Consumer Price Index (CPI) to keep up with inflation.

• Student Learners and Trainees: Oregon allows employers to pay no less than 75% of the minimum wage to student learners in approved vocational training programs, ensuring they gain work experience while complying with labor protections.
• Workers with Disabilities: Employers can pay sub-minimum wages to workers with disabilities but not lower than the required hourly rate and only with proper certification under the Fair Labor Standards Act (FLSA).

Certain employees in Oregon are exempt from the state’s minimum wage and overtime rules due to the nature of their job duties or industry. These exemptions allow for flexibility in payment structures while ensuring compliance with state and federal laws.

Key exemptions include:

• Outside Salespersons: Workers who primarily engage in sales activities outside of their employer’s place of business are exempt from both minimum wage and overtime pay. Their work is generally based on commissions rather than an hourly wage.
• Agricultural Workers on Small Farms & Livestock Production: Some employees working on small farms or in livestock production are exempt from minimum wage and overtime laws. These exemptions are typically based on the size of the operation and the nature of the work.
• Student Workers: Certain student workers, particularly those engaged in vocational training programs or work-study roles, may not be covered by minimum wage and overtime requirements.
• Casual Babysitters & Companions to the Elderly: Individuals employed casually as babysitters or providing companionship to the elderly are exempt from minimum wage and overtime pay. These roles often involve informal or part-time arrangements.
• Executive, Administrative, or Professional Employees: Workers classified as “executive,” “administrative,” or “professional” under Oregon labor laws are generally exempt from minimum wage and overtime requirements. These classifications often require the employee to have a certain level of decision-making authority, managerial duties, or specialized skills.

Oregon is an at-will employment state, meaning employers can terminate employees at any time and for any reason, as long as it’s not illegal (e.g., discrimination or retaliation). Similarly, employees may resign from their jobs without providing a reason or notice.

• Exceptions: Employees cannot be fired for discriminatory reasons, retaliation for filing complaints, or for exercising protected rights under Oregon labor laws.

Oregon is not a right-to-work state, meaning employees in unionized workplaces may be required to pay union dues or fees, even if they are not union members.

Employers in Oregon can perform background checks and drug tests, but they must comply with state regulations.

Oregon ban the box law prohibits employers from asking about criminal history on job applications. Employers may ask about criminal history only after making a conditional offer. HB 3187 (effective September 26, 2025) added similar restrictions for age and graduation dates, prohibiting employers from requesting this information before an initial interview or a conditional offer.

Oregon’s Equal Employment Opportunity policy is aimed at ensuring all individuals have equal access to employment opportunities without facing discrimination based on various protected characteristics.

This policy is enforced to maintain fair and inclusive workplaces across the state.

• Protection Against Discrimination: EEO laws in Oregon prohibit discrimination in employment based on race, color, national origin, gender, sexual orientation, age, disability, marital status, and other protected categories.
• Inclusive Employment Practices: Employers are expected to make hiring, firing, promotion, compensation, and other employment decisions based on merit and qualifications rather than discriminatory factors.
• Accommodation Requirements: Employers must provide reasonable accommodations for employees with disabilities or religious needs, unless doing so would impose an undue hardship on the business.
• Complaint Process: Employees who believe they have faced discrimination or harassment can file a complaint with Oregon’s Bureau of Labor and Industries (BOLI) or the Equal Employment Opportunity Commission (EEOC).

HB 4111 (effective June 5, 2026) prohibits employers from discharging, discriminating against, or retaliating against a worker who updates their federal employment authorization documents, such as a revised Form I-9 following a lawful immigration status change. A narrow safe harbor applies if the adverse action is expressly required by federal law. Train all managers not to initiate discipline when a worker voluntarily submits updated work authorization credentials.