Oregon HR Consulting & Employment Law for Small Businesses
Oregon has built one of the most comprehensive worker protection frameworks in the country, featuring Paid Leave Oregon, a tiered minimum wage, and one of the most restrictive pay equity laws in the nation.
Oregon employers contend with Paid Leave Oregon (up to 12 weeks of paid leave, launched 2023), the Oregon Equal Pay Act (no salary history inquiries, proactive pay equity analysis recommended), and a three-tiered minimum wage system based on geography. Oregon also strictly limits non-compete agreements to specific circumstances and short durations.
Note: This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a qualified employment attorney for advice specific to your situation.
Key Oregon Employment Laws
Paid Leave Oregon
Oregon's paid leave program provides eligible employees up to 12 weeks of paid leave (14 weeks for pregnancy complications) for qualifying family, medical, and safety events. Benefits replace up to 60-100% of wages depending on earnings. Employer and employee payroll contributions fund the program. Employers with fewer than 25 employees are exempt from the employer contribution.
Oregon Equal Pay Act
Oregon prohibits asking about salary history at any point in the hiring process. Employers must pay employees performing work of comparable character equally, regardless of protected class. Employers who conduct proactive pay equity analyses in good faith have an affirmative defense against equal pay claims for 3 years.
Oregon Non-Compete Law
Oregon significantly restricts non-competes. Agreements are void unless the employee earns at least $100,533/year, is exempt from overtime, and is engaged in administrative, executive, or professional work. The maximum enforceable duration is 12 months. Agreements must be provided 2 weeks before start of employment or a bona fide promotion.
Oregon Sick Leave
Oregon requires all employers to provide up to 40 hours of protected sick leave per year. Employers with 10 or more employees (or 6+ in Portland) must provide paid sick leave. Smaller employers provide unpaid sick leave. Sick time accrues at 1 hour per 30 hours worked.
Compliance Thresholds for Oregon Employers
1+ Employees: employees
- Oregon minimum wage applies (three tiers: Portland metro, urban, rural)
- Oregon Paid Leave contributions required (employee and employer shares)
- Oregon Equal Pay Act prohibits salary history inquiries
6+ Employees: employees
- Oregon Family Leave Act (OFLA) begins (12 weeks unpaid -- runs concurrently with federal FMLA and Paid Leave Oregon)
50+ Employees: employees
- Federal FMLA applies
- Oregon Sick Leave (up to 40 hours/year for all employees regardless of size)
- ACA employer mandate
Common Questions About Oregon Employment Law
What does Paid Leave Oregon provide?
Paid Leave Oregon provides eligible employees up to 12 weeks of paid leave per year for family bonding, serious health conditions, and domestic violence. Employees experiencing pregnancy complications may receive up to 14 weeks. Benefits replace 60-100% of wages depending on earnings relative to the state average.
Does Oregon prohibit salary history questions?
Yes. Oregon's Equal Pay Act prohibits employers from asking about an applicant's salary history at any point in the hiring process, including in applications. Employers may confirm prior salary after making an offer with the applicant's written consent.
How does Oregon's minimum wage work?
Oregon sets three minimum wage tiers: a higher rate for the Portland metro area, a standard rate for other urban counties, and a lower rate for rural areas. All three tiers increase annually on July 1. Employers must use the tier that applies to each employee's work location.
Are non-competes enforceable in Oregon?
Oregon non-competes are enforceable only for employees earning at least $100,533/year who are exempt salaried professionals. The maximum duration is 12 months. Agreements must be provided 2 weeks before the start date or bona fide promotion and must be followed up with a garden leave period to be fully enforceable.
Does Oregon have paid sick leave for all employers?
Yes. Oregon requires all employers to provide sick time protection. Employers with 10 or more employees (6 or more in Portland) must provide paid sick leave up to 40 hours/year. Smaller employers must provide unpaid sick leave. Sick time accrues at 1 hour per 30 hours worked.
Need HR support in Oregon?
TalentForge360 serves employers nationwide. Fractional HR from $1,199/month. Free consultation.