Oregon Labor Law Guide 2026: Minimum Wage, Overtime, Breaks, and Leave
Oregon labor laws for employers in 2026: the three-tier minimum wage from $14.55 to $16.80 with no tip credit, mandatory 10-minute rest and 30-minute meal breaks, protected sick time, Paid Leave Oregon, manufacturing daily overtime, predictive scheduling for large retail and hospitality employers, and next-business-day final pay on discharge.
Oregon has one of the most detailed wage and hour codes in the West, and the Bureau of Labor and Industries (BOLI) enforces it actively. Employers deal with a regional minimum wage that adjusts every July 1, mandatory meal and rest breaks with strict timing, protected sick time, a state paid leave insurance program, daily overtime in manufacturing, and a predictive scheduling law for large retail, hospitality, and food service employers. The rules below reflect BOLI's current guidance as of September 2026.
- Oregon's minimum wage has three tiers, adjusted each July 1: $15.55 standard, $16.80 inside the Portland urban growth boundary, and $14.55 in non-urban counties, with no tip credit anywhere in the state
- Every employee gets a paid 10-minute rest break for each four-hour segment and an unpaid 30-minute meal period for each six-to-eight-hour work period, with specific timing rules
- Sick time accrues at one hour per 30 worked and is paid at employers with 10 or more employees statewide (6 or more with a Portland location)
- Paid Leave Oregon provides up to 12 weeks of paid family, medical, or safe leave, funded by a 1 percent contribution split 60 percent employee and 40 percent employer
- A discharged employee must be paid by the end of the next business day; late final pay accrues penalty wages of up to 30 days
Minimum Wage in Oregon
Oregon sets its minimum wage by region. From July 1, 2026 the standard rate is $15.55, the Portland metro rate (inside the urban growth boundary) is $16.80, and the non-urban county rate is $14.55. BOLI announces the next year's figures by April 30 based on the Consumer Price Index, and the new rates take effect July 1. Oregon does not allow a tip credit, so servers and other tipped staff receive the full regional minimum wage before tips.
Which rate applies depends on where the employee works, and an employee who splits time across regions is generally paid the rate for the region where they work more than half the week. For the county lists, the rate history, and the youth and training rules, see the Oregon minimum wage guide and the national minimum wage by state comparison.
Overtime Rules
Oregon requires time and a half after 40 hours in a workweek for non-exempt employees. There is no general daily overtime rule, with one important exception: mills, factories, and manufacturing establishments. Under ORS 652.020, covered manufacturing employees who work more than 10 hours in a day must be paid daily overtime at one and a half times the regular rate. BOLI adds that manufacturing employers "may not require or permit an employee to work more than 55 hours in a workweek," although an employee may work up to 60 hours "if the employee requests or consents in writing." Manufacturing workers must also get at least 10 hours of rest after a shift of 8 or more hours and may not work more than 13 hours in a 24-hour period.
When both daily and weekly overtime apply in the same week, BOLI's rule is to calculate both and "pay the greater amount of daily or weekly overtime earned by an employee." Administrative staff, employees under a collective bargaining agreement with its own overtime terms, and emergency repair work are exempt from the daily rule.
Worked example at the standard minimum wage: an employee paid $15.55 works 45 hours in a non-manufacturing job. Regular pay is 40 hours at $15.55, or $622.00, and overtime is 5 hours at $23.33, or $116.63, for $738.63 gross. The overtime calculator handles daily and weekly rules, and the overtime pay laws in the US guide compares Oregon with California and Washington.
Oregon follows the federal $684 per week salary threshold for the white-collar exemptions, and BOLI places the burden of proving exempt status on the employer.
Meal and Rest Breaks
Oregon's break rules are specific about timing. BOLI states that employees are entitled to "two 10 minute paid rest breaks" in an 8-hour shift, one for each "segment of four hours or major part thereof," taken "approximately in the middle of each four hour" segment. A "30 minute unpaid meal break" is required for shifts of 6 hours or more, and additional meal periods for shifts of 14 or more hours. On a 6-to-7-hour shift the meal must be taken "after the second hour worked and prior to the commencement of the fifth hour worked," and on a shift over 7 hours "after the third hour worked and prior to the commencement of the sixth hour worked."
| Break type | Requirement | Applies to |
|---|---|---|
| Rest break | 10 minutes, paid, for each 4-hour segment or major part, near the middle of the segment | All employees; minors get 15 minutes |
| Meal period | 30 minutes, unpaid and duty-free, for each 6-to-8-hour work period; paid if the employee works during it | All employees |
| Undue hardship exception | Employer may give a shorter paid meal period where a full break causes significant difficulty or expense, with written notice to employees | Limited cases |
| Solo retail or service workers | No meal period required for adults working alone for under 5 hours in a 16-hour period with restroom access | Adults 18+ only |
| Tipped food servers | May voluntarily waive the meal period in writing if 18 or older, with a posted notice, and still receive breaks on shifts of 8 or more hours | Adults 18+ |
If an employee performs any work during a meal period, "the employer must pay the employee for the whole meal period." Hospital employees have a specific complaint path with a $200 penalty per missed period. The break time calculator shows the required breaks for any shift, and the rest and meal break laws by state guide covers the details.
Paid Sick Leave and Other Leave
Oregon Sick Time. BOLI states that employees accrue "at least 1 hour of protected sick time for every 30 hours you work." The time is paid at employers with 10 or more employees statewide, or 6 or more if the employer has a Portland location, and unpaid but job-protected at smaller employers. Employers may cap use at 40 hours a year, carryover at 40 hours, and total accrual at 80 hours, or front-load 40 hours instead of accruing. Employees can use sick time after 90 days. Permitted uses include illness, injury, mental health, medical care, bonding with a new child, bereavement, domestic violence and harassment, public health emergencies, and, since January 1, 2026, blood donation through an accredited voluntary program. Employers must report the balance regularly, typically on pay stubs each quarter.
Paid Leave Oregon. The state program provides up to 12 weeks of paid family, medical, or safe leave a year, with 2 additional weeks for pregnancy-related conditions. It is funded by a contribution of 1 percent of wages, split 60 percent employee and 40 percent employer, on wages up to $184,500 in 2026. Employers with fewer than 25 employees do not owe the employer share but must still withhold and remit the employee share. Since January 1, 2026, BOLI rather than the Employment Department enforces the program's job protection and anti-retaliation provisions.
| Leave type | Oregon rule |
|---|---|
| Sick time | 1 hour per 30 hours worked; paid at 10+ employees (6+ with a Portland site); 40-hour annual use cap allowed |
| Paid Leave Oregon | Up to 12 weeks paid (14 with pregnancy weeks) per year; 1 percent contribution, 60/40 split |
| Oregon Family Leave Act | Unpaid, job-protected leave at employers with 25 or more employees for reasons not covered by Paid Leave Oregon |
| Federal FMLA | 12 weeks unpaid at employers with 50 or more employees |
| Jury duty | Job-protected; unpaid unless policy provides |
| Bereavement | Up to 2 weeks per family member under OFLA, using sick time or unpaid |
| Voting | Oregon votes by mail, so no statutory voting leave |
| Military | Federal USERRA plus state protections |
See paid sick leave laws in the US and jury duty laws in the US for comparisons.
PTO Payout and Final Paychecks
Oregon's final pay deadlines depend on who ended the employment. BOLI states: "If you are let go or fired, your final paycheck is due by the end of the next business day." An employee who quits with at least 48 hours' notice is paid on the last day of work (or the next business day if that is a weekend or holiday). An employee who quits with less than 48 hours' notice must be paid "within five business days or on the next regular payday, whichever comes first." Late final wages accrue penalty wages "at the same regular hourly rate, for eight hours per day," for up to 30 days.
Vacation and PTO payout follows the employer's written policy; Oregon does not require payout by statute, but an employer that promises it must pay it. Sick time does not have to be paid out. The PTO payout laws by state guide has the Oregon entry.
Regular paydays "may not be more than 35 days apart," and every payment must come with an itemized statement showing the amount and purpose of each deduction. A 2026 law also requires employers to give employees written explanations of pay and deduction codes.
Exempt vs Non-Exempt Employees
Oregon uses the federal $684 per week threshold and the federal duties tests, and BOLI interprets exemptions narrowly. Because the state has no daily overtime outside manufacturing, the classification question is mainly about weekly overtime and break entitlements, which apply to all non-exempt staff. Our exempt vs non-exempt employees guide and the FLSA exemption flowchart cover the tests.
Child Labor Rules
BOLI requires an annual employment certificate for any employer of minors: "All employers must have a certificate to employ minors under 18 years of age."
| Age group | Hours and time limits | Other rules |
|---|---|---|
| 14 and 15, school in session | Maximum 3 hours on a school day and 18 hours a week; 8 hours on a non-school day; only between 7 AM and 7 PM | No work during school hours |
| 14 and 15, school not in session | 8 hours a day and 40 hours a week; 7 AM to 9 PM from June 1 through Labor Day | |
| 16 and 17 | Any hours of the day, up to 44 hours a week | Hazardous occupation restrictions apply |
| All minors | Paid 15-minute rest break for each 4-hour segment; 30-minute meal period on shifts of 6 or more hours | Meal period cannot be waived for 14 and 15 year olds |
Federal hazardous occupation rules (power-driven machinery, roofing, meat processing, mining, explosives) apply on top. See child labor laws in the US.
Other Oregon Employment Rules
- Predictive scheduling. Retail, hospitality, and food service employers with 500 or more employees worldwide must give written schedules at least 14 calendar days in advance, pay one hour of predictability pay for added shifts or changes of more than 30 minutes, pay half the regular rate for hours cut from a posted schedule, and pay time and a half for shifts that start within 10 hours of the previous day's shift unless the employee consents. New hires get a written good-faith estimate of median monthly hours.
- Equal Pay Act. Oregon's law covers race, ethnicity, sexual orientation, and other protected classes, not just sex, and bars salary history questions.
- Ban the box. Criminal history questions must wait until an initial interview or conditional offer.
- Healthcare non-competes. Since June 2025, most non-competition agreements with licensed medical professionals are void.
- Age questions in hiring. Since late 2025, employers may not ask an applicant's age, date of birth, or school graduation dates before an interview or conditional offer.
- Construction wage liability. Since January 1, 2026, property owners and direct contractors can be jointly liable for unpaid wages of subcontractor employees on covered projects.
- Payroll taxes. Beyond Paid Leave Oregon, employers pay unemployment insurance on a wage base that rose to $56,700 in 2026, and the Portland metro area adds local income taxes for higher earners.
Hiring, Termination, and Record-Keeping
Oregon is an at-will state with exceptions for discrimination, retaliation, whistleblowing, and public policy. BOLI's Civil Rights Division enforces anti-discrimination law covering employers of any size, including protections for sexual orientation, gender identity, and lawful off-duty activity. Employers with 6 or more employees must have a written anti-harassment policy under the Oregon Workplace Fairness Act.
Keep time and pay records for at least 2 years under state law and 3 years for payroll under the FLSA, including rest and meal break records, sick time balances, and the minor employment certificate. Post the BOLI minimum wage, sick time, Paid Leave Oregon, and predictive scheduling notices where they apply. Because rest breaks must fall near the middle of each four-hour segment and meal periods in a fixed window, punch-level records matter; a time card calculator that shows breaks per shift and a written timekeeping policy make BOLI audits straightforward.
Frequently Asked Questions
Is Oregon an at-will state? Yes, with exceptions for discrimination, retaliation, whistleblowing, and public policy.
Does Oregon require lunch breaks? Yes. Employees get an unpaid 30-minute meal period for each six-to-eight-hour work period, taken within a specified window, plus a paid 10-minute rest break for each four-hour segment.
When is overtime paid in Oregon? After 40 hours in a workweek. In mills, factories, and manufacturing establishments, also after 10 hours in a day, with a 55-hour weekly cap unless the employee consents in writing to up to 60.
When is the final paycheck due in Oregon? By the end of the next business day on discharge. On quitting, the last day if the employee gave 48 hours' notice, otherwise within five business days or by the next payday, whichever is first.
Does Oregon have paid sick leave? Yes. Employees accrue one hour per 30 worked, paid at employers with 10 or more employees (6 or more with a Portland location), and Paid Leave Oregon adds up to 12 weeks of paid family and medical leave.
How many hours can a minor work in Oregon? Ages 14 and 15: 3 hours on a school day and 18 in a school week, or 8 a day and 40 a week when school is out. Ages 16 and 17: up to 44 hours a week. Every employer of minors needs an annual BOLI employment certificate.
Does Oregon allow a tip credit? No. Tipped employees receive the full regional minimum wage before tips.
Does Oregon pay out unused PTO? Only if the employer's written policy provides for it. Sick time is not paid out at separation.
Sources
- Oregon BOLI: Meals and breaks
- Oregon BOLI: Overtime in manufacturing and canneries
- Oregon BOLI: Sick time
- Oregon BOLI: Paychecks and final pay
- Oregon BOLI: Predictive scheduling
- Oregon BOLI: Minor workers
- US Department of Labor: State Minimum Wage Laws
Reviewed September 2026
Oregon adjusts its minimum wage every July 1 and passed several employment laws in 2025 and 2026. The Paid Leave Oregon contribution split and wage base, the Oregon Family Leave Act thresholds, the unemployment insurance wage base, the Workplace Fairness Act policy requirement, the healthcare non-compete ban, the age-inquiry restriction, the construction wage liability rule, the payroll code disclosure rule, and the record retention periods are stated from general knowledge and the prior version of this guide rather than a fetched BOLI page, and should be confirmed with BOLI or the Oregon Employment Department before you rely on them.
Breaks in the Right Window, Every Shift
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