🇺🇸 OREGON STATE LAW – 2026 UPDATE

Oregon Remote Work Laws 2026

⚠️Informational only — not legal or tax advice.

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in Oregon

Oregon remote work laws and employment regulations guide

Table of Contents

Click any item below to jump to the relevant section

Overview

Oregon is generally considered to have strong worker protections compared to many other states. According to official state sources, Oregon has enacted comprehensive employment regulations that address minimum wage, paid sick leave, and various workplace protections.

General Characteristics (as of December 2025):

  • State minimum wage (2025-2026): Oregon operates a three-tiered system based on geographic location:
    • Portland Metro area: $16.30/hour (effective July 1, 2025 – June 30, 2026)
    • Standard counties: $15.05/hour (effective July 1, 2025 – June 30, 2026)
    • Non-urban counties: $14.05/hour (effective July 1, 2025 – June 30, 2026)
  • Paid sick leave: Generally required for employers meeting certain size thresholds
  • State income tax: Progressive tax system with rates ranging from 4.75% to 9.90%
  • Meal/rest breaks: Generally required by state law for non-exempt employees
  • Overtime rules: Follows federal FLSA standards with some additional state provisions
  • Workers’ compensation: Generally required for employers with one or more employees

Note: These are general starting points only. Specific applicability depends on many factors including employer size, industry, employee classification, and individual circumstances. Consult official sources and legal counsel for guidance on specific situations.

Sources:

Official State Agency Information

The Oregon Bureau of Labor and Industries (BOLI) administers and enforces most employment laws in Oregon, including wage and hour standards, civil rights protections, and workplace safety regulations.

Contact Information:

  • Website: https://www.oregon.gov/boli
  • General Phone: 971-245-3844
  • Employer Assistance: 971-361-8400
  • Email: boli_help@boli.oregon.gov
  • Address: 1800 SW 1st Ave., Suite 500, Portland, OR 97201
  • Hours: 8:00 AM – 5:00 PM, Monday-Friday
  • TTY Relay: 711
  • Languages: English, Spanish

Regional Offices:

  • Eugene Office: 1400 Executive Parkway, Suite 200, Eugene, OR 97401 | Phone: (541) 686-7623
  • Salem Office: 3865 Wolverine St. NE, Building E-1, Salem, OR 97305

Note: BOLI can provide official interpretations of state employment law. However, for legal advice on how laws apply to your specific situation, consult a licensed attorney.

Other Key State Agencies

Oregon Workers’ Compensation Division

Oregon Employment Department

Oregon Department of Revenue

Major State Employment Statutes

The following statutes are commonly referenced in Oregon employment matters. This is general information only and does not constitute legal interpretation.

1. Oregon Wage and Hour Laws

Statutory Citation: ORS Chapter 653 Official Source: https://www.oregonlegislature.gov/bills_laws/ors/ors653.html

General Provisions (as stated in statutes and regulations): According to Oregon law, the statutory framework generally addresses:

  • Minimum wage requirements based on geographic location
  • Overtime compensation standards
  • Meal and rest period requirements
  • Payment of wages timing and methods
  • Record-keeping obligations

Administrative Rules: OAR Chapter 839, Division 020 Source: https://secure.sos.state.or.us/oard/displayDivisionRules.action?selectedDivision=3588

Application to Remote Work: These provisions generally apply based on where work is physically performed in Oregon. Specific applicability depends on multiple factors including work location, employer location, and nature of employment relationship. Consult BOLI or legal counsel for guidance on specific situations.

2. Oregon Sick Time Law

Statutory Citation: ORS 653.601-653.661 Effective Date: January 1, 2016 (with subsequent amendments) Official Source: https://www.oregonlegislature.gov/bills_laws/ors/ors653.html

General Overview: According to BOLI guidance, this law generally requires employers meeting certain size thresholds to provide protected sick time to employees. The law establishes:

  • Accrual rates and usage provisions
  • Employer coverage requirements based on size and location
  • Permitted uses of sick time
  • Employee eligibility criteria
  • Notice and documentation requirements

Coverage typically depends on: Employer size, employer location (Portland vs. rest of state), and employee work hours.

Note: Actual coverage and obligations depend on specific circumstances. Employers should consult official BOLI guidance and legal counsel for compliance requirements.

Source: Oregon Bureau of Labor and Industries – Sick Time: https://www.oregon.gov/boli/workers/pages/sick-time.aspx

3. Oregon Civil Rights Laws

Statutory Citation: ORS Chapter 659A Official Source: https://www.oregonlegislature.gov/bills_laws/ors/ors659a.html

General Framework: Oregon law generally prohibits employment discrimination based on protected characteristics including race, color, religion, sex, sexual orientation, national origin, marital status, age, disability, and other categories specified in statute.

Application: These protections typically apply to employers with one or more employees in Oregon. Specific requirements and protections vary based on employer size and other factors.

For complaints or questions: Contact BOLI Civil Rights Division at 971-673-0764

4. Oregon Workers’ Compensation Law

Statutory Citation: ORS Chapter 656 Official Source: https://www.oregonlegislature.gov/bills_laws/ors/ors656.html

General Framework: Oregon workers’ compensation law generally requires employers with one or more employees to carry workers’ compensation insurance. The system provides benefits for work-related injuries and illnesses.

Administration: Oregon Workers’ Compensation Division Contact: 800-452-0288 | https://wcd.oregon.gov

Note: Coverage determinations for remote workers involve fact-specific analysis. See Part 4 for more detailed information.

Minimum Wage Information for Oregon

Current Rate Information (As Published by Oregon BOLI)

According to the Oregon Bureau of Labor and Industries, Oregon operates a three-tiered minimum wage system based on geographic location. These rates are effective July 1, 2025 through June 30, 2026:

Region Effective Date 2025–2026 Rate Notes
Portland Metro Area July 1, 2025 $16.30/hour Applies within urban growth boundary
Standard Counties July 1, 2025 $15.05/hour Most other counties
Non-Urban Counties July 1, 2025 $14.05/hour Designated rural counties

Portland Metro Area includes: Areas within the urban growth boundary, including portions of Clackamas, Multnomah, and Washington Counties.

Standard Counties include: Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, Yamhill, and parts of Clackamas, Multnomah, and Washington Counties outside the urban growth boundary.

Non-Urban Counties include: Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler Counties.

Source: Oregon Bureau of Labor and Industries – Minimum Wage: https://www.oregon.gov/boli/workers/pages/minimum-wage.aspx

Interactive Map: BOLI provides an interactive map to determine which rate applies: https://www.oregon.gov/boli/workers/pages/minimum-wage.aspx

Annual Adjustments

According to ORS 653.025, Oregon’s minimum wage rates are generally adjusted annually on July 1st based on inflation as measured by the Consumer Price Index (CPI). BOLI typically announces the new rates by April 30th of each year.

2026 Rates: The rates for July 1, 2026 through June 30, 2027 will be calculated and announced by BOLI by April 30, 2026.

Source: https://www.oregon.gov/boli/workers/pages/minimum-wage-schedule.aspx

Application to Remote Workers

According to general legal principles and BOLI guidance:

  • Minimum wage typically applies based on where work is physically performed
  • An employee performing work from a location in Oregon would generally be subject to Oregon minimum wage for the region where the work is performed
  • Employer location is generally not the determining factor for minimum wage applicability

Determining Applicable Rate for Remote Workers:

According to BOLI regulations (OAR 839-020-0011), for employees who work remotely:

  • If an employee performs more than 50% of work in a pay period at a fixed location in Oregon, the rate for that region applies
  • If an employee performs 50% or less of work at a fixed location, the rate is determined by the region where work is performed
  • Employers may track hours by region and pay corresponding rates, OR pay the highest applicable rate for all hours

Note: These are general frameworks. Specific situations may vary. Employers should consult BOLI guidance at https://www.oregon.gov/boli/employers/pages/minimum-wage-faqs.aspx or legal counsel for particular circumstances.

Exemptions and Variations

According to Oregon law, certain exemptions or variations may apply in limited circumstances:

Tipped Employees: Oregon does NOT allow tip credits. Tipped employees must receive the full minimum wage for their region. Tips are in addition to, not instead of, minimum wage.

Source: ORS 653.035(3)

Youth Wage: Oregon does not have a separate youth minimum wage. Employees under 18 must generally be paid the same minimum wage as adult employees for the region where work is performed.

Potential Exemptions: Certain limited exemptions may exist under Oregon law for specific categories such as:

  • Some student workers in specific programs
  • Certain agricultural workers (under specific conditions)

Note: Exemptions are narrowly construed and fact-specific. Do not assume an exemption applies without verification from BOLI and legal counsel.

Source: ORS 653.010-653.261 and OAR 839-020-0015

Enforcement and Penalties

According to BOLI guidance, violations of minimum wage laws may result in:

  • Recovery of unpaid wages
  • Civil penalties
  • Potential investigation and enforcement action

To Report Violations: Contact BOLI at 971-245-3844 or submit a complaint at https://www.oregon.gov/boli/workers/pages/file-a-claim.aspx

Resources for Current Information

Overtime Requirements

Overtime Standards

Governing Framework: Oregon generally follows the federal Fair Labor Standards Act (FLSA) for overtime requirements, with some additional state-specific provisions.

Statutory Authority: ORS 653.010-653.261; OAR 839-020-0030 Official Source: https://www.oregon.gov/boli/employers/pages/overtime.aspx

General Overtime Threshold (as stated in statute/regulation):

  • Typically triggered after 40 hours worked in a workweek
  • Rate generally required: 1.5 times the employee’s regular rate of pay
  • Oregon does NOT generally require daily overtime (unlike California)

Source: OAR 839-020-0030

Application to Remote Workers: Overtime regulations typically apply based on the nature of the employment relationship and work performed, not work location. Remote workers performing non-exempt work would generally be subject to the same overtime requirements as on-site workers.

However, specific applicability depends on exemption status, which requires detailed analysis. See Exemptions section below.

Calculating Compensable Time

According to federal and Oregon guidance, “hours worked” for overtime calculation purposes may include:

  • Time actually performing work duties
  • Required meetings and training
  • Time waiting to perform work (in some circumstances)
  • On-call time (depending on restrictions on employee’s activities)
  • Travel time (under certain conditions)

⚠️ Complex Issue for Remote Workers:

Determining compensable time for remote workers can involve additional considerations:

  • After-hours email responses or messages
  • On-call time at home
  • Time spent in virtual meetings outside regular hours
  • Brief work tasks performed outside standard schedule

These determinations are fact-specific and depend on factors such as:

  • Whether the activity is required by the employer
  • Whether the employee is “suffered or permitted” to work
  • The degree of control or expectation by the employer

Employers should consult wage-hour counsel for guidance on tracking and paying remote workers properly.

Source: OAR 839-020-0040 (Hours Worked); U.S. DOL Fact Sheet #22

Overtime Exemptions

Oregon recognizes certain exemptions from overtime requirements. The most common exemptions include:

Executive, Administrative, and Professional (EAP) Exemptions

To potentially qualify for exempt status, employees generally must meet tests related to:

  1. Salary Basis: Paid a predetermined salary not subject to reduction based on quality or quantity of work performed
  2. Salary Level: Meets minimum salary threshold
  3. Duties: Performs exempt-level duties as defined by regulations

2025 Salary Threshold:

Following the November 15, 2024 federal court decision invalidating the DOL’s updated overtime rule, the nationwide salary threshold reverted to:

  • $684 per week ($35,568 annually) for EAP exemptions
  • This applies unless Oregon adopts a different state-specific threshold

Source: U.S. District Court for the Eastern District of Texas decision; BOLI guidance

Duties Tests:

According to federal regulations and Oregon guidance, exempt duties typically include:

Executive Exemption: Management duties, supervision of two or more employees, authority over hiring/firing decisions

Administrative Exemption: Office or non-manual work related to management or business operations, exercise of discretion and independent judgment

Professional Exemption: Work requiring advanced knowledge in a field of science or learning, or creative and original work in an artistic field

Note: Job title alone does not determine exemption status. Meeting the salary threshold alone is insufficient. All three tests (salary basis, salary level, and duties) must be satisfied. Consult BOLI guidance and legal counsel for classification decisions.

Source: 29 CFR Part 541; OAR 839-020-0005

Computer Professional Exemption

Oregon recognizes a computer professional exemption for certain IT workers who may be paid either:

  • On a salary basis meeting the threshold above, OR
  • On an hourly basis at a rate not less than $27.63/hour (as of 2019; verify current rate with BOLI)

Must also meet duties test: Work as computer systems analyst, programmer, software engineer, or similar role performing specific duties defined in regulations.

Source: OAR 839-020-0005; 29 CFR 541.400

Other Exemptions

Other exemptions that may apply under Oregon and federal law include:

  • Outside sales employees
  • Certain commissioned employees
  • Some agricultural workers
  • Certain transportation workers
  • Other categories specified in statute and regulation

Note: Exemptions are narrowly interpreted. Classification errors can result in significant back pay liability and penalties. Professional guidance is strongly recommended.

Source: ORS 653.010-653.261; 29 CFR Part 541

Special Industry Provisions

Oregon has specific overtime rules for certain industries:

Agricultural Workers: As of January 1, 2025, agricultural workers generally receive overtime pay for hours worked over 48 in a workweek (previously 55 hours). This threshold will continue to decrease in future years according to statutory schedule.

Source: ORS 653.025

Seafood Processors and Canneries: Special overtime provisions may apply. Consult BOLI for details.

Recordkeeping Requirements

According to Oregon law, employers generally must maintain records including:

  • Employee names and addresses
  • Birth dates (if under 19)
  • Job titles
  • When workweeks start (time and date)
  • Hourly rates of pay
  • Hours worked each day and weekly totals
  • Regular and overtime earnings
  • Total wages paid each pay period
  • Any additions or deductions from wages

Records Retention: Generally three years

Source: ORS 652.750; OAR 839-020-0010

Resources and Guidance

For specific questions about overtime:

Meal and Rest Break Requirements

Oregon’s Break Standards

Oregon law generally requires employers to provide meal and rest breaks to non-exempt employees.

Statutory Authority: ORS 653.261; OAR 839-020-0050 Source: https://www.oregon.gov/boli/employers/pages/meals-and-breaks.aspx

Rest Break Requirements

According to OAR 839-020-0050(6), Oregon employers generally must provide:

For Employees 18 and Older:

  • Duration: At least 10 minutes
  • Frequency: For every 4 hours worked (or major portion thereof, meaning 2 hours or more)
  • Paid Status: Must be paid time
  • Timing: Should be in the middle of each 4-hour work period, to the extent practical
  • Relief from Duties: Must be uninterrupted and employee must be relieved of all duties

For Employees Under 18:

  • Duration: At least 15 minutes (not 10)
  • Other provisions: Same as above

Examples for 8-Hour Shift: An employee working 8 hours would typically receive two 10-minute paid rest breaks (one approximately after 2 hours, one approximately after 6 hours).

Source: OAR 839-020-0050(6)

Meal Break Requirements

According to OAR 839-020-0050(2), Oregon employers generally must provide:

Basic Requirements:

  • Duration: At least 30 minutes
  • Trigger: For work periods of 6 to 8 hours
  • Paid Status: Generally unpaid, IF employee is completely relieved of all duties
  • Timing:
    • For shifts of 7 hours or less: Between the 2nd and 5th hour of work
    • For shifts over 7 hours: Between the 3rd and 6th hour of work

Additional Meal Breaks:

  • For shifts of 14 hours or more, an additional meal period is generally required

When Meal Breaks Must Be Paid: According to Oregon regulations, a meal break must be paid if:

  • The employee is NOT relieved of all duties
  • The employee must remain on call or available
  • The employee is interrupted to perform work duties
  • The nature of work prevents relief from all duties

Alternative Arrangements: In limited circumstances, a paid meal period of at least 20 minutes (but less than 30) may be allowed where the employer can show this is industry practice or custom.

Source: OAR 839-020-0050(2)

Application to Remote Workers

Meal and rest break requirements generally apply to remote workers performing non-exempt work in the same manner as on-site workers.

Potential Challenges for Remote Work:

  • Verifying that breaks are actually taken
  • Ensuring workers do not work during unpaid meal periods
  • Documenting compliance with break requirements
  • Handling interruptions during breaks

Considerations for Employers: Employers may wish to consider (these are not legal requirements, but general recommendations):

  • Implementing clear policies on break expectations for remote workers
  • Using time-tracking systems that record breaks
  • Training employees on the importance of taking required breaks
  • Establishing procedures for documenting break compliance

Consult employment counsel for developing compliant break policies for remote workers.

Exemptions from Break Requirements

According to OAR 839-020-0050, certain exemptions may apply:

Exempt Employees: Employees properly classified as exempt from overtime under the executive, administrative, professional, or other exemptions are generally not entitled to mandated meal and rest breaks (though employers may provide them voluntarily).

Collective Bargaining Agreements: Break requirements may be modified by collective bargaining agreements.

Specific Situations: Limited exemptions may exist for:

  • Employees working alone in certain retail or service establishments (for rest breaks only)
  • Other narrow circumstances specified in regulations

Note: Exemptions are fact-specific. Consult BOLI and legal counsel before concluding an exemption applies.

Special Break Requirements

Lactation Breaks

Oregon law requires employers to provide:

  • Reasonable unpaid break time for employees to express milk
  • A private location (not a bathroom) for expressing milk
  • Access to refrigeration or ability to bring cooler for milk storage
  • Applies until the child is 18 months old

Lactation breaks may run concurrently with paid rest breaks, but additional unpaid time must be provided as needed.

Source: ORS 653.077; OAR 839-020-0051

Heat Illness Prevention Breaks

Under Oregon OSHA rules, employees working in high heat conditions (90°F or higher) must be provided with heat illness prevention rest breaks. These breaks are in addition to standard rest and meal breaks.

Requirements vary based on temperature and acclimatization status.

Source: Oregon OSHA Administrative Order 5-2022

Enforcement and Penalties

According to BOLI guidance, violations of meal and rest break requirements may result in:

  • Recovery of unpaid wages for missed breaks
  • Civil penalties
  • Potential investigation and enforcement action

If an employer denies required breaks, the time should generally be paid.

To Report Violations: Contact BOLI at 971-245-3844

Resources

Oregon Paid Sick Leave

Legal Framework

Statutory Authority: ORS 653.601-653.661; OAR 839-007-0001 through 839-007-0065 Effective Date: January 1, 2016 (with amendments through 2025) Administering Agency: Oregon Bureau of Labor and Industries Official Resource: https://www.oregon.gov/boli/workers/pages/sick-time.aspx

General Program Description (Based on Official Sources)

According to the Oregon Bureau of Labor and Industries, Oregon’s sick time law generally:

  • Requires most employers to provide protected sick time to employees
  • Establishes different requirements based on employer size and location
  • Provides for accrual, carryover, and usage of sick time
  • Protects employees from retaliation for using sick time

Note: Actual applicability depends on specific circumstances including employer size, employee work hours, and location.

Coverage Framework

Employer Coverage

According to ORS 653.601 and BOLI guidance:

Employers Generally Required to Provide PAID Sick Time:

  • Employers with 10 or more employees statewide, OR
  • Employers with 6 or more employees if the employer has a location in Portland

Employers Required to Provide UNPAID Sick Time:

  • Employers with fewer than 10 employees statewide (fewer than 6 if in Portland)

Employee Count Determination: The count is generally based on the average number of employees during 20 workweeks in the preceding calendar or fiscal year.

Source: ORS 653.606; OAR 839-007-0010

Exemptions May Include:

  • Federal employees
  • Employees covered by railroad unemployment insurance
  • Certain participants in work-study programs
  • Independent contractors (see Part 4 for classification discussion)

Verification: Employers uncertain about coverage should consult BOLI guidance or legal counsel.

Employee Eligibility

According to the law, employees generally become eligible to use accrued sick time after working for an employer for 90 calendar days.

Coverage typically includes:

  • Full-time employees
  • Part-time employees
  • Temporary employees
  • Seasonal employees

Remote Workers: Generally subject to same sick time requirements as on-site workers when working from locations in Oregon.

Source: ORS 653.616; OAR 839-007-0030

Accrual Provisions (As Described in Statute/Regulations)

According to Oregon law, the general accrual framework typically includes:

Accrual Rate:

  • 1 hour of sick time for every 30 hours worked

Accrual Methods:

Employers may choose either:

  1. Accrual Method: Employees accrue sick time as they work at the rate of 1 hour per 30 hours worked
  2. Frontloading Method: Employers may provide at least 40 hours of sick time at the beginning of each year

Annual Usage Cap: Employers may limit usage to 40 hours per year

Total Accrual Cap: Employers may cap total accrual at 80 hours

Carryover: Employees may generally carry over up to 40 hours of unused sick time to the next year (subject to the 80-hour total accrual cap).

Exception: If an employer frontloads at least 40 hours and pays out any unused time at year end, carryover is not required.

Source: ORS 653.606; OAR 839-007-0030

Example Calculation (Illustrative Only):

An employee working 40 hours per week would generally accrue:

  • 40 hours ÷ 30 = approximately 1.33 hours of sick time per week
  • Over a year: approximately 69 hours (but subject to caps)
  • With 40-hour annual usage cap: can use up to 40 hours per year
  • Can carry over unused hours up to the 80-hour total cap

Note: This is a simplified example. Actual accrual depends on specific circumstances, employer policy, and hours worked. This is not a determination.

Usage Provisions (As Stated in Law)

Permitted Uses (from statute)

According to ORS 653.616, sick time may generally be used for:

  1. Employee’s own health needs: • Mental or physical illness, injury, or health condition • Medical diagnosis, care, or treatment • Preventive medical care
  2. Family member’s health needs: • Care for family member with illness, injury, or health condition • Medical diagnosis, care, or treatment of family member • Preventive care for family member
  3. Public health emergencies: • When business or child’s school/care closed due to public health emergency • Quarantine ordered by public health authority or healthcare provider • Compliance with emergency evacuation orders • Staying home during dangerous air quality or heat conditions
  4. Qualifying events under Oregon Family Leave Act or similar laws: • Domestic violence, harassment, sexual assault, or stalking situations • Care for child after birth or adoption • Other qualifying purposes under OFLA
  5. Blood Donation: • Effective January 1, 2026, to participate in accredited blood donation programs (American Red Cross or American Association of Blood Banks)

Source: ORS 653.616; SB 1108 (2025)

Eligible Family Members (as defined in statute)

The statute defines family members as:

  • Spouse or domestic partner
  • Custodial parent, non-custodial parent, or guardian
  • Child (biological, adopted, foster, stepchild, or ward)
  • Grandparent or grandchild
  • Parent-in-law
  • Any individual with whom employee has family-like relationship

Source: ORS 653.601(7)

Notice and Documentation

According to Oregon regulations, general provisions regarding notice and documentation include:

Employee Notice to Employer:

  • Employees should provide notice of need for sick time “as soon as practicable”
  • Employers may establish reasonable notice procedures
  • Employers cannot require employee to find replacement as condition of using sick time

Employer’s Right to Request Documentation:

  • Employers may request documentation if sick time exceeds 3 consecutive scheduled work days
  • Documentation may include note from healthcare provider or other reasonable verification
  • Employers may not require disclosure of health information beyond what is necessary to verify need

Source: OAR 839-007-0040

Employer Obligations (From Statute and Regulations)

The statute and regulations generally require employers to:

Notice Requirements:

  • Provide written notice of sick time rights to employees (individually, in handbook, or by posting)
  • Display required workplace poster in English and other languages

Record-Keeping:

  • Maintain records of sick time accrued and used
  • Provide statement of available sick time at least quarterly (typically on pay stubs)

Non-Retaliation:

  • Cannot retaliate against employees for requesting or using sick time
  • Cannot count sick time usage as negative attendance for purposes of discipline

Rate of Pay: For paid sick time, employees must generally be paid at their regular rate of pay (or minimum wage, whichever is greater).

Source: ORS 653.606-653.656; OAR 839-007-0050

Potential Consequences of Non-Compliance:

According to BOLI guidance, non-compliance may result in:

  • Back payment of unpaid sick time wages
  • Civil penalties
  • Potential investigation and enforcement action
  • Damages and attorney fees in civil lawsuits

Note: Specific consequences depend on circumstances. Consult legal counsel to understand potential exposure.

Relationship with Other Leave

Paid sick time generally operates in the following manner with respect to other leave programs:

Oregon Family Leave Act (OFLA): Sick time may be used concurrently with OFLA leave. Employers may require (or employees may choose) to use sick time during OFLA leave.

Federal FMLA: Similar concurrent use provisions may apply.

Paid Leave Oregon: Paid Leave Oregon benefits (effective September 2023) are generally in addition to employer-provided paid sick time, not a replacement.

Employer PTO Policies: Employers with paid time off (PTO) policies that provide equivalent or greater benefits may not need to provide additional sick time, as long as the PTO can be used for all purposes allowed under the sick time law.

Source: ORS 653.641; BOLI guidance

Note: These interactions can be complex. Consult legal counsel for policy coordination.

Termination and Payout

Upon Separation: Employers are generally NOT required to pay out unused sick time when employment ends, unless the employer’s policy provides otherwise.

Rehire within 180 Days: If an employee is rehired within 180 days, previously accrued unused sick time must generally be reinstated.

Source: ORS 653.616

Resources for Compliance

Other Leave Entitlements

Oregon Family Leave Act (OFLA)

Statutory Authority: ORS 659A.150-659A.186 Official Source: https://www.oregon.gov/boli/workers/pages/family-leave.aspx

General Overview:

According to Oregon law, OFLA generally provides eligible employees with up to 12 weeks of unpaid, job-protected leave in a 12-month period for qualifying reasons.

Employer Coverage: Generally applies to employers with 25 or more employees

Employee Eligibility: Employees must generally have worked:

  • At least 180 days for the employer, AND
  • An average of 25 hours per week

Qualifying Reasons May Include:

  • Serious health condition of employee
  • Serious health condition of family member
  • Pregnancy disability
  • Care for newborn, adopted, or foster child
  • Leave related to domestic violence, harassment, sexual assault, or stalking

Note: OFLA provides broader coverage than federal FMLA in some respects (e.g., applies to smaller employers, covers domestic partners, broader definition of family member).

For detailed information: Contact BOLI or consult legal counsel.

Source: https://www.oregon.gov/boli/workers/pages/family-leave.aspx

Paid Leave Oregon (PLO)

Statutory Authority: ORS 657B Effective Date: Contributions began January 1, 2023; benefits available September 3, 2023 Administering Agency: Oregon Employment Department Official Resource: https://paidleave.oregon.gov

General Overview:

According to the Oregon Employment Department, Paid Leave Oregon is a state-run paid family and medical leave insurance program. The program generally provides:

  • Up to 12 weeks of paid leave for most qualifying events
  • Up to 14 weeks for pregnancy-related medical leave
  • Additional 2 weeks if employee experiences multiple qualifying events in same year

Funding: Program is funded by payroll contributions:

  • Total contribution rate: 1.0% of wages (as of 2025)
  • Generally split 60% employee / 40% employer (employers with fewer than 25 employees are exempt from employer portion)

Qualifying Reasons Include:

  • Own serious health condition
  • Care for family member with serious health condition
  • Bonding with new child
  • Safe leave related to domestic violence, harassment, sexual assault, stalking

Benefit Amount: Generally 100% of average weekly wage up to $1,129.09 per week (for 2025), then 65% of wages above that, subject to cap.

Relationship to Other Leave:

  • Paid Leave Oregon is generally IN ADDITION TO employer-provided sick time (not a replacement)
  • May run concurrently with OFLA or FMLA leave
  • Employees can use paid sick time to supplement PLO benefits

For information: Visit https://paidleave.oregon.gov or call 833-854-0166

Note: This is a complex program. Employers and employees should consult official PLO guidance for specific requirements and benefit calculations.

Military Leave

Oregon law generally provides protections for employees in military service:

ORS 399.230-399.236 provides for:

  • Unpaid leave for required military training or active service
  • Protection against discrimination based on military service
  • Reinstatement rights

Federal USERRA also provides protections for service members.

Source: https://www.oregon.gov/boli/workers/pages/military-leave.aspx

Jury Duty Leave

According to ORS 10.061, employers generally may not:

  • Discharge, threaten, or coerce employees due to jury service
  • Require employees to use vacation or other leave for jury duty

Employers are not required to pay employees during jury service (but may do so voluntarily).

Voting Leave

Oregon conducts elections entirely by mail, so employers are generally not required to provide time off to vote.

Bereavement Leave

Oregon does not currently have a law requiring employers to provide bereavement leave, though employers may offer it voluntarily.

Domestic Violence Leave

Victims of domestic violence, harassment, sexual assault, or stalking may be entitled to:

  • Protected leave under OFLA (if eligible)
  • Use of paid sick time for related needs
  • Paid Leave Oregon benefits

Source: ORS 659A.270-659A.290; BOLI guidance

Employee Classification Standards in Oregon

Why Classification Matters

Worker classification as “employee” versus “independent contractor” has major implications:

For Workers:

  • Affects eligibility for unemployment insurance benefits
  • Affects workers’ compensation coverage
  • Affects wage and hour protections
  • Affects leave benefit eligibility
  • Affects tax withholding and reporting

For Businesses:

  • Affects unemployment insurance tax obligations
  • Affects workers’ compensation insurance requirements
  • Affects payroll tax withholding
  • Affects compliance with wage and hour laws
  • Affects benefit obligations

Oregon uses different tests for different purposes. A worker might be classified differently for unemployment insurance purposes versus tax purposes versus wage and hour purposes.

Oregon’s Primary Classification Tests

Oregon agencies apply different tests depending on the legal context:

1. ABC Test (For Unemployment Insurance and Some Other Purposes)

Statutory Authority: ORS 670.600 Applies To: Oregon Department of Revenue, Employment Department, Construction Contractors Board, Landscape Contractors Board

General Framework:

According to ORS 670.600, for purposes covered by this statute, an individual is presumed to be an employee UNLESS the employer can demonstrate all of the following:

Part A – Freedom from Control: The individual is free from direction and control over the means and manner of providing services, both under contract and in fact.

Part C – Independent Business (Must meet 3 of 5 factors): The individual is customarily engaged in an independently established business, as demonstrated by three or more of the following:

  1. Has a business location separate from the hiring entity’s location or outside the residence of the individual
  2. Takes financial risk by purchasing tools and equipment, renting office space, paying business expenses
  3. Realizes profit or loss in performing services
  4. Provides services for multiple persons
  5. Holds themselves out as available to provide services to the general public

Note: This is commonly referred to as an “AC Test” (not full ABC) because Oregon’s version focuses on factors A and C.

Source: ORS 670.600; https://www.oregon.gov/employ/Businesses/Tax/Pages/Independent-Contractors.aspx

Burden of Proof: The employer bears the burden of proving independent contractor status under this test.

2. Economic Realities Test (For Wage and Hour Purposes)

Used By: Oregon Bureau of Labor and Industries (BOLI) for wage and hour law enforcement

General Framework:

According to BOLI guidance, for purposes of wage and hour law (including minimum wage and overtime), Oregon applies the “economic realities” test used by federal courts under the Fair Labor Standards Act.

This test generally examines:

  1. Nature and degree of control: The extent to which the employer controls how work is performed
  2. Opportunity for profit or loss: Whether the worker has opportunity for profit or loss based on managerial skill
  3. Investment in facilities and equipment: The worker’s investment compared to the employer’s investment
  4. Permanency of relationship: Whether the relationship is ongoing or project-based
  5. Degree of skill required: Whether work requires special skill and initiative
  6. Integral nature of work: Whether the work is integral to the employer’s business

No single factor is determinative. All factors are weighed in totality to determine whether the worker is economically dependent on the employer (employee) or in business for themselves (independent contractor).

Source: BOLI guidance at https://www.oregon.gov/boli/employers/pages/employee-or-independent-contractor.aspx

3. Right-to-Control Test (For Civil Rights Purposes)

Used By: BOLI Civil Rights Division

General Framework:

For purposes of civil rights law, BOLI applies a “right-to-control” test examining:

  • Control over means and manner of work performance
  • Control over worker’s schedule
  • Who provides tools and equipment
  • Terms suggesting employer-employee relationship

Source: BOLI Civil Rights Division

Classification Scenarios (For General Understanding Only)

⚠️Every situation is unique and depends on complete factual circumstances and official determination by the relevant Oregon agency.

Scenario Category: Remote Software Developer

Example Situation: A business hires a software developer who works remotely from their home office. The developer:

  • Uses their own computer and software
  • Sets their own hours
  • Works for multiple clients
  • Has a business license and LLC
  • Invoices monthly for projects completed
  • Has separate business website advertising services

General Observations: This scenario may share some characteristics with situations that courts and agencies have analyzed as independent contractor relationships, such as:

  • Use of own equipment (factor favoring independent contractor)
  • Working for multiple clients (factor favoring independent contractor)
  • Business infrastructure (factor favoring independent contractor)
  • Invoice-based payment (may favor independent contractor)

However, classification would depend on complete factual analysis including:

  • Degree of control over how work is performed
  • Whether work is integral to hiring entity’s business
  • Actual economic independence
  • All other circumstances

This is not a classification determination. Actual determination would require analysis by Oregon Employment Department, Department of Revenue, or BOLI based on all facts and applicable legal test.

Scenario Category: Remote Customer Service Representative

Example Situation: A company hires a remote customer service representative who:

  • Works set hours assigned by company (9am-5pm)
  • Uses company-provided software and scripts
  • Receives detailed training and ongoing supervision
  • Works exclusively for one company
  • Receives hourly pay through payroll
  • Cannot hire others to perform the work

General Observations: This scenario may share some characteristics with situations that courts and agencies have analyzed as employee relationships, such as:

  • Significant control over hours and methods (factor favoring employee)
  • Exclusive relationship with one business (factor favoring employee)
  • Company-provided tools/training (factor favoring employee)
  • Hourly wage through payroll (may favor employee)

However, classification would depend on complete factual analysis including:

  • Actual degree of control exercised
  • Economic realities of relationship
  • All relevant factors under applicable test
  • Other specific circumstances

This is not a classification determination. Actual determination would require analysis by Oregon Employment Department, Department of Revenue, or BOLI based on all facts and applicable legal test.

⚠️ EXTREMELY IMPORTANT: The scenarios above are for illustration only and drastically simplified. Real classification determinations involve:

  • Analysis of all facts and circumstances
  • Application of specific legal tests
  • Agency or court review
  • Consideration of industry practices
  • Other factors not mentioned

DO NOT make classification decisions based on these examples. Consult legal counsel and tax professionals for actual classification analysis.

Remote Work Considerations

For remote workers, classification analysis may involve additional complexities:

  • Physical work location versus business location
  • Nature of work relationship in virtual environment
  • Level of control and independence in remote setting
  • Tools and technology provided or owned
  • Integration into business operations

These factors do not change the legal tests but may affect how the tests are applied.

Classification of remote workers should be reviewed with legal counsel familiar with Oregon law and specific circumstances.

Potential Consequences of Misclassification

According to Oregon agency guidance and statutes, misclassification may result in:

For Employers:

  • Back payment of unemployment insurance taxes and penalties
  • Workers’ compensation premium adjustments and penalties
  • Exposure to wage and hour claims (minimum wage, overtime, breaks)
  • Possible civil penalties from $1,000 to $5,000 per misclassified worker
  • Tax implications at state and federal levels
  • Potential benefit claim liability

For Workers:

  • May affect access to unemployment benefits
  • May affect workers’ compensation coverage
  • May affect wage and hour protections
  • May affect leave benefit eligibility
  • May affect retirement and tax planning

Note: Specific consequences depend on many factors and applicable law. This is general information only.

Source: ORS 670.600; various Oregon agency guidance

How to Seek Guidance

Classification questions should be addressed through:

Workers' Compensation Overview for Oregon

Legal Framework

Statutory Authority: ORS Chapter 656 Administering Agency: Oregon Workers’ Compensation Division

Ombuds Office for Oregon Workers: 800-927-1271 (Provides assistance to injured workers)

General Coverage Requirements (As Stated in Law)

According to Oregon statutes (ORS 656.017 and 656.027), workers’ compensation coverage is generally:

Required for:

  • Employers with one or more employees in Oregon (including part-time)

Threshold: No minimum number of employees required – coverage generally required with first employee

Type of System: Oregon operates a private insurance market with state fund option (SAIF Corporation)

Exemptions: Approximately 30 exemptions exist under ORS 656.027, including:

  • Federal employees
  • Some corporate officers (under certain conditions)
  • Some sole proprietors and partners
  • Certain real estate agents
  • Casual workers (under narrow definition)
  • Other categories specified in statute

Source: ORS 656.017; 656.027; https://wcd.oregon.gov/employer/Pages/compensation-insurance-overview.aspx

⚠️ Note: Coverage determinations can be complex and fact-specific. Employers uncertain about their obligations should consult Oregon Workers’ Compensation Division at 888-877-5670 or legal counsel.

Oregon’s Workers’ Compensation System

Oregon operates a private insurance market system with multiple options:

Insurance Options:

  1. Private Insurance Carriers: Purchase coverage from licensed private insurers
  2. SAIF Corporation: State-chartered workers’ compensation insurance company (quasi-public option)
  3. Self-Insurance: Large employers may qualify to self-insure with Division approval

What this generally means:

  • Employers have choice of insurance carrier
  • Competition among insurers
  • Rates vary based on industry, claims history, and other factors

Source: https://wcd.oregon.gov/employer/Pages/insurance-options.aspx

Compensable Injuries and Illnesses

General Legal Standard:

According to Oregon law and case precedent, workers’ compensation typically covers injuries or illnesses that:

  • Arise out of employment: Have a causal connection to work
  • Occur in the course of employment: Happen during work time and in work setting

Source: ORS 656.005; Sandberg v. JC Penney Co., 243 Or App 342 (2011)

Remote Worker Coverage Considerations

⚠️ EXTREMELY COMPLEX AND FACT-SPECIFIC: Coverage of home office injuries involves detailed factual analysis. The following is general background only.

Legal Standard for Remote Workers

According to Oregon Court of Appeals decision in Sandberg v. JC Penney Co. (2011), factors that may be considered in determining whether a remote worker’s injury is compensable include:

Factors Courts May Consider:

  • Whether employee was engaged in work activity at time of injury
  • Whether injury occurred in designated work area/home office
  • Whether injury occurred during work hours
  • Link between injury and employee’s job duties
  • Whether activity was authorized or directed by employer
  • Whether activity served employer’s business interests
  • Nature of hazard that caused injury

⚠️ Important: This list is not exhaustive and no single factor is determinative. Each case depends on its complete factual circumstances.

Source: Sandberg v. JC Penney Co., 243 Or App 342 (2011)

Illustrative Scenarios (For General Understanding Only)

⚠️Every workers’ compensation claim is unique and depends on official agency determination by the Oregon Workers’ Compensation Division based on complete factual information.

Scenario Category: Work-Related Activities in Home Office

Example Situation: Employee trips over computer cables in designated home office while walking to retrieve work documents during scheduled work hours.

General Observations: This type of scenario may share some characteristics with situations that have been found compensable in other contexts, such as:

  • Activity was work-related (retrieving work documents)
  • Occurred in designated work area (home office)
  • During authorized work time

However, compensability would depend on complete factual analysis including:

  • Whether employer knew of and authorized home office setup
  • Whether home office was formally designated as work location
  • Whether cables were necessary for work
  • Other specific circumstances and facts

This is NOT a coverage determination. Actual determination would be made by Oregon Workers’ Compensation Division or insurer based on all facts.

Example Situation: Employee develops carpal tunnel syndrome from extended computer use performing work duties at home.

General Observations: Repetitive stress injuries from work activities may potentially be compensable in some circumstances, but determination depends on factors such as:

  • Medical documentation establishing work-relatedness
  • Whether condition arose from employment duties
  • Relationship between work activities and injury
  • Other relevant facts

Medical causation is critical. Healthcare provider must establish connection between condition and work.

This is NOT a coverage determination. Actual determination requires medical evaluation and official claims process.

Scenario Category: Personal Activities at Home

Example Situation: Employee injured while preparing personal meal in kitchen during unpaid lunch break.

General Observations: Personal comfort activities unrelated to work duties may be less likely to be considered work-related based on general principles, but specific facts matter including:

  • Whether employee was completely relieved of all work duties
  • Whether kitchen is within or separate from designated work area
  • Whether any work activity was involved
  • Other circumstances

This is general background only. Not a coverage determination.

Example Situation: Employee slips on stairs in home while going to answer door for personal delivery during work hours.

General Observations: Personal errands or activities, even during work hours, typically lack the work connection necessary for compensation, but fact-specific analysis is required.

⚠️Every workers’ compensation claim depends on its unique facts. Coverage determinations are made by:

  • Oregon Workers’ Compensation Division based on investigation
  • Insurance claims adjusters based on policy and law
  • Workers’ Compensation Board Administrative Law Judges on appeal
  • Courts on further appeal

Do NOT make claims decisions based on these examples. For actual injuries:

  1. Report to employer immediately
  2. Seek appropriate medical care
  3. File workers’ compensation claim (Form 801)
  4. Let official process determine coverage

For coverage questions: Consult Oregon Workers’ Compensation Division at 800-452-0288 or workers’ compensation attorney.

Benefits Generally Available (From Statute)

According to Oregon workers’ compensation statutes, benefits may include:

Medical Treatment:

  • Payment for all reasonable and necessary medical treatment for accepted conditions
  • Choice of doctor (subject to MCO restrictions if applicable)

Time Loss (Wage Replacement):

  • Temporary disability payments if unable to work
  • Generally 66 2/3% of pre-injury wages (subject to statutory caps)
  • After 3-day waiting period

Permanent Disability:

  • Permanent partial disability (PPD) awards for lasting impairment
  • Permanent total disability for complete inability to work

Vocational Services:

  • May be available if permanent disability prevents return to regular work

Death Benefits:

  • Benefits to surviving spouse and minor children if death results from work injury

Benefit amounts and eligibility depend on injury circumstances, date of injury, and statutory formulas. Consult Oregon Workers’ Compensation Division or claims administrator for specific benefit calculations.

Source: ORS 656.204-656.268; https://wcd.oregon.gov/worker/pages/benefits.aspx

Reporting and Claim Process (General Framework)

According to Oregon regulations and BOLI guidance:

For Employees:

  1. Report injury to employer: Immediately (delay may affect claim)
  2. Seek medical attention: From authorized provider
  3. File claim: Complete Form 801 (employer typically assists)
  4. Deadline: Generally 90 days from date of injury (may be extended for occupational diseases)

For Employers:

  1. Provide Form 801: When notified of injury
  2. Report to insurer: Within 5 days of notification
  3. Report to Division: For disabling injuries (insurer typically handles)
  4. Continue wages: If possible, for first three days

Claim Acceptance/Denial:

  • Insurer has 60 days to accept or deny claim
  • If accepted, benefits begin
  • If denied, worker may request hearing before Workers’ Compensation Board

Source: ORS 656.262-656.265; https://wcd.oregon.gov/worker/pages/filing-a-claim.aspx

⚠️ Note: Deadlines are strictly enforced. Late reporting may affect claim. When in doubt, report promptly and seek guidance.

Best Practices for Remote Work (Recommendations Only)

The following are general recommendations compiled from various sources. They do NOT constitute legal requirements and may not be suitable for all situations. Consult legal counsel and safety professionals.

For Employers (Considerations):

  • Consider providing ergonomic assessment or equipment for home offices
  • Consider documenting remote work location and setup arrangements
  • Consider developing clear injury reporting procedures for remote workers
  • Consider safety training specific to home office environments
  • Consider clear policies on work hours and duties for remote workers

For Employees (Considerations):

  • Consider setting up dedicated, organized work area
  • Consider documenting work location and setup
  • Consider reporting work-related injuries promptly (same as on-site)
  • Consider maintaining clear work hour boundaries
  • Consider following employer safety guidelines

These are considerations only, not requirements.

Telecommuters from Other States

Important Note: If employers hire remote workers located in other states, workers’ compensation coverage becomes more complex:

According to SAIF Corporation guidance:

  • Workers who are permanent residents of other states may not qualify for Oregon benefits
  • Other states may not recognize Oregon coverage for out-of-state workers
  • Employers should contact regulatory agencies in each state where remote workers are located

Source: https://www.saif.com/employer-guide/coverage-details/telecommuters.html

Consult insurance carrier and legal counsel for multi-state remote workforce coverage.

Resources and Contacts

Oregon Workers’ Compensation Division:

Ombuds for Oregon Workers:

  • Phone: 800-927-1271
  • Provides free assistance to injured workers

For Legal Advice:

  • Workers’ compensation attorney
  • Oregon State Bar Lawyer Referral Service: 503-684-3763 or 800-452-7636

For Insurance Questions:

  • Your insurance carrier or SAIF Corporation: 800-285-8525

⚠️ FINAL CRITICAL REMINDER: Workers’ compensation is a highly specialized area involving complex medical, legal, and factual determinations. Coverage questions should be directed to:

  1. Oregon Workers’ Compensation Division for official determinations: 800-452-0288
  2. Licensed attorney for legal advice
  3. Medical professionals for injury evaluation and treatment

Tax Information for Remote Work

Tax laws change frequently and vary by individual circumstances. Consult:

  • A licensed CPA
  • An IRS enrolled agent
  • A tax attorney
  • The Oregon Department of Revenue
  • The IRS

Do not make tax decisions without professional guidance.

Oregon Income Tax Overview

Oregon operates a progressive income tax system. According to the Oregon Department of Revenue, for the 2025 tax year, Oregon’s tax rates generally range from 4.75% to 9.90% depending on filing status and taxable income.

Key Characteristics:

  • Progressive rate structure (higher rates on higher income)
  • Based on federal taxable income with Oregon-specific adjustments
  • No general sales tax in Oregon
  • Taxpayers may be subject to local taxes in certain jurisdictions

Source: Oregon Department of Revenue: https://www.oregon.gov/dor

Income Tax for Remote Workers

General Principle: According to Oregon tax law, Oregon generally taxes income based on residency and source of income.

For Oregon Residents:

  • Generally pay Oregon income tax on all income regardless of where work is performed
  • May receive credit for taxes paid to other states on income earned there

For Non-Residents Working Remotely FROM Oregon:

  • Generally pay Oregon income tax on income earned while physically working in Oregon
  • The location where work is performed typically determines tax obligation, not employer location

Source: ORS 316.027; Oregon Department of Revenue guidance

Example Scenarios (Illustrative Only):

Scenario 1: Oregon resident works remotely for out-of-state company → Generally pays Oregon income tax on all income

Scenario 2: Washington resident performs work remotely from home in Washington for Oregon company
→ Generally does NOT owe Oregon income tax (but check employer withholding requirements)

Scenario 3: California resident performs some work in Oregon → May owe Oregon tax on Oregon-sourced income

These are simplified examples. Actual tax liability depends on specific circumstances, tax treaties, and professional tax advice.

Employer Withholding Obligations

General Rule: Employers must generally withhold Oregon income tax for:

  • Employees who are Oregon residents, OR
  • Employees who perform services in Oregon

Remote Workers: According to Oregon Department of Revenue guidance, if an employee performs services while physically present in Oregon, those wages are generally subject to Oregon withholding, regardless of:

  • Where employer is located
  • Where employee lives (for Oregon-sourced income)
  • Whether arrangement is temporary or permanent

Source: Oregon Department of Revenue: https://www.oregon.gov/dor

For Employers:

  • Must register with Oregon Department of Revenue if employing workers in Oregon
  • Must withhold Oregon income tax from Oregon-source wages
  • Must file quarterly Combined Payroll Tax Reports (Forms OQ and 132)

Registration: Obtain Business Identification Number (BIN) from Oregon DOR Phone: 503-378-4988 or 800-356-4222

Unemployment Insurance Tax

Oregon Unemployment Insurance: Employers with employees performing services in Oregon generally must:

  • Register with Oregon Employment Department
  • Pay unemployment insurance (UI) taxes
  • File quarterly reports

2025 UI Wage Base: $54,300 Tax Rates: Range from 0.9% to 5.4% for 2025 (varies by employer)

Source: Oregon Employment Department: https://www.oregon.gov/employ/Businesses/Tax/Pages/default.aspx

Paid Leave Oregon Contributions

Employers with employees in Oregon generally must:

  • Pay contributions to Paid Leave Oregon program
  • Withhold employee portion from wages

2025 Contribution Rate: 1.0% of wages

  • Generally split: 60% employee / 40% employer
  • Employers with fewer than 25 employees exempt from employer portion

Source: https://paidleave.oregon.gov

Tax Nexus Considerations

For Businesses: Having employees working remotely in Oregon may create “tax nexus” (tax presence) triggering:

  • Oregon corporate income/excise tax obligations
  • Registration requirements
  • Filing obligations

Nexus is fact-specific. Consult tax professionals if remote workers may create nexus in Oregon.

Source: Oregon Department of Revenue Business Division: 503-378-4988

Local Transit Taxes

Certain Oregon jurisdictions impose transit payroll taxes:

TriMet Transit Tax (Portland Metro Area):

  • 0.7518% of wages (as of 2025)
  • Applies to employers with employees working in TriMet district (Clackamas, Multnomah, Washington counties)

Lane Transit District Tax (Eugene-Springfield Area):

  • 0.7% of wages (as of 2025)
  • Applies to employers with employees working in Lane County

Source: Oregon Department of Revenue: https://www.oregon.gov/dor/programs/businesses/Pages/transit.aspx

Record-Keeping for Tax Purposes

Employers should maintain records of:

  • Where remote employees physically work
  • Time spent working in different jurisdictions
  • Wages allocated to different jurisdictions
  • Withholding calculations and remittances

Retention Period: Generally 3-4 years minimum (longer for some purposes)

Resources for Tax Information

Oregon Department of Revenue:

Oregon Employment Department:

IRS (Federal Tax Information):

For Professional Tax Advice:

Anti-Discrimination Protections

Oregon Civil Rights Laws

Statutory Authority: ORS Chapter 659A Enforcing Agency: Oregon Bureau of Labor and Industries (BOLI) – Civil Rights Division Official Source: https://www.oregon.gov/boli/civil-rights/pages/index.aspx

Protected Characteristics

According to Oregon law, employment discrimination is generally prohibited based on:

  • Race
  • Color
  • Religion
  • Sex (including pregnancy, childbirth, and related conditions)
  • Sexual orientation
  • Gender identity
  • National origin
  • Marital status
  • Age (18 and over)
  • Disability
  • Military service or veteran status
  • Victims of domestic violence, harassment, sexual assault, or stalking
  • Source of income (in housing context)
  • Use of legal tobacco products outside work
  • Whistleblowing activities

Coverage: Generally applies to employers with one or more employees (some protections have different thresholds)

Source: ORS 659A.030-659A.145

Prohibited Actions

Oregon law generally prohibits employers from:

  • Refusing to hire based on protected characteristic
  • Discriminating in compensation, terms, or conditions of employment
  • Discharging or disciplining based on protected characteristic
  • Retaliating against employees who oppose discrimination or participate in investigations

Application to Remote Workers

Anti-discrimination protections generally apply to remote workers in the same manner as on-site workers. Remote work arrangements cannot be used to circumvent civil rights protections.

Harassment Prevention

Oregon law requires employers with 6 or more employees to:

  • Adopt written sexual harassment policy
  • Provide policy to all employees
  • Post policy in workplace

Remote workers should receive the same harassment policies and training as on-site workers.

Source: ORS 659A.230

Reasonable Accommodation

For Disabilities: Employers generally must provide reasonable accommodation for known disabilities of qualified employees unless undue hardship.

For Religion: Employers generally must reasonably accommodate religious practices unless undue hardship.

Remote work may sometimes serve as a reasonable accommodation, depending on circumstances.

Filing Discrimination Complaints

With BOLI:

With EEOC (Federal):

  • Phone: 1-800-669-4000 (TTY: 1-800-669-6820)
  • Website: https://www.eeoc.gov
  • Deadline: Generally 300 days from discriminatory act

Resources

Resources

Oregon State Agencies

Oregon Bureau of Labor and Industries (BOLI)

Oregon Workers’ Compensation Division

Oregon Employment Department

Oregon Department of Revenue

Paid Leave Oregon

Federal Agencies

U.S. Department of Labor

U.S. Equal Employment Opportunity Commission

Internal Revenue Service

Legal Assistance

Oregon State Bar

Legal Aid Services of Oregon

Required Workplace Posters

Oregon employers must display various workplace posters. These are available free from BOLI:

Required posters typically include:

  • Minimum Wage
  • Sick Time
  • Equal Employment Opportunity
  • Workers’ Compensation Notice
  • Unemployment Insurance
  • Paid Leave Oregon
  • OSHA Safety and Health Protection

Additional Information

Oregon Occupational Safety and Health (Oregon OSHA)

Business Oregon (Economic Development)

Frequently Asked Questions

General Questions

Q: Does Oregon law apply to remote workers?

A: Generally yes, if the remote worker is physically performing work from a location in Oregon. Oregon employment laws typically apply based on where work is physically performed, not where the employer is located. However, specific applicability depends on the particular law and circumstances. Consult BOLI or legal counsel for specific situations.

Q: What if my employer is in another state but I work from home in Oregon?

A: Oregon employment laws, including minimum wage, overtime, sick leave, and other protections, typically apply when you physically perform work in Oregon. Your employer generally must comply with Oregon requirements for work performed here. For tax withholding and specific compliance questions, consult Oregon Department of Revenue or legal counsel.

Q: Which minimum wage rate applies if I work remotely in Oregon?

A: The applicable minimum wage generally depends on where you physically perform work in Oregon. BOLI provides an interactive map at https://www.oregon.gov/boli/workers/pages/minimum-wage.aspx to determine which of the three rates (Portland Metro $16.30, Standard $15.05, or Non-Urban $14.05 for 2025-2026) applies to your work location. If you work in multiple regions, specific allocation rules may apply. Consult BOLI for complex situations.

Wage and Hour Questions

Q: Am I entitled to overtime if I work remotely?

A: Overtime requirements generally apply to remote workers in the same manner as on-site workers. If you are a non-exempt employee, you typically must be paid overtime (1.5x regular rate) for hours worked over 40 in a workweek. However, some employees may be exempt from overtime based on salary level and job duties. Classification should be reviewed with your employer or legal counsel.

Q: Do I get meal and rest breaks when working from home?

A: Yes, if you are a non-exempt employee. Oregon’s meal and rest break requirements generally apply to remote workers. You typically receive:

  • 10-minute paid rest breaks for every 4 hours worked (15 minutes if under 18)
  • 30-minute meal break for shifts of 6+ hours (unpaid if completely relieved of duties)

However, compliance and verification can be more complex for remote work. Employers should establish clear policies.

Q: Can my employer track my computer activity when I work from home?

A: Oregon does not have specific laws prohibiting employer monitoring of work computers, and employers generally may monitor company equipment and work activities. However, monitoring must comply with privacy laws and should be disclosed to employees. Some activities (like recording audio/video in private spaces) may have additional restrictions. Consult legal counsel about specific monitoring practices and privacy rights.

Leave and Benefits Questions

Q: Am I eligible for Oregon paid sick leave as a remote worker?

A: Generally yes, if you work from Oregon and your employer meets the size thresholds (10+ employees statewide, or 6+ if employer has Portland location). Remote workers typically accrue sick time at the same rate as on-site workers (1 hour per 30 hours worked). Eligibility begins after 90 days of employment. See Part 3 for details.

Q: Can I use paid sick leave if my internet goes out and I can’t work?

A: Generally no. Paid sick time under Oregon law may typically be used for health-related needs (yours or family member’s), public health emergencies, or other purposes specified in ORS 653.616. Equipment failures or connectivity issues generally would not qualify unless they’re related to a public health emergency (like emergency evacuation). Check with your employer about other leave options for technical issues.

Q: Am I eligible for Paid Leave Oregon benefits if I work remotely?

A: Generally yes, if you are a covered employee working in Oregon. Paid Leave Oregon typically covers employees who:

  • Are or were employed in Oregon
  • Have earned at least $1,000 in wages in Oregon in a recent base year
  • Meet other eligibility requirements

Remote work location within Oregon generally makes you eligible. For specific eligibility questions, contact Paid Leave Oregon at 833-854-0166 or visit https://paidleave.oregon.gov.

Classification Questions

Q: Can my employer classify me as an independent contractor if I work from home?

A: Work location (home vs. office) is generally NOT determinative of worker classification. Classification depends on multiple factors examining the actual work relationship, including control over work, economic dependence, and other elements. Working from home alone does not make someone an independent contractor. Misclassification can have serious consequences. See Part 4 for detailed information, and consult legal counsel or Oregon Employment Department if you have classification questions.

Q: How do I know if I’m properly classified?

A: Classification depends on applying specific legal tests to your work situation. Oregon uses different tests for different purposes (unemployment insurance, tax, wage and hour). Consider factors like:

  • Who controls how, when, and where you work
  • Whether you work for multiple clients
  • Whether you have your own business infrastructure
  • Whether you bear financial risk
  • Whether work is integral to the employer’s business

If uncertain, consult Oregon Employment Department (503-947-1488), Oregon Department of Revenue (503-378-4988), or employment attorney. Don’t rely solely on what your employer calls you or what tax forms you receive.

Workers’ Compensation Questions

Q: Am I covered by workers’ compensation if I’m injured while working from home?

A: It depends on the specific facts and circumstances. Oregon workers’ compensation typically covers injuries that arise out of and occur in the course of employment. For remote workers, factors that may be considered include:

  • Whether you were engaged in work activity when injured
  • Whether injury occurred in designated work area
  • Whether injury occurred during work hours
  • Connection between injury and job duties

Coverage determinations are fact-specific and made by the Oregon Workers’ Compensation Division or your employer’s insurer. If injured, report to your employer immediately and file a claim. Let the official process determine coverage. See Part 4 for more information.

Q: What should I do if I’m injured while working from home?

A: Take these steps immediately:

  1. Seek appropriate medical care if needed
  2. Report the injury to your employer right away (delay can affect your claim)
  3. Complete workers’ compensation claim form (Form 801) with employer’s assistance
  4. Follow up with your employer’s insurer
  5. Keep records of medical treatment and communications

Do not assume you’re not covered. Let the official claims process make that determination. For questions, contact Oregon Workers’ Compensation Division at 800-452-0288.

Tax Questions

Q: Do I pay Oregon income tax if I work remotely from Oregon for an out-of-state company?

A: Generally yes. Oregon typically taxes income of Oregon residents regardless of where the employer is located. If you are an Oregon resident working remotely from Oregon, you generally pay Oregon income tax on that income. Your employer should generally withhold Oregon income tax. For specific tax situations, consult a tax professional or Oregon Department of Revenue at 503-378-4988.

Q: What if I live in Washington and work remotely for an Oregon company?

A: This situation may involve both states’ tax rules:

  • Washington has no state income tax on wages
  • Oregon generally taxes income based on where work is performed
  • If you physically work from Washington, the income is generally not Oregon-source income
  • However, verify your employer is withholding correctly

Consult tax professional for multi-state tax situations. Oregon and Washington have specific rules for cross-border workers.

Compliance Questions

Q: Does my employer need to register in Oregon if they hire one remote worker here?

A: Generally yes. Employers with even one employee performing work in Oregon typically must:

  • Register with Oregon Department of Revenue for income tax withholding
  • Register with Oregon Employment Department for unemployment insurance
  • Obtain workers’ compensation coverage
  • Comply with Oregon employment laws (minimum wage, sick leave, etc.)

Requirements vary slightly by agency. Employers should consult Oregon agencies or legal counsel when hiring first Oregon-based employee.

Q: What workplace posters must be displayed for remote workers?

A: Oregon requires various employment law posters. For remote workers, employers may:

  • Provide electronic copies of required posters
  • Email posters to remote workers
  • Make posters accessible on company intranet
  • Mail printed posters to remote workers

Required posters include minimum wage, sick time, workers’ compensation, equal opportunity, and others. All posters available at: https://www.oregon.gov/boli/employers/pages/required-posters.aspx

Oregon has not established different poster requirements specifically for remote workers.

Others

Washington
California
Idaho
Colorado
Nevada

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.