Oregon’s labor laws have undergone significant updates in 2025, impacting employers and employees across various industries. From wage regulations to workplace accommodations, it’s crucial to stay informed about these changes to ensure compliance and foster a fair working environment.
Minimum Wage Adjustments
Oregon’s minimum wage rates for the period from July 1, 2025, to June 30, 2026, are as follows:
- Portland Metro Area: $16.30 per hour
- Standard Areas: $15.05 per hour
- Non-Urban Counties: $14.05 per hour
These rates are based on the Consumer Price Index and are subject to annual adjustments. Employers must ensure they are paying at least the applicable minimum wage to all employees.
Paid Leave Oregon (PLO) Program
The Paid Leave Oregon program continues to provide wage replacement benefits for eligible employees taking leave for specific reasons. As of 2025, the contribution rate remains at 1%, with employees contributing 60% and employers with 25 or more employees contributing the remaining 40%. Employers must collect and remit these contributions quarterly to the Oregon Department of Revenue.
Lactation Breaks for Agricultural Workers
House Bill 2541, effective May 7, 2025, extends the right to express breast milk in the workplace to certain agricultural employees who were previously excluded. Covered employees have the right to take reasonable rest breaks and access a private location (other than a public restroom) close to their work area to express milk.
Overtime Pay for Agricultural Workers
Starting January 1, 2025, employers are required to pay overtime to agricultural workers after they work 48 hours in one workweek. This change aligns agricultural labor standards with those in other industries, ensuring fair compensation for extended work hours.
Warehouse Worker Protections
House Bill 4127, effective January 1, 2025, introduces new requirements for warehouse distribution centers employing at least 100 non-exempt employees in a single location or 1,000 non-exempt employees statewide. Employers must provide written documentation to each employee, upon request, summarizing any quotas to which the employee is subject, including the quantified number of tasks to be performed and the potential consequences for failing to meet the quota. Employers must also maintain records detailing the quota and work speed data for the 90 days preceding an employee’s request.
Age Discrimination in Hiring
Effective September 26, 2025, House Bill 3187 prohibits prospective employers from inquiring about a candidate’s age, date of birth, or date of graduation from any educational institution prior to completing an initial interview or making a conditional job offer. This measure aims to prevent age discrimination in hiring practices.
Employer Assistance Division
House Bill 2248, effective September 26, 2025, establishes an Employer Assistance Division within the Oregon Bureau of Labor and Industries (BOLI). This division provides education, training, and interpretive guidance to employers seeking to comply with state employment laws. Employers relying on communications from this division in good faith cannot be penalized by BOLI.
Unemployment Benefits for Striking Workers
Senate Bill 916, signed into law on June 24, 2025, allows striking workers to be eligible for up to ten weeks of unemployment benefits during a strike, effective January 1, 2026. Employees must wait one week before becoming eligible for unemployment benefits, subject to a possible limit based on the tax schedule in effect at the time. Benefits must be repaid if the employee later receives back pay that results in an overpayment of benefits.
Workplace Accommodations for Pregnant Employees
Employers with six or more employees are now required to clarify that discrimination against individuals due to medical conditions linked to pregnancy is against the law. This measure enhances protections for pregnant employees and ensures they are treated fairly in the workplace.
Expansion of BOLI’s Enforcement Capacity
The Oregon Bureau of Labor and Industries (BOLI) received an additional $18.7 million in funding for the 2025-2027 biennium, marking a nearly 31% increase from the previous budget. This expansion aims to clear a backlog of cases and enhance the agency’s ability to enforce labor laws effectively. Notably, the wage threshold for investigating wage theft claims has been removed, allowing BOLI to pursue cases regardless of the employee’s earnings.
Conclusion
Staying informed about Oregon’s labor laws is essential for both employers and employees. The 2025 legislative updates introduce significant changes that promote fair treatment, equitable compensation, and a safer working environment. Employers should review and update their policies and practices to ensure compliance with these new regulations. Employees should be aware of their rights under these laws and seek assistance if they believe their rights have been violated.
