Business Lawyers Blog
As we approach 2025, several new employment laws in Oregon will significantly impact workplace policies and operations. These changes address a range of topics, from wage requirements to worker classification and family leave. Below is a summary of the most important updates that Oregon employers should be aware of, ranked from most to least significant.
1. Paid Family and Medical Leave Expansion
Effective January 1, 2025, Oregon’s Paid Family and Medical Leave Insurance (PFMLI) Program will undergo significant updates. These include increases in the maximum weekly benefit for employees and broader eligibility for part-time and seasonal workers. Strengthened anti-retaliation protections will also be introduced, ensuring that employees returning from leave are protected, and that job reinstatement rights are clearer.
Employer Action:
- Review and update leave policies to reflect the expanded PFMLI provisions.
- Ensure payroll systems are updated to comply with revised contribution rates and benefit calculations.
2. Minimum Wage Increases
Oregon’s minimum wage will adjust again, with specific rates varying by region due to cost-of-living differences. This adjustment follows Oregon’s ORS 653.025 law, which mandates annual minimum wage increases tied to inflation.
Starting July 1, 2025, the new rates will be:
- Portland Metro: $16.00 per hour
- Standard Counties: $14.50 per hour
- Nonurban Counties: $13.50 per hour
What This Means for Employers:
- Update payroll systems to reflect new regional minimum wage rates.
- Communicate these changes to employees and ensure compliance in all locations.
3. Worker Classification and the Gig Economy
The Oregon Bureau of Labor and Industries (BOLI) will issue new guidelines under ORS 670.600, which sets the legal standards for distinguishing between independent contractors and employees. This is part of Oregon’s broader focus on protecting gig economy workers by ensuring they receive benefits like minimum wage and overtime pay.
Employer Action:
- Conduct a workforce audit to ensure compliance with classification rules under ORS 670.600.
- Update contracts and employment agreements to reflect the clarified guidelines and avoid misclassification penalties.
4. Overtime Laws for Agriculture and Manufacturing
Incremental changes to House Bill 4002 (Agricultural Overtime Law) will take effect, gradually reducing the number of hours agricultural workers can work before being entitled to overtime pay. These changes aim to align Oregon’s rules with the Fair Labor Standards Act (FLSA), while accounting for the specific needs of industries like agriculture and manufacturing.
What Employers Should Do:
- Review scheduling and payroll practices in industries affected by the new overtime thresholds.
- Monitor employee hours closely to ensure compliance.
5. Workplace Safety Regulations
Oregon’s Occupational Safety and Health Administration (OSHA) will introduce new safety regulations, impacting high-risk industries such as construction, manufacturing, and healthcare. Under the Oregon Safe Employment Act (ORS 654.001), these regulations will include stricter enforcement measures and expanded employee training requirements to reduce workplace hazards.
Employer Takeaway:
- Conduct regular safety audits to ensure compliance with new OSHA
- Provide updated safety training to employees and maintain proper documentation of all safety protocols.
Preparing for 2025
These legal updates reflect Oregon’s ongoing efforts to strengthen worker protections, ensure wage fairness, and improve workplace safety. Employers should act now to update their policies, payroll systems, and employee classifications to ensure full compliance with these laws.
For more guidance on how these changes may affect your business, contact Structure Law Group, LLP at (503) 388-3000 or reach out to us online for expert legal guidance on employment matters.