Payroll and Benefits Guide - United States - Oregon

United States - Oregon
null

Currency

United States Dollar
null

Capital

Salem
null

Employer Taxes

11.55% – 21.15%

null

Date Format

mm/dd/yyyy
null

Fiscal Year

1 Jan – 31 Dec

Fun Facts

The state animal of Oregon is the beaver. It was chosen as the state animal because of its historical importance to the fur trade and the state’s early economy.

The state of Oregon is home to the deepest lake in the United States, Crater Lake.

The state of Oregon is known for its craft beer industry.

Oregon is the only state with an official state nut, the hazelnut.

Oregon is home to the largest single organism in the world, the Armillaria ostoyae fungus.

Nike, one of the world’s largest athletic shoe and apparel companies, was founded in Oregon.

United-States-Oregon

Contributions

Employee Payroll Tax

Contribution TypeRate
*Workers 2023 Benefit Fund assessment rate1.1 cents per hour worked
FICA Social Security6.20%
FICA Medicare1.45%
Additional tax0.90%

Employer Payroll Tax

Contribution TypeRate
Unemployment Insurance1.2% – 5.4%
Unemployment Insurance2.10%
*Workers 2023 Benefit Fund assessment rate1.1 cents per hour worked
FICA Social Security6.20%
FICA Medicare1.45%
The FUTA0.60% – 6.00%

Payroll

Payroll Cycle

In Oregon, workers receive their wages on scheduled dates as specified in their employment agreement, either twice a month or once a month.

13th Salary

There are no laws requiring 13th salary.

Work Hours and Week

The average workweek consists of 40 hours, or 8 hours per day from Mondays to Fridays.

Overtime

In Oregon, if employees work more than 40 hours in a week, they are entitled to receive overtime pay. The employer is required to compensate them at a rate of 150% of their regular salary for the additional hours worked.

While there is no additional payment for working on weekends or rest days under normal circumstances, if an employer specifically asks an employee to work on these days due to exceptional circumstances, overtime will be paid at 150% of the regular salary rate for the extra hours worked.

United-States-Oregon

Leave

Paid Time Off

There are no specific state laws dictating the amount or payment of vacation time. Instead, it is typically left to the discretion of employers to determine whether to provide paid or unpaid vacation leave. However, employers must ensure that their policies comply with employment regulations and any relevant provisions outlined in collective bargaining agreements.

Public Holidays

There are 11 official holidays in Oregon.

Sick Days

Employers in Oregon commonly adhere to the guidelines set forth by the Family and Medical Leave Act (FMLA). This federal legislation grants eligible employees the entitlement to take up to 12 weeks of unpaid but protected leave per year for specific family and medical reasons. These include maternity leave, serious illnesses affecting the employee, or the need to care for a spouse or child.

Employers with at least ten employees (unpaid if fewer than 10), or employers in large cities with a population of 500,000 or more with at least six employees anywhere in the state (unpaid if fewer than six), have an obligation to offer paid sick and safety leave to their employees. The amount of paid sick leave provided should be one hour for every 30 hours worked, up to a maximum of 40 hours of paid sick leave per year.

Maternity Leave

Many employers typically adhere to the provisions outlined in the Family and Medical Leave Act (FMLA), which grants specific employees the right to take up to 12 weeks of job-protected, unpaid leave per year for qualifying family and medical reasons. Such reasons include maternity leave, serious illnesses, or the need to care for a spouse or child.

Parental Leave

Employers often comply with the Family and Medical Leave Act (FMLA), which allows certain employees to take up to 12 weeks of unpaid, protected leave per year for specific family and medical reasons. These reasons include maternity leave, serious illnesses, or caring for a spouse or child.

Other Leave

apart from the federal law USERRA, there are state laws that offer protection against discrimination for members of the U.S. armed forces, reserves, National Guard, the commissioned corps of the Public Health Service, and any other group designated by the president during times of war or emergency.

For employers with 25 or more employees, there is a requirement to provide eligible employees with up to 14 days of unpaid protected military family leave. This leave is applicable when an employee’s spouse or same-sex domestic partner is called to active duty or is scheduled for leave from deployment during a period of military conflict.

Termination

Termination Process

There is typically no formal “notice period” required by law to terminate an individual employment contract, unless specified in an employment agreement or collective bargaining agreement. The employment relationship is generally considered “at-will,” meaning either the employer or the employee can end the employment without providing notice or a specific reason, as long as it is not unlawful, such as discrimination based on protected categories outlined by law. The Federal Worker Adjustment and Retraining Notification Act (WARN) sets forth requirements for notice in cases of mass dismissals.

However, for executives and highly skilled individuals, their employment contracts often include a “just cause termination” clause. This clause stipulates that the employer can only terminate the employee based on specific grounds listed in the contract, and the parties negotiate the criteria for a “just cause” termination on a case-by-case basis.

Notice Period

In Oregon, the majority of employees are considered “at-will,” which means that either the employer or the employee can end the employment relationship without prior notice. It is not mandatory by law in Oregon for employers to provide payment for unused vacation time upon termination.

Severance Pay

Unless specified in an employment contract or collective bargaining agreement, employers in Oregon are not obligated to provide severance payments to employees upon termination. If employers decide to offer severance, it would typically be based on the terms outlined in the employee’s contract and agreed upon by both parties. In many cases, employers choose to offer severance payments tied to the employee’s length of service. A common practice in Oregon is to provide one week’s pay for each year of service.

Probation Period

Probation Period

There is no specific legal requirement for a formal “trial/probation period” in Oregon. However, it is a common practice among employers to conduct a performance evaluation after an initially agreed-upon period of employment, typically lasting 90 days.

Immigration

Foreign nationals who do not possess permanent resident status or a work visa are not permitted to work in the United States. To hire a foreign national, an employer can submit a petition to the United States Department of Homeland Security/United States Citizenship and Immigration Services (USCIS) to obtain an employment visa on behalf of the prospective employee.

Once the petition is approved, the prospective employee must obtain a “visa stamp” from a U.S. embassy or consulate, except for Canadian citizens who are exempt from this requirement. In order to secure a temporary U.S. work visa, the employer must file a petition with USCIS, and an approved petition is a necessary component of the visa application process.

VAT

Oregon is a zero-rate Sales Tax Rate state.