Employer of Record for Oregon

Guide to Hiring Employees in Oregon

Your guide to hiring employees in Oregon, covering employment and labor laws, payroll, benefits, onboarding and taxes. You can also manage and pay your contractors in Oregon through Playroll.

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Capital City

Salem

Timezone

PST

(

-8

)

Paid Leave

None

Income Tax

4.75% - 9.9%

Employer Tax

8.8%

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How to Hire Employees In Oregon

Hiring in Oregon for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in Oregon:

  • Establishing a local entity: Creating a legal entity in Oregon allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
  • Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with Oregon’s labor laws, helping you hire in Oregon without navigating the complex legal landscape yourself.
  • Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet Oregon’s labor regulations while offering competitive employee benefits.
  • Hiring independent contractors: Hiring independent contractors can be more cost-effective, but Oregon has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in Oregon.

Complying with Oregon specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in Oregon, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Good To Know

Oregon offers a skilled workforce, especially in tech, healthcare, and manufacturing.

Its no-sales-tax policy and strong infrastructure support business growth.

A high quality of life attracts top talent to the state.

Key Things to Know About Hiring in Oregon

Do I need an EIN or Payroll Tax Number to Employ in Oregon?

Yes, to employ workers in Oregon, you are required to obtain both a Federal Employer Identification Number (EIN) and an Oregon Business Identification Number (BIN). A BIN is assigned by the Oregon Department of Revenue and is used for reporting and paying Oregon payroll taxes, including state income tax withholding, unemployment insurance, and other employer-related taxes.

Working Hours in Oregon

A typical workweek is 40 hours

What is considered full-time employment in Oregon?

There is no state-mandated definition of "full-time," this range aligns with both state and federal standards. Full-time employment is generally considered to be working 30 to 40 hours per week. 

Probation Period in Oregon

There is no legally mandated probationary period for employees. However, it is common for employers to implement a probationary period at the start of employment, typically lasting 30, 60, or 90 days.

Labour Laws in Oregon

Minimum Wage in Oregon

Oregon's minimum wage rates are structured based on geographic regions:

  • Portland Metro Area: $15.95 per hour
  • Standard Counties: $14.70 per hour
  • Non-Urban Counties: $13.70 per hour

Oregon Anti-Discrimination Laws

Oregon enforces comprehensive anti-discrimination laws to ensure fair treatment across various domains, including employment, housing, and public accommodations. These laws are designed to protect individuals from discrimination based on specific protected characteristics.

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Onboarding New Hires in Oregon

We can help you get your new employee started in Oregon fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll 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. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll Taxes For Oregon

Oregon does not mandate a specific frequency, employers must establish a regular pay schedule and adhere to it. Employers often choose weekly, bi-weekly, semi-monthly, or monthly payroll cycles, depending on their business needs. 

Looking to grow your team in Oregon?

Stay Compliant: Navigate Oregon’s complex labor laws with ease.

Affordable Solution: Reduce costs with a budget-friendly EOR option.

Top-Tier Benefits: Access competitive Oregon and federal employee benefits for a stronger team.

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Oregon Employment Taxes

Employer Tax Contributions

Employment Tax Type Tax Rate
Unemployment Insurance Tax 0.024
Paid Leave Oregon 0.4% for employers with 25 or more employees.
Federal Unemployment Tax Act (FUTA) As per federal legislation

Employee Payroll Tax Contributions

Employee Payroll Tax Contribution Tax Rate
Federal social security tax As per federal legislation
Federal medicare tax As per federal legislation
Paid leave Oregon 0.006
Statewide Transit Tax 0.001

Tax Due Dates in Oregon

All contributions listed above align with the quarterly Form OQ deadlines.

Pension in Oregon

OregonSaves, launched in 2017, is a state retirement program for private-sector workers without employer plans. Employees are auto-enrolled at 5% (adjustable or opt-out), with post-tax contributions and tax-free withdrawals. Accounts are portable, staying with individuals across jobs.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Oregon tailored to your needs.

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Paid and Unpaid Leave Policies in Oregon

Is vacation leave mandatory in Oregon?

Vacation leave is not mandatory in Oregon. Employers are not required by state law to provide paid or unpaid vacation time to employees.

What are Mandatory Leave Entitlements in Oregon?

Type of Leave Time Period Mandatory Pay Status Eligibility Criteria
Sick Leave 1 hour of sick leave for every 30 hours worked Yes Paid Worked for at least 12 months, 1,250 hours.
Family and Medical Leave (Paid Leave Oregon) 12 weeks of paid family, medical, or safe leave. Yes Paid Employees qualify if they’ve earned at least $1,000 in the previous year.
Oregon Family Leave Act (OFLA) 12 weeks Yes Unpaid Applies to employers with 25 or more employees. Employees must have worked 180 days and at least 25 hours per week.
Domestic Violence, Harassment, Sexual Assault, or Stalking Leave Reasonable Yes Unpaid Available to all employees who are victims or have a family member who is a victim of these crimes.
Military Family Leave Up to 14 days Yes Unpaid Employers with 25+ employees must provide this leave to employees with a spouse or registered domestic partner in the military.
Jury Duty Dependant on trial duration Yes Unpaid Employers are required by law to provide leave for employees summoned to serve on a jury.

Paid Time Off in Oregon

In Oregon, there is no state law requiring employers to provide paid vacation or general Paid Time Off (PTO). However, certain types of leave, such as sick leave and family leave, are mandatory.

Maternity Leave In Oregon

In Oregon, maternity leave is covered under both the Oregon Family Leave Act (OFLA) and the Paid Leave Oregon program, providing eligible employees with unpaid and paid leave options, respectively.

Oregon Family Leave Act (OFLA):

  • Applies to employers with 25 or more employees. Employees must have worked at least 180 days and 25 hours per week before taking leave. OFLA allows leave for pregnancy-related disability before the birth and bonding time after the birth or adoption of a child.
  • Provides up to 12 weeks of unpaid leave per year for various family and medical reasons, including maternity leave.

Paid Leave Oregon:

  • Paid Leave Oregon offers paid family, medical, and safe leave for eligible employees.
  • Employees qualify if they’ve earned at least $1,000 in the previous year. 
  • Up to 12 weeks of paid leave, with an additional 2 weeks available for pregnancy-related medical issues if needed.

Federal Family and Medical Leave Act (FMLA):

  • Covers employers with 50 or more employees.
  • Employees must have worked at least 1,250 hours in the past year to qualify.
  • Provides up to 12 weeks of unpaid leave for maternity and other family or medical needs.

Paternity Leave In Oregon

In Oregon, paternity leave is covered under the Oregon Family Leave Act (OFLA) and the Paid Leave Oregon program, giving new fathers the opportunity to take time off to bond with a newborn or adopted child.

  • New fathers can use OFLA leave within the first 12 months after the child’s birth or adoption.
  • Fathers can use Paid leave Oregon for bonding time with a newborn, newly adopted, or foster child within the first year.

Federal Family and Medical Leave Act (FMLA)

Applies to employers with 50 or more employees. Employees must have worked at least 1,250 hours over the past 12 months to qualify. Up to 12 weeks of unpaid leave per year, including for bonding with a new child.

Sick Leave In Oregon

In Oregon, sick leave is mandatory for most employees, with specific requirements based on employer size. 

  • Employers with 10 or more employees (6 or more in Portland) must provide paid sick leave.
  • Employers with fewer than 10 employees (fewer than 6 in Portland) must still provide sick leave but are not required to pay for it.

Employees accrue 1 hour of sick leave for every 30 hours worked. Maximum 40 hours a year.

Military Leave in Oregon

In Oregon, military leave is protected by both state and federal laws, ensuring that employees who serve in the military or National Guard can take time off without risking their jobs.

Jury Duty in Oregon

Employers are required by law to provide leave for employees summoned to serve on a jury. Oregon law prohibits employers from terminating, disciplining, or retaliating against employees for taking time off to serve on a jury. Employers are not obligated to pay employees during jury duty leave, though some may choose to do so as part of their company policy.

Parental Leave In Oregon

In Oregon, parental leave is covered under both the Oregon Family Leave Act (OFLA) and Paid Leave Oregon, giving parents job-protected leave to care for and bond with a new child. 

It’s Easy To Manage Benefits For Employees In Oregon With Playroll

Benefit Requirements for Employers in Oregon

In Oregon, employers are required to provide certain benefits to employees, ensuring compliance with state and federal laws.

Are employers required to provide health insurance in Oregon?

  • Employers with fewer than 50 full-time equivalent employees are not mandated to provide health insurance but may choose to offer it.
  • Employers with 50 or more full-time equivalent employees are required under the Affordable Care Act to provide health insurance or face potential penalties.

Do part-time employees get benefits in Oregon?

Part-time employees may be eligible for certain benefits, though eligibility and specific offerings depend on the employer's policies and state requirements. 

  • Paid sick leave
  • Family and Medical Leave (Paid Leave Oregon)
  • Workers’ Compensation
  • Unemployment Insurance
  • Retirement Savings 

Are employers required to offer 401k in Oregon?

Employers in Oregon are not required to offer a 401(k) plan specifically. However, employers who do not offer a retirement plan, such as a 401(k), are required to facilitate the OregonSaves program, a state-sponsored retirement savings plan.

Employment Termination Protocols in Oregon

Termination Process in Oregon

Oregon is an at-will employment state, meaning that employers can terminate employees at any time, for any lawful reason, or for no reason at all, unless there’s a contract stating otherwise. Termination cannot be based on illegal reasons, such as discrimination or retaliation, or breach of any employment contract.

Notice Period in Oregon

Oregon does not require employers to provide advance notice before terminating an employee. However, some employers may offer notice as part of their company policy or contracts. For large-scale layoffs (50 or more employees in a 30-day period), the federal WARN Act may apply, requiring 60 days of advance notice for mass layoffs and plant closures.

Severance in Oregon

Oregon does not mandate severance pay for terminated employees. It is typically offered at the discretion of the employer.

Hiring Employees in Oregon with an employer of record

Discuss how an EOR handles onboarding, including setting up compliant employment contracts, registering for taxes, and managing benefits like Oregon's superannuation system (if applicable).

The employer of record is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Oregon's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Oregon's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Oregon's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by [State]'s labor laws, such as health insurance, pension contributions, and statutory leave.

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Employer of Record for Oregon

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FAQS

FAQs About Hiring In Oregon

What is the minimum wage in Oregon?

As of January 1, 2024, Oregon’s minimum wage rates are:

  • $14.20 per hour in the standard area.
  • $15.45 per hour in the Portland metro area.
  • $13.20 per hour in nonurban counties.
  • Applies across all sectors.

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