Does Your Employer Have to Pay You for Unused Vacation Time in Oregon?

By Robert Palmer

Are you an employee in Oregon wondering if your employer is required to pay you for any unused vacation time? The answer, as with most legal questions, is: it depends. Let’s dive into the details.

Understanding Oregon Law on Vacation Pay

In Oregon, there is no state law that requires employers to provide paid vacation time to their employees. However, if an employer does offer vacation pay, it must comply with certain regulations set by the state.

Is Vacation Time Considered Earned Wages?

Yes, according to Oregon law, vacation time is considered earned wages. This means that any accrued but unused vacation time must be paid out to the employee upon termination of employment.

What If I Resign?

If you resign from your job and have unused vacation time, your employer is not required by law to pay you for it. It’s important to check with your employer’s policies and procedures regarding unused vacation time.

What About Carryover Vacation Time?

Some employers allow employees to carry over unused vacation time from one year into the next. If this is the case, the employer must pay out any accrued but unused vacation time at the end of employment.

Oregon Law on PTO (Paid Time Off)

PTO (Paid Time Off) is a type of benefit that combines sick leave, vacation time, and personal days into one bank of hours that an employee can use for any reason. In Oregon, PTO is considered earned wages just like vacation time.

Is My Employer Required to Provide PTO?

No, there is no law in Oregon that requires employers to provide PTO. However, if an employer does offer PTO as a benefit to its employees, it must follow certain regulations set by the state.

What Happens to Unused PTO?

In Oregon, employers are not required to pay out unused PTO to employees upon termination of employment. However, the employer’s policies and procedures regarding unused PTO should be clearly outlined in its employee handbook or other written policies.

Conclusion

While Oregon law does not require employers to provide paid vacation time or PTO, any accrued but unused vacation time or PTO is considered earned wages and must be paid out upon termination of employment. It’s important for employees to familiarize themselves with their employer’s policies and procedures regarding vacation time and PTO to avoid any confusion or misunderstandings.