Oregon
Make employment in Oregon easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Oregon, all in one easy-to-use platform.
- Capital City
Salem
- Currency
United States Dollar ($, USD)
- Population size
4,200,000
Facts & Stats
- Capital City
Salem
- Currency
United States Dollar ($, USD)
- Population size
4,200,000
- VAT - standard rate
N/A
From the rugged coastline of the Pacific to the vibrant, eclectic neighborhoods of Portland, Oregon effortlessly harmonizes natural wonder with a creative, pioneering spirit.
With a thriving tech sector, outdoor recreational opportunities, and a welcoming community, it’s an attractive destination for both job seekers and employers alike.
Grow your team in Oregon with Remote
If you want to hire in Oregon, you’ll need to own a legal entity there — or partner with a global employment solutions provider, like Remote.
We can employ top talent in Oregon on your behalf and manage complex HR tasks such as onboarding, payroll, benefits, and taxes. You can also manage and pay your contractors in Oregon through Remote.
Risks of misclassification
Oregon, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Oregon may lead to fines and penalties for the offending company.
Employing in 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.
Hours of work in Oregon
Work and overtime laws in Oregon are governed by the state’s Bureau of Labor & Industries (BOLI).
What is considered full-time employment in Oregon?
Full-time employment is generally considered to be between 30 and 40 hours per week, although this is not defined by law.
Do salary employees get overtime in Oregon?
Under the federal Fair Labor Standards Act, non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.
Employees are generally (but not always) exempt from overtime if they:
Earn more than the specified state or federal exemption threshold
Perform a role with duties that are considered executive or managerial
Work in a certified or licensed profession, such as law, accounting, architecture, or engineering
In Oregon, the salary threshold for exemption is currently $684 per week, which is the federal minimum.
Note that the federal salary threshold for exemption is currently being reviewed in the US.
Minimum wage in Oregon
The minimum hourly wage for private sector employees is currently $14.25 per hour, although this is expected to increase in July 2024.
Note that the minimum wage is slightly higher in Portland ($15.45) and slightly lower in non-urban counties ($13.20).
Onboarding timeline in Oregon
We can help you get your new employee started in Oregon fast, with a minimum onboarding time (MOT) of just 2 working days. Note that the MOT is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Remote platform.
For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.
Please note that payroll cut-off dates can impact the actual first day of employment. Remote’s payroll cut-off date is the 10th of the month, unless otherwise specified.
Payroll cycle in Oregon
Under state law, employees must be paid at least once per month.
For Remote customers, employee payments are made twice per month in equal installments, payable in arrears. The first payment is made on the 15th of the month and the second payment is made on the final day of the month. If relevant, bonus payments, commissions, and expense reimbursements are included in the second payment of the cycle.
Effortless HR Oregon: Take the Tour
Competitive benefits in Oregon
Remote can help you craft a competitive benefits package to attract and retain the best global talent. Our benefits experts understand the trends, requirements, and expectations of Oregon's labor market, allowing your employees to feel appreciated and thrive.
Our benefits packages in Oregon usually include some or all of the following:
Pension or 401(K)
Medical Insurance
Vision Insurance
Dental Insurance
Life Insurance
Health Saving Plan (HSA)
Long term disability insurance (LTD)
Flexible Spending Account (FSA)
Are employers required to provide health insurance in Oregon?
Under the federal Affordable Care Act, organizations with a headcount of 50 or more must offer statutory health insurance to their full-time employees.
Many employers also offer some level of supplemental health insurance. While this can lead to a relative rise in employment costs, it’s an essential benefit that ensures your people have access to routine care and are covered in the event of an emergency.
Because Remote is the employer of record (EOR), it’s important for us to offer the same core benefits to all employees to ensure fair and non-discriminatory hiring practices. This protects both your business and ours.
Note that we do not add a markup on any benefits premiums or administration costs.
Are employers required to offer 401k in Oregon?
Yes. Organizations must offer a retirement plan to their employees. You can either choose your own qualified savings plan, or enroll your employees into the state-sponsored OregonSaves Program.
Failure to provide a qualified plan can result in a fine of up to $100 per employee, per year.
Taxes in Oregon
Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Oregon.
Note that your employees may be liable for additional local taxes in certain areas.
Employer taxes
Employment Tax | |
|---|---|
6% | Federal unemployment insurance tax (FUTA) (charged on the first $7,000 an employee earns per year) |
0.7% to 5.4% | State unemployment insurance tax (SUTA) |
6.2% | FICA (Social security) |
1.45% | FICA (Medicare) |
Employee taxes
Payroll Tax | |
|---|---|
10% to 37% | Federal income tax |
4.7% to 9.9% | State income tax |
6.2% | FICA (Social security) |
1.45% | FICA (Medicare) |
Types of leave in
Vacation | In Oregon, there is no state or federal law that requires employers to provide paid or unpaid vacation leave to their employees, although most organizations do. |
Sick leave | Under state law, companies with 10 or more employees must provide one hour of paid sick leave for every 30 hours worked. Companies with fewer than 10 employees must provide one hour of unpaid sick leave for every 30 hours worked. Note that for serious health conditions, some employees may be eligible for up to 12 weeks’ paid sick leave. Can an employer deny sick time in Oregon? Under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid sick leave per year, provided they: - Have worked for the same employer for at least 12 months - Work in a location where at least 50 people are employed by the company within a 75-mile radius |
Parental and maternity leave | Employees are entitled to up to 12 weeks of unpaid maternity or paternity leave under the FMLA. Under state law, some employees may also be eligible for up to 12 weeks’ paid family leave. |
Bereavement leave | Under state law, employees are entitled to up to two weeks’ unpaid bereavement leave (provided the company has at least 25 employees). |
Jury duty | Employees must report for jury duty if summoned (unless exempt). Jurors are typically “on call” for two weeks. Do employers have to pay for jury duty in Oregon? No. Private sector employers are not required to pay employees on jury service, but they must provide unpaid leave, and cannot penalize or terminate an employee on jury duty. Some employers provide paid leave. |
Military leave | Under state and federal law, employers must grant unpaid leave to employees who are members of the military or the National Guard for military duty or training. These employees have the right to take time off for their military obligations, and employers are prohibited from discriminating against them based on their military service. Under state law, military spouses are also entitled to 14 days’ unpaid leave if their spouse or same-sex partner is called up to active service. |
Employment termination in Oregon
Termination process
Like nearly all US states, Oregon is an “at-will” state. This means both employers and employees can end the employment relationship without reason, provided it is legal.
Remote’s legal experts can help you navigate terminations to ensure employees are only let go fairly, negating any potential legal complications.
Notice period
Employers and employees are not required to provide notice of termination, unless otherwise stated in the employment contract.
Despite this, it's usually customary for employees to provide two weeks' notice when leaving an organization.
Severance pay
Employers are not legally required to provide severance pay (unless it is stipulated in the employee's contract or in the company policy).
Employers are also not required to pay any accrued but unused vacation time, unless stipulated in the employment agreement.
Probation periods
There is no requirement to provide a probation period for employees, although many companies implement internal probation policies. These policies typically involve a formal performance evaluation after a specified period, such as three or six months.