Employer of Record for Oregon

In Oregon, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level.  As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race. Here are the key things you need to know about hiring in Oregon.

Do I Need an EIN or Payroll Tax Number To Employ in Oregon?

Yes, to employ workers in Oregon, you are required to obtain both a Federal Employer Identification Number (EIN) and an Oregon Business Identification Number (BIN). A BIN is assigned by the Oregon Department of Revenue and is used for reporting and paying Oregon payroll taxes, including state income tax withholding, unemployment insurance, and other employer-related taxes.

Working Hours in Oregon

Oregon generally follows the federal standard for working hours of 40 hours per week for full-time work, with overtime required beyond this threshold. However, some industries, such as manufacturing and canneries, must also pay daily overtime for hours exceeding 10 in a day.

What Is Considered Full-Time Employment in Oregon?

There is no state-mandated definition of "full-time," this range aligns with both state and federal standards. Full-time employment is generally considered to be working 30 to 40 hours per week. 

Probation Period in Oregon

There is no legally mandated probationary period for employees. However, it is common for employers to implement a probationary period at the start of employment, typically lasting 30, 60, or 90 days.

Oregon’s labor laws are among the most progressive in the U.S., with region-based minimum wages, robust worker protections, and industry-specific overtime requirements. Employers must stay attentive to annual wage adjustments, strict anti-discrimination rules, and compliance with the Paid Leave Oregon program.

Minimum Wage in Oregon

Oregon's minimum wage rates are structured based on geographic regions. As of July 1, 2025 the minimum wages are:

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

These wages adjust annually every July 1, based on the Consumer Price Index. Employers must apply the correct rate based on work location.

Read our Oregon average salary guide for me.

Oregon Anti-Discrimination Laws

Employees in Oregon are protected from workplace discrimination on the basis of:

• Race, color, or national origin
• Religion
• Sex, pregnancy, sexual orientation, and gender identity
• Age (18 and older)
• Physical or mental disability
• Genetic information

These protections apply broadly, covering most employers, and are enforced by the Oregon Bureau of Labor and Industries (BOLI).

Overtime in Oregon

Oregon has stricter overtime laws than many states. Employees must receive overtime pay at 1.5 times their regular rate for:

• Hours worked over 40 in a week.
• Hours worked over 10 in a day in certain industries, such as manufacturing, logging, and canneries.

Employees may be exempt from overtime if they:

• Earn more than the federal exemption threshold ($43,888 in 2025).
• Perform duties in executive, administrative, or professional roles.
• Work in licensed professions such as law, accounting, engineering, or architecture.

Payroll taxes in Oregon combine federal withholdings, state unemployment contributions, and the state’s Paid Leave Oregon program. Employers must manage these accurately to avoid penalties.

Payroll Cycle in Oregon

Oregon does not mandate a pay frequency, but most employers use biweekly or semi-monthly cycles. Employers must maintain consistency and ensure wages are paid promptly.

Types of Payroll Taxes in Oregon

Employers in Oregon are responsible for:

• Federal Income Tax: Withheld based on IRS Form W-4.
• Social Security (6.2%): Applied to wages up to $176,100 in 2025.
• Medicare (1.45%): Applied to all wages, with an additional 0.9% for wages above $200,000.
• Oregon Unemployment Insurance (UI): 2.4% on the first $54,300 of wages for new employers, with variable rates for experienced employers.
• Paid Leave Oregon contributions: 1% of wages up to $176,100, split 60% employee / 40% employer.

How to Comply with Oregon Payroll Taxes

Complying with Oregon payroll taxes is essential for employers, as non-compliance can result in penalties and back payments. Employers must calculate, withhold, and remit both federal and state payroll taxes, and submit timely filings.

Here’s how compliance works in practice:

• Withhold Federal and State Contributions: Employers must withhold federal income tax, Social Security, Medicare, and the employee portion of Paid Leave Oregon contributions.
• Pay Employer Contributions: Employers must contribute their share of Paid Leave Oregon and unemployment insurance taxes.
• File Quarterly and Annual Reports: IRS Form 941 must be filed quarterly, FUTA on Form 940 annually, and Oregon wage reports quarterly.
• Deposit Payroll Taxes on Time: Employers must remit funds through EFTPS (federal) and the Oregon payroll system (state) according to required schedules.
• Maintain Accurate Payroll Records: Employers must keep detailed records of wages, hours, and contributions for at least four years.

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Oregon. Understanding the tax obligations for both employers and employees is crucial when operating in Oregon's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Oregon. Note that employees may be liable for additional local taxes in certain cities and jurisdictions.

Employer Tax Contributions

Employee Payroll Tax Contributions

Tax Due Dates in Oregon

All contributions listed above align with the quarterly Form OQ deadlines.

• Quarterly Filings: April 30, July 31, October 31, January 31.
• Annual FUTA Filing (Form 940): January 31.‍
• State UI and PFL Contributions: Filed quarterly with the Oregon Employment Department.

Pension in Oregon

OregonSaves, launched in 2017, is a state retirement program for private-sector workers without employer plans. Employees are auto-enrolled at 5% (adjustable or opt-out), with post-tax contributions and tax-free withdrawals. Accounts are portable, staying with individuals across jobs. Employers may offer 401(k) plans or comparable retirement savings programs to remain competitive.

In Oregon, employers are required to provide certain benefits to employees, ensuring compliance with state and federal laws.

As part of our global employment services, Playroll can create a globally compliant and competitive compensation package that can help you attract and retain top talent in the US.

Employee Benefits For Oregon

Competitive benefits are essential for attracting and retaining top talent in Oregon. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Oregon packages include:

• Pension or 401(K)
• Vision Insurance
• Life Insurance
• Medical Insurance
• Dental Insurance
• Health Savings Plan (HSA)
• Flexible Spending Account (FSA)

Are Employers Required To Provide Health Insurance in Oregon?

• Employers with fewer than 50 full-time equivalent employees are not mandated to provide health insurance but may choose to offer it.

• Employers with 50 or more full-time equivalent employees are required under the Affordable Care Act to provide health insurance or face potential penalties.

Do Part-Time Employees Get Benefits in Oregon?

Part-time employees may be eligible for certain benefits, though eligibility and specific offerings depend on the employer's policies and state requirements. 

• Paid sick leave
• Family and Medical Leave (Paid Leave Oregon)
• Workers’ Compensation
• Unemployment Insurance
• Retirement Savings 

Are Employers Required To Offer 401k in Oregon?

Employers in Oregon are not required to offer a 401(k) plan specifically. However, employers who do not offer a retirement plan, such as a 401(k), are required to facilitate the OregonSaves program, a state-sponsored retirement savings plan.

Oregon provides some of the most employee-friendly leave protections in the country. Employers must comply with both federal FMLA and the state’s Paid Leave Oregon program.

Is Vacation Leave Mandatory in Oregon?

Vacation leave is not mandatory in Oregon. Employers are not required by state law to provide paid or unpaid vacation time to employees.

Mandatory Leave Policies in Oregon

Below are the mandatory leave entitlements for full-time employees in Oregon.

Paid Time Off in Oregon

In Oregon, there is no state law requiring employers to provide paid vacation or general Paid Time Off (PTO). However, certain types of leave, such as sick leave and family leave, are mandatory.

Maternity Leave In Oregon

In Oregon, maternity leave is covered under both the Oregon Family Leave Act (OFLA) and the Paid Leave Oregon program, providing eligible employees with unpaid and paid leave options, respectively.

Oregon Family Leave Act (OFLA):

• Applies to employers with 25 or more employees. Employees must have worked at least 180 days and 25 hours per week before taking leave. OFLA allows leave for pregnancy-related disability before the birth and bonding time after the birth or adoption of a child.
• Provides up to 12 weeks of unpaid leave per year for various family and medical reasons, including maternity leave.

Paid Leave Oregon:

• Paid Leave Oregon offers paid family, medical, and safe leave for eligible employees.
• Employees qualify if they’ve earned at least $1,000 in the previous year. 
• Up to 12 weeks of paid leave, with an additional 2 weeks available for pregnancy-related medical issues if needed.

Federal Family and Medical Leave Act (FMLA):

• Covers employers with 50 or more employees.
• Employees must have worked at least 1,250 hours in the past year to qualify.
• Provides up to 12 weeks of unpaid leave for maternity and other family or medical needs.

Paternity Leave In Oregon

In Oregon, paternity leave is covered under the Oregon Family Leave Act (OFLA) and the Paid Leave Oregon program, giving new fathers the opportunity to take time off to bond with a newborn or adopted child.

• New fathers can use OFLA leave within the first 12 months after the child’s birth or adoption.
• Fathers can use Paid leave Oregon for bonding time with a newborn, newly adopted, or foster child within the first year.

Federal Family and Medical Leave Act (FMLA)

Applies to employers with 50 or more employees. Employees must have worked at least 1,250 hours over the past 12 months to qualify. Up to 12 weeks of unpaid leave per year, including for bonding with a new child.

Sick Leave In Oregon

In Oregon, sick leave is mandatory for most employees, with specific requirements based on employer size. 

• Employers with 10 or more employees (6 or more in Portland) must provide paid sick leave.
• Employers with fewer than 10 employees (fewer than 6 in Portland) must still provide sick leave but are not required to pay for it.

Employees accrue 1 hour of sick leave for every 30 hours worked. Maximum 40 hours a year.

Military Leave in Oregon

In Oregon, military leave is protected by both state and federal laws, ensuring that employees who serve in the military or National Guard can take time off without risking their jobs.

Jury Duty in Oregon

Employers are required by law to provide leave for employees summoned to serve on a jury. Oregon law prohibits employers from terminating, disciplining, or retaliating against employees for taking time off to serve on a jury. Employers are not obligated to pay employees during jury duty leave, though some may choose to do so as part of their company policy.

Parental Leave In Oregon

In Oregon, parental leave is covered under both the Oregon Family Leave Act (OFLA) and Paid Leave Oregon, giving parents job-protected leave to care for and bond with a new child. 

When it comes to terminating employment in Oregon, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process in Oregon

Oregon is an at-will employment state, meaning that employers can terminate employees at any time, for any lawful reason, or for no reason at all, unless there’s a contract stating otherwise. Termination cannot be based on illegal reasons, such as discrimination or retaliation, or breach of any employment contract.

Notice Period in Oregon

Oregon does not require employers to provide advance notice before terminating an employee. However, some employers may offer notice as part of their company policy or contracts. For large-scale layoffs (50 or more employees in a 30-day period), the federal WARN Act may apply, requiring 60 days of advance notice for mass layoffs and plant closures.

Severance in Oregon

Oregon does not mandate severance pay for terminated employees. It is typically offered at the discretion of the employer.