State Labor Law Guide

Oregon
Labor Laws

What workers in Oregon need to know about minimum wage, overtime, and their rights when an employer has not paid them fairly.

OR OREGON
$14.20+
Minimum Wage
$21.30
Overtime Rate
10 MIN
Paid Rest Break
2 YRS
Claim Deadline
STATE
Governing Law

Minimum Wage & Overtime OR STATE LAW

Oregon sets its own minimum wage under ORS 653.025, and it exceeds the federal floor of $7.25 per hour by a wide margin. Oregon uses a three-tier wage structure based on where employees perform their work. For the period July 1, 2025 through June 30, 2026, the rates are $15.45 per hour in the Portland metro area (within the urban growth boundary), $14.20 per hour in standard counties, and $13.20 per hour in designated non-urban counties. The applicable rate is determined by the physical location where you work, not where your employer is headquartered. Oregon's rates adjust every July 1 based on the Consumer Price Index.

Overtime rules come from the a law named the Fair Labor Standards Act (FLSA), which requires 1.5 times your regular rate for all hours worked beyond 40 in a workweek. At Oregon's standard rate of $14.20, that puts the overtime rate at $21.30 per hour. Oregon does not impose a daily overtime threshold for most private-sector workers, but certain industries such as manufacturing have additional rules. Being paid a salary does not automatically make you exempt. Exemptions require both a qualifying salary level and specific job duties. Many workers in Oregon are misclassified as exempt when their actual day-to-day duties do not meet the legal standard.

Off the Clock Work: Time worked before clocking in, after clocking out, or during any period your employer knew you were working must be compensated. Oregon law requires employers to pay for all hours worked, including time that wasn't formally scheduled, or time that you did not get pre-approval for. If you worked it, you must be paid for it.

Meal & Rest Breaks OR STATE LAW

Oregon provides among the strongest break protections in the country under ORS 653.261 and OAR 839-020-0050. Employers must provide a 30-minute unpaid meal break for any shift of six hours or more. That break must be continuous and uninterrupted, with the employee fully relieved of all duties. If you are required to remain at your workstation, stay on call, or are interrupted for any work-related reason, the entire break period must be paid. Oregon courts have held that even a single minute short of the required 30 minutes can require the employer to compensate the employee for the entire break period.

Oregon also requires employers to provide a paid, uninterrupted 10-minute rest break for every four hours worked. Unlike meal breaks, rest breaks are paid time and cannot be deducted from wages. Employers who make their workers miss these breaks or make them work through them, may owe back wages for all affected time, plus civil penalties.

Second Meal Break: Employees who work shifts of 14 hours or more are entitled to a second 30-minute meal break. This is an Oregon-specific protection that applies on top of the first break requirement and is commonly ignored in industries with long shifts such as healthcare, hospitality, transportation, or construction.

Misclassification & Exemptions COMMON VIOLATION

Labeling a worker as an independent contractor does not determine whether they are entitled to minimum wage, overtime, and break protections. Both the FLSA, and Oregon law look at more than just what the employer calls you. If your employer controls when, where, and how you work, provides equipment or materials, and your work is essential to their core business, you are very likely an employee. Regardless of the contract that you signed or what tax form you received.

The same scrutiny applies to salaried workers classified as exempt executives, administrators, or professionals. Under the FLSA, being an exempt employee means that you have to meet certain rules regarding how much you are paid and the kind of work that you do.

Willful Violations: If your employer knew their pay practices violated the law, you can recover up to 3 years of back wages. Our unpaid overtime attorneys can help you figure out if you could be eligible for additional recovery!

Case Study: The Salon & The Stylist

Take a look at this example. Compare a typical hair salon's relationships with two different types of workers:

The Hairdresser (Often Misclassified)

Even if handed a 1099 tax form, a stylist is legally an employee if the salon sets their schedule, mandates a specific booking software, dictates service prices, requires a uniform, and provides the heavy equipment or backbar products. Because hair cutting is the salon's core business, this worker is protected by minimum wage, overtime, and mandatory rest break laws.

The Shear Sharpener (True Contractor)

In contrast, a specialist who comes in every few weeks to sharpen scissors is a true independent contractor. They set their own rates, choose their own hours, use their own mobile grinding equipment, work for dozens of competing salons, and face a true risk of business profit or loss based on their own independent operations.

The Reality Check: Signing a non-employee contract or agreeing to be paid under the table doesn't change your rights. The law evaluates the actual control the business has over your day-to-day work. You can't legally sign away your federal rights.

Filing a Claim ACT NOW

Oregon workers have multiple ways to recover unpaid wages. Under Oregon's wage statutes, the general limitation is 2 years, with an extra year added on for certain cases where you can prove that the employer intentionally violated the law. The furthest you can go is up to 6 years based on specific scenarions. The clock runs from each paycheck where wages were shorted, not just from the date you left the job, meaning multiple workweeks may have different deadlines running simultaneously. Waiting to get started could cost you money!

Workers can file a wage claim with the Oregon Bureau of Labor and Industries (BOLI) Wage and Hour Division, or bring a private lawsuit directly in state or federal court. Oregon law also prohibits retaliation for filing a wage complaint or asserting your rights. Any action taken against workers by your employer in response to a wage claim is a separate legal violation.

What to Gather: Pay stubs, timesheets, work schedules, offer letters, and any written communications about your hours or pay are all useful. If you do not have records, an attorney can help obtain them through the litigation process. Oregon employers are required to keep payroll records, and failure to maintain them can work in an employee's favor.

The information on this page is provided for general informational purposes only and does not constitute legal advice. Labor laws change, and the specific facts of your situation may affect how the law applies to you. Rates, thresholds, and deadlines referenced here reflect the law as sourced and may have been updated since publication. Always verify current requirements with a qualified employment attorney before taking action.

Think You May Be Owed Back Wages?

Josephson Dunlap reviews wage claims for Oregon workers at no cost. There is no fee unless wages are recovered. A case manager will go through your situation and tell you where you stand.