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Paying Terminated Employees in Oregon

Filed under Managing the Workplace. Fact checked on May 30, 2012.

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Employers in Oregon must comply with these state requirements when making the final wage payment to terminated employees.

In Oregon, when an employee is discharged or when employment is terminated by mutual agreement, all wages earned and unpaid at the time of the discharge must be paid no later than the end of the first business day after the discharge or termination.

This does not apply to employment where a collective bargaining agreement provides for the method of payment of wages upon termination of employment.

When an employee without a contract for a definite period quits and gives the employer not less than 48 hours' notice of an intention to quit (excluding Saturdays, Sundays and holidays), all wages earned and unpaid at the time of quitting must be paid immediately.

If the employee does not notify the employer of an intention to quit, wages must be paid within five days after the employee quits (excluding Saturdays, Sundays and holidays), or at the next regularly scheduled payday after the employee quits, whichever comes first.

If an employment termination occurs on a Saturday, Sunday or holiday, payment of wages must be made no later than the first business day after the employment is terminated.

If the employment is related to activities dealing with employment at fairs and exhibits and an employment termination occurs on a Saturday, Sunday or a holiday, payment of wages is made immediately if made no later than the second business day after the employment termination.

Wages may be mailed to any address designated by the employee if requested by the employee.

If an employee has authorized direct deposit into a bank, credit union or savings and loan association, wages earned and unpaid at the time of termination may be directly deposited.

If an employer willfully fails to pay any wages or compensation to an employee whose employment ceases, the wages or compensation of the employee continue from the due date until paid or until an action for payment is commenced. However, wages or compensation may not continue for more than 30 days from the due date. The employer may avoid liability for the penalty by showing a financial inability to pay the wages or compensation at the time they accrued.

Strikers must be paid any wages earned and unpaid on the next regular payday or within 30 days after commencement of the strike. In the case of a dispute over the amount owed in wages, payment of the conceded amount is due within the required period.

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