The Oregon Labor Law Guide

Oregon runs a three-tiered minimum wage based on where the employee actually performs the work. Rates adjust every July 1st for inflation.

Current tiered rates, active through June 30, 2026:

• Portland Metro Area: $16.30 per hour (locations within the Metro Urban Growth Boundary, including parts of Clackamas, Multnomah, and Washington counties).
• Standard Counties: $15.05 per hour (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 outside the Urban Growth Boundary).
• Non-Urban Counties: $14.05 per hour (Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties).

Oregon is one of the strictest states on tipped pay. It completely bans the sub-minimum wage and the "tip credit."

The tip credit ban

• Employers cannot count an employee's tips toward their minimum wage obligation.
• All tipped employees (waitstaff, bartenders, bellhops, and the like) must be paid the full standard minimum wage for their region (Portland Metro, Standard, or Non-Urban) directly from the employer, no matter how much they earn in tips.

Current tipped rates (active through June 30, 2026)

• Portland Metro Area: $16.30 per hour plus tips.
• Standard Counties: $15.05 per hour plus tips.
• Non-Urban Counties: $14.05 per hour plus tips.

Oregon generally follows the standard 40-hour workweek rule. The state does enforce much stricter daily overtime and maximum-hour caps for manufacturing, plus newly phased-in thresholds for agricultural workers.

Standard employees (the 40-hour rule)

• Most non-exempt employees must be paid 1.5 times their regular rate for all hours worked over 40 in a single 7-day workweek.
• No daily overtime: for standard industries (retail, hospitality, office, and so on), Oregon does not require daily overtime. An employee can work more than 8 or 10 hours in a day without triggering overtime, as long as total weekly hours stay at or under 40.

Manufacturing and canneries (the 10-hour rule)

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

• Daily overtime: 1.5x the regular rate for any hours worked over 10 in a single day.
• The "greater of" rule: if a manufacturing employee triggers both daily and weekly overtime in the same week, the employer calculates both amounts and pays whichever total is greater.
• Maximum hour caps: manufacturing employees cannot legally work more than 13 hours in a 24-hour period, nor 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, farm and agricultural workers must be paid overtime for any hours worked over 48 in a workweek during the 2025 and 2026 calendar years. This threshold permanently drops to 40 hours on January 1, 2027.

Oregon's break laws are specific about exactly when a break has to be taken, based on the length of the scheduled shift.

Mandatory unpaid meal periods

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

• Shifts under 6 hours: a meal period is 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.

Meal timing rules

• 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.

Under certain strict conditions, tipped employees may voluntarily sign a BOLI-approved waiver to skip their unpaid meal break, provided they get an opportunity to eat while continuing to work and are paid for that time.

Mandatory paid rest breaks

Employers must provide uninterrupted, paid rest breaks based on hours worked, given roughly in the middle of each 4-hour work segment.

• Adult employees (18 and older): a paid 10-minute rest break for every 4 hours worked, or major portion thereof. BOLI defines a "major portion" as any segment lasting at least 2 hours and 1 minute.
• Minor employees (under 18): a longer paid 15-minute rest break for every 4 hours worked, or major portion thereof.

Oregon has some of the most employee-friendly leave laws in the country. Holidays and vacation are mostly up to the employer, but the state mandates two 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 offer paid vacation, you must have a clear, written policy. Under BOLI rules, when an employee resigns or is terminated, you must pay out all accrued, unused vacation in their final paycheck unless your written policy explicitly states that unused time is forfeited on separation.

Sick time

• Accrual and frontloading: all employees earn 1 hour of protected sick time for every 30 hours worked. Employers can instead frontload 40 hours at the start of the year. Employees can begin using this time after 90 days of employment.
• Paid sick time is required if an employer has 10 or more employees anywhere in the state.
• The Portland exception: if the employer keeps any location in Portland, the threshold drops, and they must provide paid sick time with 6 or more employees statewide.
• Unpaid sick time: employers under these size thresholds must still provide 40 hours of unpaid, job-protected sick time.

Paid leave (mandatory)

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

The 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 payroll to deduct the 60% employee contribution.

Holidays

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

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

The annual employment certificate (mandatory for employers)

Unlike states where the youth gets a work permit, Oregon certifies the employer. Before an employer can legally hire anyone under 18, they must apply for and receive an Annual Employment Certificate from BOLI. It 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), which is 5 minutes longer than the adult requirement.
• Unpaid meal breaks: minors must receive a 30-minute unpaid, uninterrupted meal break for any shift of 6 hours or longer.
• 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 (for example, because the store is slow), the employer must provide "adequate work" pay. They are legally required 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 ages 14 and 15

As a general rule, they cannot work during standard school hours.

• When school is in session: max 3 hours on school days; max 8 hours on non-school days (such as weekends); max 18 hours per week; may only work between 7:00 AM and 7:00 PM.
• When school is not in session (summer): max 8 hours per day and 40 hours per week; may work between 7:00 AM and 9:00 PM, from June 1st through Labor Day.

Scheduling limits for minors ages 16 and 17

• Working hours: 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 capped at a maximum of 44 hours per week. Employers cannot schedule them for more unless they apply for and receive a Special Emergency Overtime Permit from BOLI.

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

Who is covered

The law applies to employers in retail, hospitality, or food service that employ 500 or more employees worldwide.

Advance notice and good faith estimates

• 14-day notice: employers must provide a written, posted work schedule at least 14 calendar days in advance.
• Good faith estimate: at hiring, employers must give new employees a written estimate of the median hours they can expect 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, they must pay "predictability pay" on top of regular wages earned:

• Added hours or changed shift times with no loss of hours: 1 extra hour of pay at the employee's regular rate.
• Subtracted hours or canceled shifts: 50% (half-time) of the regular rate for every scheduled hour that was canceled.

The right to rest (the "clopening" ban)

• Employees are 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 the previous one ended, the employer must pay 1.5 times the regular rate for any hours worked within that 10-hour window.

The voluntary standby list exception

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