The Top 10 Employment Law Changes From the 2025 Oregon Legislative Session

Summary

Oregon employers must once again be ready to comply with a slate of new legislative changes from the Oregon Legislature’s recent session, which concluded on June 27, 2025. These new laws make changes to Paid Leave Oregon and the Oregon Family Leave Act, impose new limits on hiring practices and require paycheck disclosures, expand paid sick time and unemployment insurance benefits, and increase the statute of limitations for discrimination charges dismissed by Oregon’s Bureau of Labor and Industries (BOLI). With some laws already effective in June 2025, every Oregon employer should familiarize itself with these changes.

The Upshot

• Effective January 1, 2026, employers must provide new detailed information to help employees interpret their pay statements, including describing all pay and deduction codes.
• Striking workers can now receive up to 10 weeks of unemployment benefits during a strike, potentially impacting union negotiations.
• Employees will have a longer period to file a lawsuit in state court after BOLI dismisses a complaint.
• Employers will need to update their PLO, OFLA, and paid sick time policies and practices. Some changes—such as PLO benefit disclosures to employers and the allowance of fitness for duty certifications—will make it easier for employers to administer their leave of absence policies.
• BOLI will expand to include an Employer Assistance Division that will provide interpretive guidance and advisory opinions; and BOLI will enforce PLO job protection and retaliation provisions.

The Bottom Line

With so many changes to Oregon’s employment laws, employers must make a habit of updating their policies, procedures, and practices on a regular basis.

To learn more about the latest federal, state, and local legal developments affecting employers, be sure to join us at our annual Best Practices for Best Employers Labor and Employment seminars in Portland (September 10, 2025) and Seattle (October 15, 2025), or purchase the recording available in November.

Unemployment Insurance Benefits For Striking Workers

Effective January 1, 2026, employees who do not work due to a labor strike may now qualify for unemployment insurance benefits on a limited basis. Workers cannot receive benefits during the first two weeks of a strike but may receive up to 10 weeks of benefits thereafter. Individuals must pay back benefits if the employer later issues back pay. This may have some unintended consequences for labor negotiations.

Washington recently passed a similar law. See our recent Legal Alert on legal developments in Washington employment.

New Paycheck Information Requirements

Starting January 1, 2026, Oregon employers must provide employees with information to help them understand their pay statements. Specifically, employers must provide newly hired employees with a written explanation of the earnings and deduction codes that will be on their required itemized pay statements. The explanation must include:

• The employer’s established regular pay period;
• A list of all pay rates that the employee may be eligible for (including shift differentials, piece-rate pay, and commission-based pay);
• Allowances, if any, claimed as part of minimum wage;
• A list of all benefit deductions and contributions, and all other deductions that might apply, and their purpose;
• Employer-provided benefits that might appear on the itemized statements; and
• An explanation of all payroll codes used for pay rates and deductions, along with a detailed description or definition of each.

This information must be updated at least every January 1. Employers can satisfy this obligation through a website, a physical document posted in a central location, a shared electronic file, or delivery by electronic mail.

Compliance Tip: As the end of the year approaches, employers should determine how they will comply with this law and prepare the required notice. This is also a good opportunity to audit current pay statement practices. Employers should ensure they are providing required information every pay period and are consistently and correctly using pay and deduction codes. Employers should consider consulting with legal counsel before beginning any audit.

Extended Deadline to File a Lawsuit in State Court Following BOLI Dismissal of Complaint

Effective June 24, 2025, individuals who file complaints with BOLI will be afforded up to one year to file a lawsuit in state court following receipt BOLI’s decision or a right to sue notice. Specifically, BOLI must provide complainants with notice of the right to sue on the earlier of (a) either the dismissal of a complaint (except if the dismissal due to a civil action being filed), or (b) the one-year anniversary of the filing date. BOLI’s right to sue notice must include the deadline for filing suit in state court; this deadline is determined as follows:

• If BOLI investigates and finds substantial evidence of a violation, or has not completed an investigation as of the date of the notice, the deadline for filing suit in state court will be either (1) 90 days from the date of the notice, if 90 days or less remain in the state statute of limitations, or (2) the date the state statute of limitations expires, whichever is later.
• If BOLI finds no substantial evidence of a violation, the deadline for filing suit in state court will be the later of: (1) one year from the date of the notice, if at least one year remains in the state’s statute of limitations, (2) 90 days from the date of the notice, if 90 days or less remain in the state’s statute of limitations; or (3) the date the state’s statute of limitations expires, if at least 90 days but not more than one year remain in the state’s statute of limitations.

For most claims, the state’s statute of limitations is five years. Accordingly, this law could effectively extend the statute of limitations by up to 15 months for complainants who elect to file a BOLI complaint at the end of the applicable state statute of limitations, depending on how long it takes BOLI to issue the required notice.

Under prior law, complainants had 90 days from the date of BOLI’s dismissal of a complaint to file a lawsuit in state court, regardless of the timing or reason for the dismissal. Individuals who file a complaint with the EEOC still have only 90 days to file suit in federal court upon receiving the EEOC’s right to sue letter.

Employers are now also prohibited from entering into agreements with former, current, or prospective employees that would effectively shortening the statute of limitations for violations under BOLI’s enforcement authority.

Compliance Tip: Employers are encouraged to consult with legal counsel to determine the impact on their organization’s document retention and litigation preservation policies and confirm that all employment agreements comply with this new law.

Restrictions on Age and Graduation Questions During Recruitment

As of September 26, 2025, before completing an initial job interview, employers are prohibited from requesting or requiring applicants to disclose their age, date of birth, or graduation date from any educational institution. If there is no interview, the employer cannot solicit this information before making a conditional job offer. After a conditional job offer is made, this information can be requested as needed to finalize the hiring process. Exceptions exist when the employer needs the information earlier to determine bona fide occupational qualifications or when the employer must solicit this information earlier to comply with local, state, or federal law.

Compliance Tip: Employers should review job applications, postings, recruiting materials, screening questions, and interview processes to ensure compliance. Additionally, recruiting staff and managers conducting job screenings or initial interviews must be educated about these new restrictions.

Paid Leave Oregon Enforcement, Return to Work Certification, and Other Leave and Paid Sick Time-Related Changes

Several changes to PLO, the OFLA, and paid sick time become effective September 26, 2025, including the following:

• Employers can now require that an employee who returns from PLO leave due to their own serious medical condition provide a certification from their health care provider stating that the employee is fit to return to work pursuant to a uniformly applied practice or policy of the employer. Previously, employers could not require a fitness for duty certification before employees returned from PLO leave under any circumstances. Federal Family and Medical Leave Act (FMLA) regulations permit fitness for duty certifications, so this change to state law aligns with the FMLA.
• The PLO benefit amounts paid to employees may be disclosed to employers as needed to allow employers to exercise their authority to limit use of paid time off benefits (e.g., paid sick time, vacation, etc.) to supplement PLO benefits. Access to this information will better enable employers to understand how and when employees using are PLO leave, and assist employers administer concurrent use of paid time off benefits.
• The law was clarified to confirm that paid sick time can be used for any reason that also qualifies for PLO leave. Additionally, effective January 1, 2026, employees may use paid sick time to donate blood, provided that the blood donation program is voluntary and approved or accredited by the American Association of Blood Banks or the American Red Cross.
• All employees based in Oregon who are eligible and meet the hours-of-service requirement under the FMLA leave are now eligible for leave under OFLA. Previously, employees who worked an average of fewer than 25 hours per week in the 180 days prior to commencing OFLA leave were not eligible for OFLA.
• “Child” is defined to mean children under age 18, or over age 18 if the child is substantially limited by a physical or mental impairment for the purposes of qualifying reasons for OFLA leave and Oregon’s paid sick time law.
• Employers cannot require 30 days’ advance notice for using paid sick time for reasons related to the closure of the school or childcare provider of the employee’s child due to a public health emergency unless the Governor’s declaration of the public health emergency was issued at least 30 days before leave commences.

Beginning on January 1, 2026, BOLI – and not the Oregon Employment Department (OED) – will be the enforcement agency responsible for the regulatory oversight and enforcing PLO’s job protection, anti-discrimination, and retaliation provisions. BOLI already enforces laws governing discrimination, harassment, retaliation, and other leave interference. OED will still administer PLO claims for employees whose employers do not have equivalent plans.

Finally, starting January 1, 2026, private insurance companies that administer short-term and long-term disability benefits will no longer be able to require employees to apply for or use PLO benefits. The law does not expressly limit plans from offsetting benefits if an employee applies for PLO and disability insurance benefits for the same period. The law may result in employees having access to income support for weeks beyond their PLO leave, thereby making it more affordable for employees to remain on leave longer.

Compliance Tip: Employers should confirm that their leave and paid sick time policies and practices comply with these amendments. In particular, employers should ensure they are consistently applying their policies regarding fitness for duty certifications from employees who are returning from leave for their own serious health condition. Employers with insured short- and long-term disability policies should discuss these legislative changes with their insurance broker and consider whether to adjust employee benefits offerings in light of these changes.

Lactation Breaks for Agricultural Workers

As of May 7, 2025, lactation breaks must be provided to hand-harvest or pruning laborers who work on a piece rate basis, commute daily to their worksite, and have been employed less than 13 weeks in agriculture in the year prior. These workers were previously excluded from Oregon’s lactation break requirements.

BOLI’s New Employer Assistance Division

Effective September 26, 2025, a new BOLI “Employer Assistance Division,” is established to provide education, training, and interpretive guidance. While BOLI has previously engaged in these activities, this new law also charges this division with issuing “advisory opinions,” similar to the U.S. Department of Labor’s opinion letters. The law includes prohibits employer communications with the Division from being used in any proceeding conducted by BOLI without the employer’s consent and prohibits the division from disclosing a requesting employer’s name to any other regulatory body or division of BOLI. The law also prohibits BOLI from imposing administrative fines on any employer who can prove they relied on the Division’s guidance when making a good-faith employment decision.

Compliance Tip: While this expanded guidance may be a valuable resource for employers as they endeavor to comply with changing state employment laws, several questions remain about the scope of confidentiality for communications with the Division. Employers are encouraged to consult legal counsel before communicating compliance questions to the newly created Division.

New Professional Employer Organizations (PEO) Licensing Requirement

Beginning September 26, 2025, PEO organizations must become licensed as such, including meeting related licensing requirements. PEO organizations are organizations that enter into an agreement with a client employer under which certain employer responsibilities for some or all of the client employer’s workers are allocated between the two entities. Among these new licensing requirements is the obligation to provide workers compensation coverage for employees of the client employer and ensure that the client employer provides proper workplace safety training.

Minimum Wage Increase

On July 1 of every year, Oregon’s minimum wage increases based on the inflation index. As of July 1, 2025, the new minimum hourly rates are:

• $16.30 (Portland Metro) – includes parts of Clackamas, Multnomah, and Washington Counties.
• $15.05 (Standard Rate) – Includes Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, and Yamhill Counties.
• $14.05 (Non-Urban Counties) - Includes Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler Counties.

Employees who are classified as exempt under Oregon law must also be paid the equivalent of 40 hours of work per week at least the applicable state minimum wage for the purposes of meeting the salary basis requirement for most white collar exemptions from overtime compensation. However, since the federal Fair Labor Standards Act (FLSA) sets the salary threshold for exempt status at $35,568—which is greater than the thresholds under state law—employers must comply with federal law.

Compliance Tip: Employers should ensure that all non-exempt employees are being paid at a rate that is equal to or exceeds the state’s minimum wage, and that exempt employees are paid at the applicable salary thresholds. This is also a good time to audit and address compliance with Oregon’s pay equity law that requires employers to justify any pay differences among employees across protected classes. Employers should consult with counsel before undertaking audits that might substantiate wage and hour problems.

Pay Transparency - Gone but not Forgotten?

Notably, legislation did not pass that would have required all Oregon employers to disclose salary information on job postings; this was left on the legislature’s cutting room floor. This was not the first time the Oregon legislature attempted to pass a pay transparency bill. Many states, including neighboring Washington and California, already have transparency laws. Oregon employers should be prepared for a pay transparency bill to be revived. To prepare for future obligations, employers may want to consider conducting a pay equity audit and making a compliance plan for salary disclosures.

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