Introduction to employment laws in Oregon
Overview
Oregon has a robust set of federal and state regulations aimed at protecting workers’ rights and ensuring fair labor standards. The applicable federal and state labor laws may seem complex, but you must achieve complete compliance and avoid legal repercussions when hiring in Oregon.
Employing in Oregon: Key employment laws and practices
Standard work hours
In Oregon, the standard work week is 40 hours within seven consecutive days.
Full-time employees typically work 30 to 40 hours per week. Although there is no legal definition for full-time employment in Oregon, these workers are usually entitled to benefits such as healthcare coverage and paid time off.
Part-time and contractual employees work fewer hours compared to their full-time counterparts. The specific hours and benefits may vary based on the employment contract and the nature of the job.
Self-employed professionals have the flexibility to set their own working hours. However, they should be aware of their obligations under Oregon employment laws, such as paying self-employment taxes.
Minimum wage and overtime
The minimum hourly wage in Oregon is dependent on the employee’s work location. For instance, in Portland Metro, the minimum wage is $15.45 per hour, while in non-urban counties it is $13.20 per hour. The standard minimum wage is set at $14.20 per hour. It’s also important to note that these rates are expected to increase in 2024.
Overtime pay is governed by the Fair Labor Standards Act (FLSA). Employees who work more than 40 hours in a week are entitled to an overtime pay rate of 1.5 times their regular rate.
Special overtime rules apply to specific sectors, including government agencies, public works projects, hospitals, canneries, manufacturing establishments, and some agricultural employers.
Insurance and benefits
Businesses employing workers in Oregon may be required to provide certain insurance and benefits. Federal laws like the Affordable Care Act (ACA) dictate health insurance provisions for businesses with 50 or more full-time employees.
Additionally, employers must offer retirement benefits such as 401(k) plans if stipulated in the employment contract. The specific rates for these insurance contributions depend on factors like the employer’s payroll and the nature of work.
Benefit type | Description |
Healthcare coverage | Required for businesses with 50+ full-time employees under the ACA. |
Retirement plans (401k) | Must be offered if stipulated in the employment contract |
Unemployment insurance | Mandatory for all employers, rates depend on the company’s payroll with a range of 0.9% to 5.4% |
Workers’ compensation | Mandatory: all employers must carry coverage |
Multiplier makes it easy to manage benefits for Oregon employees.
Meal and rest periods
Under Oregon employment laws, employers are mandated to provide specific break periods for their employees. This includes both rest breaks and meal periods.
According to the Oregon Bureau of Labor and Industries (BOLI), employees are entitled to a 10-minute paid rest break for every four hours worked or major fraction thereof. These rest breaks should ideally be offered in the middle of the work period.
In terms of meal periods, Oregon HR compliance requires that employees who work six or more hours in a day be provided with a 30-minute unpaid meal period. This should generally commence no later than the end of the fifth hour of work.
However, in some cases where the nature of the work allows employees to consume a meal while working and the employer permits it, this meal period can be considered ‘on-duty’ and may be waived.
Anti-discrimination laws
Adhering to strict anti-discrimination laws is a key aspect of maintaining HR compliance in Oregon. Both state and federal laws prohibit discrimination in the workplace based on specific protected classes such as race, color, religion, sex, national origin, disability, or age. In addition to these federal guidelines, Oregon law also protects against discrimination based on sexual orientation and gender identity.
The Oregon Equality Act, for instance, prohibits employment discrimination based on an individual’s sexual orientation or gender identity. It is important for employers to understand these nuances in Oregon law and ensure they are not engaging in any discriminatory practices that might contravene state or federal statutes.
Employers should also be aware of the Americans with Disabilities Act (ADA), which prohibits discrimination against individuals with disabilities and requires employers to provide reasonable accommodations for these individuals unless doing so causes undue hardship to the business.
Leave policies
Oregon’s leave policies encompass several types of leave, including vacation time, sick leave, parental leave, and bereavement leave. Although employers are not legally required to provide paid vacation leave, many do so as part of their benefits package.
Oregon law mandates employers to provide up to 40 hours of paid sick leave per year, with employees earning one hour of sick leave for every 30 hours worked. This applies to employers with 10 or more employees.
Parental leave in Oregon is governed by both the federal Family and Medical Leave Act (FMLA) and the Oregon Family Leave Act (OFLA). Eligible employees are entitled to up to 12 weeks of unpaid leave for the birth or adoption of a child, or to care for a newborn within one year of birth.
Oregon employers also need to be aware of bereavement leave provisions. The OFLA entitles eligible employees to take up to two weeks of unpaid leave following the death of a family member.
Leave type | Duration | Paid/Unpaid |
Vacation | Not stipulated by law | Typically paid |
Sick leave | Up to 40 hours per year | Paid |
Parental leave | Up to 12 weeks per year | Unpaid |
Bereavement leave | Up to 2 weeks per incident | Unpaid |
Termination laws
Oregon employment laws follow the doctrine of ‘at-will’ employment, which means that either employer or employee can terminate the employment relationship at any time and for any reason, as long as it’s not illegal or discriminatory.
In case of mass layoffs or plant closures, the federal Worker Adjustment and Retraining Notification (WARN) Act may apply, requiring employers to provide 60 days’ notice to affected employees.
Oregon law does not mandate severance pay unless it is stipulated in the employee’s contract or the company’s policy. If provided, severance pay often corresponds to the length of service, typically one week’s pay for each year of employment.
Easily onboard employees in Oregon?
Safety and health
Oregon’s state-specific safety and health laws aim to ensure the safety and well-being of workers. The Oregon Occupational Safety and Health Division (Oregon OSHA) enforces these regulations, which cover a broad range of industries. These include provisions like maintaining a safe workspace, providing training on safety protocols, and ensuring access to protective equipment. Employers are also required to report serious accidents or fatalities within a specified timeframe.
Taxes in Oregon
Both employers and employees in Oregon are subject to various taxes including federal taxes such as Social Security and Medicare as well as state taxes including Unemployment Insurance Tax.
Employer contributions range from 0.9% to 5.4% for Unemployment Insurance (state) and 6.2% for Social Security (federal), while employee contributions include 6.2% for Social Security and 1.45% for Medicare.
Oregon’s income tax is progressive, ranging from 4.75% to 9.9% for state income tax and from 10% to 37% for federal tax, depending on income level.
Type of Tax | Employer Contribution | Employee Contribution |
Federal income Tax | N/A | Varies |
State income tax | N/A | 4.75-9.9% |
Social Security | 6.2% | 6.2% |
Medicare | 1.45% | 1.45% |
Unemployment insurance | 1.2-5.4% | N/A |
Managing Oregon employees with an Employer of Record (EOR)
When employing people in Oregon, understanding and complying with the state’s complex employment laws can be daunting. Navigating the various regulations set by both state and federal authorities requires expertise, time, and resources.
This is where Multiplier steps in, providing an integrated Employer of Record (EOR) solution that helps businesses employ full-time workers legally and compliantly without setting up local entities.
With our Global Payroll Platform, you can pay your team members while managing local taxes, contributions, and withholdings. Our all-in-one solution streamlines HR management, from hiring to onboarding to paying international employees and contractors—all from a single interface.
To see how we can streamline your HR and compliance processes, book a demo today.
FAQs
Full-time employment in Oregon is generally considered to be between 30 and 40 hours per week. However, this definition isn’t codified into law.
Yes. The current minimum wage for private sector employees in Oregon varies based on location. In general, it’s $14.20 per hour but it’s slightly higher in Portland ($15.45) and lower in non-urban counties ($13.20). It’s projected to increase in July 2024.
According to the federal Fair Labor Standards Act (FLSA), non-exempt employees are entitled to receive 1.5x their regular pay rate if they work over 40 hours a week. Exemptions usually apply to employees who earn over a specific threshold, perform executive or managerial duties, or work in certified or licensed professions.
Employers contribute between 1.2% – 5.4% towards Unemployment Insurance (state), 6.20% towards FICA Social Security (federal), and 1.45% towards FICA Medicare (federal). On the other hand, employees contribute 6.20% towards FICA Social Security (federal), 1.45% towards FICA Medicare (federal), and additional tax on earnings over $200,000 for high-income earners.
According to Oregon employment laws, the maximum working week is set at 40 hours with no more than eight hours per day. If an employee works more than 40 hours in a single week, they are entitled to overtime pay of 1.5 times their regular salary rate as per the Fair Labor Standards Act (FLSA).
