Oregon — Wage & Hour

Oregon establishes three minimum wage rates based on employer location. The Portland Metro rate applies to employers within the urban growth boundary of a metropolitan service district organized under ORS chapter 268. The Nonurban rate applies to 18 specified counties: Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler. The Standard rate applies to all other areas. Beginning July 1, 2023, rates adjust annually on July 1 based on increases in the Consumer Price Index for All Urban Consumers. The Portland Metro rate is set at $1.25 above the Standard rate; the Nonurban rate is set at $1.00 below the Standard rate.

Source: ORS 653.025 & ORS 653.026

For the period July 1, 2025 through June 30, 2026, Oregon's three minimum wage rates are: Portland Metro $16.30 per hour, Standard $15.05 per hour, and Nonurban $14.05 per hour. The rates reflect a 2.4% Consumer Price Index increase from March 2024 to March 2025, resulting in a 35-cent across-the-board increase from the prior year (when rates were $15.95, $14.70, and $13.70, respectively).

The Portland Metro rate applies within the urban growth boundary of the metropolitan service district organized under ORS chapter 268. This boundary encompasses portions of Clackamas, Multnomah, and Washington Counties. Employers can determine whether a specific address falls within the boundary using the Metro interactive map tool available at oregon.gov/metro.

The Standard rate applies to Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, and Yamhill counties, plus portions of Clackamas, Multnomah, and Washington counties that lie outside the urban growth boundary.

The Nonurban rate applies to the 18 counties enumerated in ORS 653.025(2)(a): Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler.

These rates expire June 30, 2026. The next inflation-adjusted rates take effect July 1, 2026. The Bureau of Labor and Industries calculates and announces the new rates by April 30 of each year. For the July 1, 2026 – June 30, 2027 rates (announced April 28, 2026), see the BOLI minimum wage schedule page or the "Annual inflation adjustment mechanism" section of this guide.

Applicability to all hours worked

All hours worked in Oregon on or after 12:01 a.m. on July 1, 2025 must be compensated at the new rates, even if the work period or workday straddles June 30 and July 1. For employees whose shift crosses midnight, the employer must pay the prior year's rate for hours worked before 12:01 a.m. on July 1 and the new rate for hours worked on or after that time. OAR 839-020-0030.

Source: Oregon BOLI Minimum Wage Poster (PDF) | ORS 653.025 | BOLI Minimum Wage page

Beginning July 1, 2023, Oregon's three-tier minimum wage rates adjust automatically each year based on inflation. By April 30 of each year, the Oregon Bureau of Labor and Industries (BOLI) calculates an adjustment to the Standard minimum wage rate based on any increase from March of the prior year to March of the current year in the U.S. City Average Consumer Price Index for All Urban Consumers for All Items (CPI-U), as published by the Bureau of Labor Statistics. The wage increase is rounded to the nearest five cents. The Portland Metro rate is then set at $1.25 above the adjusted Standard rate, and the Nonurban rate is set at $1.00 below the adjusted Standard rate, as mandated by ORS 653.025.

All three adjusted rates take effect simultaneously on July 1 of each year and remain in effect through June 30 of the following year. For employees whose work period or workday straddles June 30 and July 1, employers must pay two different rates: the prior year's rate for hours worked before 12:01 a.m. on July 1, and the new rate for all hours worked on or after 12:01 a.m. on July 1.

BOLI publishes the calculated rates for the upcoming July 1 effective date on its minimum wage schedule page, typically by late April. Employers must update their workplace posters to reflect the new rates; BOLI makes updated posters available for free download (in English, Spanish, and five additional languages) beginning approximately mid-June each year.

Next scheduled adjustment: July 1, 2026

The next annual adjustment takes effect July 1, 2026. For the specific Portland Metro, Standard, and Nonurban rates effective July 1, 2026 through June 30, 2027, see the BOLI minimum wage schedule page linked below, which will reflect the rates calculated by April 30, 2026.

Source: ORS 653.025 | ORS 653.026 | BOLI Minimum Wage Schedule

Oregon requires employers to provide both unpaid meal periods and paid rest breaks to non-exempt employees. These requirements, codified in OAR 839-020-0050, impose obligations that exceed federal law—the Fair Labor Standards Act (FLSA) does not mandate meal or rest breaks.

Meal periods

For any work period of six to eight hours, employers must provide at least one uninterrupted 30-minute meal period during which the employee is relieved of all duties. No meal period is required if the work period is less than six hours. For work periods exceeding eight hours, additional meal periods are required: a work period of 10 hours requires two 30-minute meal periods; a work period of 14 hours requires three; and so on.

The timing is specific. If the work period is at least six hours but less than seven hours, the meal period must be taken after the conclusion of the second hour worked and completed before the commencement of the fifth hour worked (i.e., during hours 3–5). If the work period is seven hours or longer, the meal period must be taken after the conclusion of the third hour and completed before the commencement of the sixth hour (during hours 4–6).

The meal period must be "continuous and uninterrupted." If an employee is not relieved of all duties for the full 30 continuous minutes—even if the interruption is a single moment or the period is 29 rather than 30 minutes—the employer must pay the employee for the entire 30-minute period. An employee generally cannot waive the meal period, even voluntarily; Oregon courts have held that employers who permit employees to skip or shorten meal breaks face liability for the full period.

Rest breaks

Employers must provide a paid, uninterrupted 10-minute rest break for every segment of four hours worked, or for every "major portion" of four hours. "Major portion" means any period exceeding two hours—so a shift of 2 hours and 1 minute triggers the rest-break obligation. A typical eight-hour shift (excluding the unpaid meal period) requires two 10-minute paid rest breaks.

The rest break must be scheduled as close as practicable to the middle of each four-hour segment. Employers may not allow employees to combine rest breaks with meal periods, nor deduct rest periods from the beginning or end of the shift to allow an early departure.

Minors

Employees under 18 years of age receive enhanced protection. Minor employees are entitled to a paid rest break of at least 15 minutes (rather than 10) for each four-hour segment or major portion thereof. The 30-minute meal-period rule applies in full to minors, and minors aged 14 and 15 may not use any of the limited exceptions available to adults.

Exceptions

OAR 839-020-0050 provides narrow exceptions. An employer may provide a paid meal period of less than 30 minutes (but no less than 20 minutes) if industry practice or custom has established such a period and the employee is relieved of all duties. An employer may claim an "undue hardship" exception if providing a 30-minute meal period would impose significant difficulty or expense; in that case the employer must still provide adequate paid time to eat, rest, and use the restroom, plus all required rest breaks, and must give each affected employee notice on a BOLI-prescribed form. Tipped food and beverage servers may voluntarily waive their meal period under specific conditions set forth in the regulation. Collective bargaining agreements may modify these rules if they specifically address meal and rest periods.

Enforcement and penalties

BOLI may assess civil penalties of up to $1,000 per violation of the meal and rest period rules. Employees may also file a wage claim with BOLI or bring a private lawsuit. Oregon courts have upheld substantial penalty awards—including up to 30 days of wages for each affected employee—when employers systematically fail to provide compliant breaks or provide breaks that are even slightly short of the required duration.

Source: OAR 839-020-0050 | BOLI Meals and Breaks

Oregon requires employers to pay overtime compensation at one and one-half times the employee's regular rate of pay for all hours worked in excess of 40 hours in a workweek. This requirement applies to all non-exempt employees and is codified in ORS 653.261(1)(a), which authorizes the Commissioner of the Bureau of Labor and Industries to adopt rules prescribing minimum conditions of employment, including overtime. The implementing regulation is OAR 839-020-0030.

Threshold and rate

OAR 839-020-0030(1) specifies that "all work performed in excess of forty (40) hours per week must be paid for at the rate of not less than one and one-half times the regular rate of pay when computed without benefits of commissions, overrides, spiffs, bonuses, tips or similar benefits pursuant to ORS 653.261(1)." The regulation further defines "similar benefits" to include "discretionary bonuses, gifts, profit sharing, thrift and savings program, trusts, reimbursements for expenses, holiday, or vacation pay."

Workweek definition

OAR 839-020-0030(2)(a) defines "work week" as "any seven (7) consecutive twenty four (24) hour period as determined by the employer." The regulation permits the employer to change the beginning of the workweek, but only if "the change is intended to be permanent and is not designed to evade the overtime requirements of this rule." Each workweek stands alone for purposes of overtime computation; hours may not be averaged across multiple weeks.

Regular rate and fluctuating workweek

OAR 839-020-0030(2)(b) defines "regular rate" for overtime purposes as "a regular hourly rate," which in no case may be less than the applicable statutory minimum wage. For salaried employees, OAR 839-020-0030(3) permits the fluctuating workweek method: "Where there is a clear mutual understanding of the parties that the fixed salary is compensation for the hours worked each work week, whatever their number, such a salary arrangement is permitted" if the salary is sufficient to provide at least the minimum wage for every hour worked in the weeks with the greatest hours, "and if the employee receives overtime compensation, in addition to such salary, for all hours worked in excess of 40, at a rate not less than one-half the regular rate of pay." Under this method, the regular rate for a given workweek is calculated by dividing the salary by the number of hours actually worked that week; payment at one-half that rate for overtime hours (in addition to the salary) satisfies the overtime requirement, because the salary already compensated those hours at the regular rate.

OAR 839-020-0030(3) also addresses monthly and semi-monthly salaries: "A monthly salary is subject to translation to its equivalent weekly wage by multiplying by 12 (the number of months) and dividing by 52 (the number of weeks). A semi-monthly salary is translated into its equivalent weekly wages by multiplying by 24 and dividing by 52. Once the weekly wage is arrived at, the regular rate of pay and the amount of any overtime pay is determined as provided by this rule."

Relation to federal law

Oregon's 40-hour weekly overtime threshold matches the federal Fair Labor Standards Act (FLSA) threshold. When both Oregon and federal overtime rules apply, the standard more favorable to the employee governs. Oregon law may cover employers or employees who do not meet FLSA's interstate-commerce or revenue thresholds, and Oregon's exemptions are defined separately (though they often parallel federal exemptions).

Oregon also imposes daily overtime requirements for specific industries: ORS 652.020 requires overtime after 10 hours in a workday for employees of manufacturing establishments, and ORS 653.265 requires the same for employees of canneries, driers, and packing plants. When an employee in one of those industries works more than 10 hours in a day and more than 40 hours in the same workweek, the employer must calculate overtime on both a daily and weekly basis and pay the greater of the two amounts.

Exemptions

OAR 839-020-0030(1) provides that the overtime rule is "[e]xcept as provided in OAR 839-020-0125 to 839-020-0135." OAR 839-020-0130 exempts public employees (employees of the State of Oregon or any political subdivision or quasi-municipal corporation) from OAR 839-020-0030 when other law or a collective bargaining agreement prescribes overtime rules; those public employees are instead subject to ORS 653.268 unless exempt under ORS 653.269. OAR 839-020-0125 cross-references federal FLSA exemptions for employers regulated under the FLSA. White-collar exemptions (executive, administrative, professional, and outside sales employees) are defined in OAR 839-020-0005.

Domestic workers

OAR 839-020-0030(4) provides: "Notwithstanding ORS 653.020, the computation of overtime in any given work week for any domestic worker will include all 'hours worked' as that term is defined in OAR 839-020-0040 through -0046." This provision brings domestic workers—who are otherwise excluded from certain wage protections under ORS 653.020—into the overtime requirement. Domestic workers are entitled to overtime at 1.5× their regular rate for all hours over 40 in a workweek.

Source: ORS 653.261 | OAR 839-020-0030

Oregon imposes strict deadlines for final paycheck delivery that turn on whether the employer terminates the employee or the employee quits, and if the employee quits, whether advance notice was given. The timing rules are codified in ORS 652.140; penalties for late payment appear in ORS 652.150.

Employer-initiated termination or mutual agreement

When an employer discharges an employee or when employment is terminated by mutual agreement, all wages earned and unpaid at the time of the discharge or termination become due and payable not later than the end of the first business day after the discharge or termination. ORS 652.140(1). This applies regardless of whether the termination is for cause, a layoff, or any other reason—if the employer ends the relationship, payment is due by the close of business on the next business day.

Employee quit with at least 48 hours' notice

When an employee who does not have a contract for a definite period quits employment, all wages earned and unpaid at the time of quitting become due and payable immediately if the employee has given to the employer not less than 48 hours' notice, excluding Saturdays, Sundays, and holidays, of intention to quit employment. ORS 652.140(2)(a). The 48-hour notice window does not count weekends or holidays. The statute requires immediate payment upon quitting when proper notice is given; it does not expressly address how an employer should handle an employee whose last day falls on a weekend or holiday, though BOLI guidance suggests employers should arrange for timely payment in such cases.

Employee quit without 48 hours' notice

If the employee has not given the employer the 48-hour notice (excluding Saturdays, Sundays, and holidays), the wages become due and payable within five days, excluding Saturdays, Sundays and holidays, after the employee has quit, or at the next regularly scheduled payday after the employee has quit, whichever event first occurs. ORS 652.140(2)(b). The employer must pay according to whichever deadline arrives sooner.

Special rule for employees who submit time records

ORS 652.140(2)(c) creates a two-stage payment obligation for employees who quit without notice and who are regularly required to submit time records to enable the employer to determine wages due. In that scenario, within five days after the employee quits the employer must pay the employee the wages the employer estimates are due and payable. Then, within five days after the employee submits the time records, all wages earned and unpaid become due and payable. An employer who complies with this two-stage process and pays the estimated amount followed by the remainder within five days of receiving the time records avoids penalty liability under ORS 652.150(1)(b).

Collective bargaining exception

ORS 652.140(5) permits a collective bargaining agreement to establish alternative final-pay timing rules. When a valid CBA addresses final paychecks, the agreement's terms govern instead of the statutory default deadlines.

What "wages" includes

Oregon law defines "wages" broadly. Final pay must include all earned but unpaid compensation: regular wages, overtime pay, and—depending on the terms of any commission or bonus agreement—earned commissions and bonuses. Accrued but unused vacation or paid time off must be paid out only if the employer's policy or employment contract provides for such payout; Oregon does not mandate vacation payout by statute. Any wage component that has accrued and remains unpaid under the terms of the employment arrangement is subject to the final-pay deadline.

Penalties for late payment under ORS 652.150

If an employer willfully fails to pay wages or compensation of any employee whose employment ceases within the time required by ORS 652.140, the employer is subject to a penalty wage. ORS 652.150(1) provides that the wages or compensation of the employee shall continue from the due date at the same hourly rate for eight hours per day until paid or until legal action is commenced. The penalty continues for a maximum of 30 days from the due date.

"Willfully" means the employer is aware of and intends the action (or inaction), whether or not acting with malice or in bad faith. An employer who knows wages are due and consciously decides not to pay on time has acted willfully.

Caps on penalty when written notice is given

ORS 652.150(2) limits the penalty to 100% of the employee's unpaid wages or compensation unless the employee (or someone on the employee's behalf) submits a written notice of nonpayment and the employer fails to pay the full amount of unpaid wages within 12 days after receiving the notice. If the employer pays within 12 days of written notice, the penalty cannot exceed 100% of the unpaid wages. If no written notice is submitted, the penalty likewise may not exceed 100% of unpaid wages.

When the penalty is not capped—because the employer failed to pay within 12 days of written notice—the full eight-hours-per-day, up-to-30-days penalty applies, which can be substantially more than 100% of the underlying wages for employees who work fewer than eight hours per day or for short final pay periods.

Exclusions from the cap

The 100% cap in ORS 652.150(2) does not apply—meaning the full 30-day, eight-hours-per-day penalty is available from day one—when either of the following is true: (a) the employer has violated ORS 652.140 or 652.145 one or more times in the year before the employee's employment ceased, or (b) the employer terminated one or more other employees on the same date that the employee's employment ceased. ORS 652.150(4). These provisions remove the cap for repeat violators and for scenarios in which the employer terminates multiple employees on the same day.

BOLI civil penalty

In addition to the penalty wages payable to the employee, OAR 839-001-0470(4) authorizes the Commissioner of the Bureau of Labor and Industries to assess a civil penalty of up to $1,000 against any person who violates ORS 652.140 or 652.145 or any rule adopted pursuant to those statutes. This administrative penalty is payable to the state and is separate from and cumulative with the penalty wages owed to the employee. BOLI may also recover costs, interest, and attorney fees.

Financial inability defense

An employer may avoid liability for the penalty wage by showing financial inability to pay the wages or compensation at the time the wages or compensation accrued. ORS 652.150(5). This is an affirmative defense; the employer bears the burden of proving it lacked the funds to pay when the wages became due.

Source: ORS 652.140 | ORS 652.150 | OAR 839-001-0470 | BOLI Paychecks FAQ

Oregon imposes daily overtime requirements on employees of manufacturing establishments and employees of canneries, driers, and packing plants—an obligation that exceeds the federal Fair Labor Standards Act and Oregon's general 40-hour weekly overtime rule. These requirements are codified in ORS 652.020 (manufacturing) and ORS 653.265 (canneries, driers, and packing plants).

Manufacturing establishments — 10-hour daily threshold

ORS 652.020 prohibits employment in "any mill, factory or manufacturing establishment in this state more than 10 hours in any one day," with overtime required at one and one-half times the regular wage for any hours worked beyond 10 in a single day. The statute permits up to three additional overtime hours (for a maximum of 13 hours in one day) but requires the 1.5× premium for all hours over 10.

OAR 839-001-0100(11)(a) defines "manufacturing establishment" as "any place where machinery is used for ... the process of making goods or any material produced by machinery; anything made from raw materials by machinery; the production of articles for use from raw or prepared materials by giving such materials new forms, qualities, properties or combinations, by the use of machinery." The definition is broad and machinery-centered: if machinery is used to make goods from raw or prepared materials, the facility is a manufacturing establishment subject to daily overtime.

Canneries, driers, and packing plants — 10-hour daily threshold

ORS 653.265(2)(d) requires employers to pay overtime at one and one-half times the employee's regular rate "for each hour the employee works over 10 hours in any one day" for employees "employed in any cannery, drier or packing plant in this state," with a parallel provision for piece workers. OAR 839-020-0400 defines "cannery" as "an establishment for the canning or preservation of food products to prevent spoilage" and "drier" as "an establishment in which food products are preserved through the removal of moisture."

The daily overtime requirement under ORS 653.265 does not apply to canneries, driers, or packing plants that are "located on farms and primarily processing products produced on such farms." Employees of such on-farm facilities processing their own farm's output are exempt from daily overtime (though they remain subject to the general 40-hour weekly overtime rule under ORS 653.261). Employees of seafood processors and employees whose principal duties are administrative or who are not engaged in the direct processing of goods are also excluded.

Interaction with weekly overtime — "greater of" method

When an employee subject to daily overtime (under ORS 652.020 or ORS 653.265) also works more than 40 hours in the same workweek, Oregon law requires the employer to calculate overtime on both a daily basis and a weekly basis and pay the greater of the two amounts. ORS 653.265(3) and (4) codify this "greater of" rule explicitly for canneries: the employer must calculate daily overtime under subsection (2)(d) and weekly overtime under ORS 653.261(1) and pay whichever is greater. The same rule applies to manufacturing under ORS 652.020, as clarified by BOLI and enacted in 2017 legislation (HB 3458) that reversed an earlier BOLI interpretation requiring "pyramiding" (paying both daily and weekly overtime without offset).

Example: An employee at a food manufacturing plant works four 12-hour days (48 hours total) in a workweek. Daily overtime calculation: 4 days × 2 hours over 10 = 8 hours at 1.5×. Weekly overtime calculation: 48 − 40 = 8 hours at 1.5×. Both methods yield 8 overtime hours, so the employee is paid 40 hours straight time + 8 hours at 1.5×. If the same employee instead works five 10-hour days (50 hours total), daily overtime = 0 hours (no day exceeded 10), weekly overtime = 10 hours. The greater amount (10 hours at 1.5×) applies.

Exemptions and exceptions

ORS 652.020 and ORS 653.265 do not apply to employees represented by a labor union where a collective bargaining agreement establishes different limits on hours and overtime payment. Both statutes also exempt employees whose primary duties are administrative, supervisory, or involve making necessary repairs. OAR 839-001-0125 lists exempt categories under ORS 652.020, including supervisors, managers, foremen/women, and employees conducting maintenance on buildings, equipment, or machinery.

Employees of sawmills, planing mills, shingle mills, and logging camps remain exempt from ORS 652.020's daily overtime requirement under ORS 652.030 "until laws containing like provisions regarding working hours in such places of employment in the States of California, Washington and Idaho become effective in each of those states respectively." Because not all three surrounding states have enacted equivalent daily overtime laws for timber operations, this exemption remains in effect.

Maximum hours and consent requirements

In addition to the overtime premium, ORS 652.020 and ORS 653.265 impose maximum weekly hour limits. Manufacturing employees and cannery/drier/packing-plant employees generally may not work more than 55 hours in one workweek. An employer may permit an employee to work up to 60 hours if the employee requests or consents in writing to work more than 55 hours. Employers that process perishable products may qualify for an "undue hardship period exemption" allowing up to 84 hours per workweek for four workweeks and up to 80 hours per workweek for the remainder of the hardship period, subject to BOLI notice and employee written consent.

ORS 652.020 separately caps daily hours at 13 for manufacturing employees (10 regular + 3 overtime) except in emergencies (power outage, major equipment breakdown, severe weather, or similar events outside the employer's control). Employers that coerce employees into working beyond the 55-hour weekly limit face civil penalties of $2,000 to $3,000 per violation.

Relation to federal and general Oregon overtime law

The FLSA does not mandate daily overtime; it requires overtime only for hours over 40 in a workweek. Oregon's daily overtime requirements for manufacturing and canneries/driers/packing plants are therefore an overlay on top of the federal floor and Oregon's general weekly overtime rule (ORS 653.261 / OAR 839-020-0030). Employers in these industries must comply with all three rules—federal weekly, Oregon weekly, and Oregon daily—and pay the standard most favorable to the employee (which in practice means calculating both daily and weekly overtime and paying the greater amount).

Source: ORS 652.020 | ORS 653.265 | OAR 839-001-0100 | OAR 839-020-0400 | BOLI Manufacturing and Canneries Overtime

When an employee works in multiple Oregon locations during a single pay period — or when the employee's work takes place outside the employer's fixed business location — OAR 839-020-0011 prescribes rules for determining which of Oregon's three regional minimum wage rates applies. The regulation creates separate tests depending on whether the employee works primarily at a permanent fixed business location of the employer.

Employees who work more than 50% of hours at a permanent fixed business location

If an employee performs more than 50 percent of the employee's work in a pay period at the employer's permanent fixed business location in Oregon, the applicable minimum wage rate is determined based on the region in which that business is located. OAR 839-020-0011(1)(a). The employer pays the single rate for that region — Portland Metro, Standard, or Nonurban — for all hours worked during the pay period, regardless of whether some work occurs outside that region.

Special rule for delivery workers

OAR 839-020-0011(1)(b) provides a specific rule for employees who make deliveries as part of their job duties. If the employee starts and ends the employee's work at the employer's permanent fixed business location, the minimum wage rate required to be paid is the applicable rate for the region in which the business is located. This rule applies even when the delivery route crosses into other minimum-wage regions; the employer pays the rate for the home-base region for all hours worked.

Employees who work at locations other than the employer's permanent fixed business location

When an employee does not perform more than 50 percent of the employee's work in a pay period at the employer's permanent fixed business location in Oregon, the region in which the employee performs work is considered to be the employer's location for purposes of determining the applicable minimum wage rate. OAR 839-020-0011(2)(a). The employer is required to pay no less than this rate for each hour worked during the pay period.

Multiple regions in a single pay period — employer's choice of two methods

When an employee performs work in more than one region in a pay period, OAR 839-020-0011(2)(b) gives the employer two alternative compliance methods:

(A) Hour-by-hour regional rate method. The employer may pay the applicable minimum wage rate for each hour worked in each region in which the employee worked. Under this method, if an employee works 20 hours in a Portland Metro location (requiring $16.30/hour for July 1, 2025 – June 30, 2026) and 20 hours in a Standard-rate county (requiring $15.05/hour), the employer pays $16.30 for the Portland Metro hours and $15.05 for the Standard-rate hours.

(B) Highest-rate method. Alternatively, the employer may pay the highest minimum rate of wage required for any region in which the employee worked for all hours worked by the employee during the pay period. Using the same example, the employer may pay $16.30/hour (the Portland Metro rate) for all 40 hours worked that pay period, even though 20 of those hours were in a Standard-rate location. This method is simpler administratively and ensures compliance in all scenarios.

Record-keeping obligation

OAR 839-020-0011(2)(c) requires that if an employee performs work in more than one region in a pay period, the employer must maintain records of the locations in which the employee worked — unless the employer uses the highest-rate method under subsection (2)(b)(B) for all hours worked. An employer that consistently pays the highest regional rate for all hours avoids the need to track hour-by-hour location data, though it must still be able to identify which regions the employee worked in to determine the applicable highest rate.

Interaction with employer location definitions

The regulation cross-references ORS 653.025, which defines the three regions. Portland Metro is the area within the urban growth boundary of a metropolitan service district organized under ORS chapter 268 (primarily portions of Clackamas, Multnomah, and Washington Counties). Nonurban comprises 18 specified counties: Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler. Standard applies to all other areas. For employees whose work crosses regional boundaries, the employer must determine which region(s) the work was performed in and apply OAR 839-020-0011 accordingly.

Practical examples

A construction company based in Portland (Portland Metro region) sends a crew to work on a project in Bend (Deschutes County, Standard region) for two weeks. If the crew members perform more than 50% of their work during the pay period at the Portland fixed location (office, yard, shop), the Portland Metro rate applies to all hours. If the crew works the entire pay period in Bend and does not spend more than 50% of time at the Portland location, the employer must either (A) pay the Standard rate for the Bend hours, or (B) pay the Portland Metro rate (the higher of the two) for all hours worked.

A home-care agency dispatches workers from its office in Eugene (Lane County, Standard region) to client homes in Lane, Douglas (Nonurban), and Benton (Standard) counties. For workers who do not spend more than 50% of hours at the Eugene office, the agency must track which region each worker is in for each shift and either pay the applicable regional rate for each hour or pay the highest rate (Standard, when the worker visited both Standard and Nonurban locations, or the higher Portland Metro rate if any shifts occur there) for all hours that pay period.

Source: OAR 839-020-0011

Oregon imposes predictive scheduling (also called "fair workweek") obligations on certain large employers in retail, hospitality, and food services. The law, codified in ORS 653.412 through 653.485 and implemented through OAR Chapter 839, Division 26, requires covered employers to provide employees advance written notice of work schedules, pay additional compensation for last-minute schedule changes, and honor a 10-hour rest period between shifts. The law took effect July 1, 2018; the advance-notice period increased from 7 days to 14 days effective July 1, 2020.

Covered employers and employees

The law applies to employers with 500 or more employees worldwide (counting all employees across all locations, including integrated enterprises and chains) whose operations are classified under the 2012 North American Industry Classification System (NAICS) as retail trade, hospitality (hotels and motels), or food services establishments. ORS 653.422; OAR 839-026-0010. Whether an employer is covered depends on whether the employer's operations are classified under the applicable NAICS codes—a hospital that operates a retail store or food service on-site is not covered (because the hospital's primary NAICS code is health care), but a separate company that contracts to operate the retail or food service would be covered if it meets the 500-employee threshold and the applicable NAICS classification.

Covered employees are those employed at a covered establishment whose primary duties (the major part of the employee's time) relate to providing retail, hospitality, or food service. OAR 839-026-0010(3). Salaried employees who are exempt from minimum wage under Oregon or federal law, and workers supplied by worker leasing companies or businesses that provide services to or on behalf of an employer, are excluded. ORS 653.412(2)(b); OAR 839-026-0000(2).

Advance written work schedule — 14-day notice requirement

Covered employers must provide employees a written work schedule at least 14 calendar days in advance of the first day on the schedule. ORS 653.436(1). This requirement replaced an earlier 7-day notice period on July 1, 2020. The written schedule must include all regular work shifts and on-call shifts, must be posted in a conspicuous and accessible location (electronic posting is permitted if all covered employees have access to the electronic schedule at the workplace and can view the schedules of all employees at the same location), and must be provided in English and in the language the employer typically uses to communicate with employees. ORS 653.436(2); OAR 839-026-0030.

Changes made to the written schedule more than 14 days before the first day of the schedule do not trigger the schedule-change compensation requirements. OAR 839-026-0030(2). Changes made within the 14-day window generally require additional compensation unless an exception applies.

Good-faith estimate at hire

Employers must provide new employees, at the time of hire, a written good-faith estimate of the work schedule that includes the median number of hours the employee can expect to work in an average one-month period (as a single number, not a range), an explanation of any voluntary standby list, and a statement indicating whether the employee who is not on the voluntary standby list may expect to work on-call shifts. ORS 653.428; OAR 839-026-0020. The good-faith estimate must be in the language the employer typically uses to communicate with the employee.

Compensation for schedule changes — "predictability pay"

When an employer makes a change to an employee's written work schedule within the 14-day advance-notice period, the employer must pay the employee additional compensation (often called "predictability pay") on top of wages earned, unless an exception applies. ORS 653.455. The required compensation depends on the type of change:

• One hour of pay at the regular rate (in addition to wages earned) when the employer:
• Adds more than 30 minutes to the employee's work shift;
• Changes the date, start time, or end time of the shift without reducing the number of hours; or
• Schedules the employee for an additional work shift or on-call shift. ORS 653.455(1).

• One-half the regular rate per hour for each scheduled hour the employee does not work when the employer:
• Subtracts hours from the shift before or after the employee reports for duty;
• Changes the date, start time, or end time in a way that results in a loss of work hours;
• Cancels the employee's shift; or
• Does not ask the employee to perform work when scheduled for an on-call shift. ORS 653.455(2).

"Regular rate of pay" for predictability-pay purposes means the regular hourly rate the employee was to be paid for the pay period during which the compensation was earned, but in no case less than the applicable statutory minimum wage. OAR 839-026-0000(8). Employers must pay this additional compensation no later than the regular payday for the pay period in which it was earned.

Exceptions to schedule-change compensation

ORS 653.455(3) and OAR 839-026-0000 enumerate exceptions under which no predictability pay is owed, including:

• Changes requested or consented to in writing by the employee;
• Operations that must cease due to threats to employees or property, failure of public utilities or sewer system, or recommendation of a public official;
• Changes due to natural disasters or similar events (floods, earthquakes, wildfires, explosions, war, civil unrest);
• Changes when the employer's operations cannot begin or must cease due to conditions not known to the employer until within seven days (14 days after July 1, 2020) before the shift;
• Changes due to another employee's unexpected absence or unanticipated customer needs (provided the employer has first offered the additional hours to all eligible employees on the voluntary standby list);
• Discipline or separation of the employee for just cause;
• Changes due to an employee starting or returning from leave protected under Oregon Family Leave Act, Paid Leave Oregon, or federal law (added in 2024 amendments). ORS 653.455(3); OAR 839-026-0000(6), (7), (9), (10).

Right to rest between shifts — 10-hour rule and premium pay

Employers may not schedule an employee to work during the first 10 hours following the end of a previous work shift or on-call shift (whether the prior shift ended on one calendar day or spanned two calendar days) unless the employee requests or consents to work the shorter rest period. ORS 653.442(1); OAR 839-026-0040. An employee may consent on a situational or ongoing basis and may revoke consent at any time by following the employer's usual procedures for making schedule changes.

If an employee does work during the 10-hour rest period (whether by request, consent, or employer scheduling), the employer must pay the employee 1.5 times the employee's regular rate of pay for all hours worked during the rest period. ORS 653.442(2). This premium applies regardless of whether the employee requested or consented to the short turnaround. The 10-hour rest rule does not apply to split shifts that occur entirely within one calendar day. OAR 839-026-0040(5).

Voluntary standby list and right to additional hours

Employers may (but are not required to) maintain a voluntary standby list of employees who wish to be offered additional work hours or on-call shifts. ORS 653.432. Employees must request in writing to be added to the list, and the employer must notify them in writing that the list is voluntary, how to be removed, how the employer will notify them of additional hours, that they are not required to accept the hours, and that accepting hours from the standby list does not trigger predictability pay (because the employee opted in). When offering additional hours or filling a shift due to unanticipated customer needs or unexpected absences, the employer must first offer the hours to all eligible employees on the standby list before offering them to other employees or external candidates.

Employees also have the right, at the time of hire and at any time during employment, to request not to be scheduled during certain times or at certain locations, though the employer may require reasonable verification and is not obligated to grant the request. ORS 653.450. Employers may not retaliate against employees for making such requests or for exercising any right under the predictive scheduling law. ORS 653.470.

Enforcement and penalties

The Bureau of Labor and Industries (BOLI) enforces the predictive scheduling law. Employers who violate the law are subject to civil penalties of up to $1,000 per violation. OAR 839-026-0120; ORS 653.480. Employees may also bring a private right of action for violations. Employers must retain records demonstrating compliance with the law, including all work schedules, written good-faith estimates, standby lists, and documentation of exceptions, for three years. ORS 653.465; OAR 839-026-0050.

Source: ORS 653.412–653.485 | OAR Chapter 839, Division 26 | BOLI Predictive Scheduling page

Oregon requires every employer to establish and maintain a regular payday at which the employer pays all employees the wages due and owing to them. The payday may not extend beyond a period of 35 days from the time that the employees entered upon their work, or from the date of the last regular payday. ORS 652.120(1)–(2). Employers may establish and maintain paydays at more frequent intervals (weekly, biweekly, semimonthly, or monthly), but the interval between regular paydays cannot exceed 35 days. This 35-day maximum is both a ceiling on the initial payday (the first payment after hiring must occur within 35 days) and a ceiling on each subsequent pay interval.

ORS 652.120(4) permits an employer to enter into a written agreement with employees—prior to the rendering of any services and mutually satisfactory to both parties—to pay wages at a future date. Such an agreement does not override the 35-day maximum; it simply formalizes the pay schedule. The employer remains obligated to pay all wages due and owing on each regular payday.

Correction of underpayments on regular paydays

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 between the employer and the employee regarding the amount of the unpaid wages, ORS 652.120(5) imposes distinct deadlines for correction depending on the size of the underpayment:

• Underpayment less than 5% of gross wages. If the unpaid amount is less than five percent of the employee's gross wages due on the regular payday, the employer must pay the employee the unpaid amount no later than the next regular payday.

• Underpayment 5% or more of gross wages. If the unpaid amount is five percent or more of the employee's gross wages due on the regular payday, the employer must pay the employee the unpaid amount within three days after the employer has notice of the unpaid amount, excluding Saturdays, Sundays, and holidays.

These correction deadlines apply when the employer has notice of the underpayment—whether the employee notifies the employer or the employer discovers the error itself—and there is no dispute as to the amount. If the employer disputes the amount owed, the employer must still timely pay the undisputed portion and the dispute-resolution process continues as to the remainder.

Prohibition on withholding or delaying paychecks

Oregon law prohibits employers from withholding or delaying paychecks as a form of discipline or in exchange for the return of employer-owned items held by the employee. Wages must be paid on the regular payday regardless of whether the employee has returned company property, submitted time records, or met other employer expectations. The employer's remedy for unreturned property or other disputes is a separate legal or administrative process, not wage withholding. BOLI guidance emphasizes that an employer's failure to track hours worked or receive timesheets does not justify delaying payment; the employer must pay all employees on regular paydays and may take other disciplinary measures if an employee fails to meet time-reporting expectations.

Bond requirement for repeat violations

ORS 652.125 authorizes the Commissioner of the Bureau of Labor and Industries to require an employer to post a bond if the employer fails to make timely wage payments within five days of the regular payday on two or more occasions. The bond amount is set by the Commissioner and must be sufficient to secure payment of wages to employees. If the employer fails to provide the required bond within 10 days of the Commissioner's demand, the Commissioner may petition the circuit court for an order enjoining the employer from doing business in Oregon until the bond is posted. This provision protects employees from chronic wage-payment violations.

Penalties

Violation of ORS 652.120 is a Class A violation under ORS 652.990. Oregon defines violations by class in ORS 153.012 and 153.018; a Class A violation is an unclassified offense subject to a fine of up to $2,000 for an individual or up to $125,000 for a corporation. Each day's violation constitutes a separate offense, meaning that an employer who repeatedly fails to establish or maintain a regular payday or who extends paydays beyond 35 days can face cumulative penalties.

Employees who are not paid on time also have a private right of action. An employee may file a wage claim with BOLI under ORS 652.310 through 652.414, file a claim in small claims court if the amount is $10,000 or less, or consult an attorney about taking private legal action in circuit court. Oregon permits recovery of attorney fees in wage-claim lawsuits under ORS 652.200, making it financially feasible for employees to pursue unpaid wages even for smaller amounts. In addition, if an employer's failure to pay regular wages continues through termination of employment, the employee may be entitled to the penalty wages under ORS 652.150 (up to 30 days of wages at eight hours per day) if the employer willfully fails to pay wages due upon termination.

Relation to final paycheck timing

The 35-day regular-payday rule applies only to ongoing employment. When employment terminates, the stricter final-paycheck deadlines under ORS 652.140 supersede the regular-payday schedule. For employer-initiated terminations, final wages are due by the end of the first business day after termination; for employee quits with at least 48 hours' notice, wages are due immediately upon quitting; for quits without notice, wages are due within five days (excluding weekends and holidays) or at the next regular payday, whichever occurs first. See the "Final paycheck timing and penalties for late payment" section of this guide for the full final-pay rules and the substantial penalty regime that applies to late final paychecks.

Source: ORS 652.120 | ORS 652.125 | ORS 652.990 | BOLI Paychecks FAQ