Do You Have to Pay Out Vacation Time in Oregon?

Vacation Time: An Overview

Vacation time is an important benefit that employers offer to their employees. It provides employees with the opportunity to take time off from work and recharge their batteries.

In Oregon, vacation time is considered a form of earned compensation. This means that if an employee has accrued vacation time, they are entitled to be paid for that time when they leave their job.

Oregon’s Vacation Pay Law

Oregon law requires employers to pay out all earned vacation time when an employee leaves the company. This includes both voluntary and involuntary terminations.

Additionally, if an employer has a policy of providing paid vacation time, they must pay out any unused vacation days as part of the final paycheck.

Exceptions to the Rule

There are some exceptions to Oregon’s vacation pay law. For example, if an employer has a policy that states that vacation time does not accrue or cannot be carried over from year to year, then they may not have to pay out any unused vacation time.

Similarly, if an employee is terminated for misconduct or violation of company policy, the employer may not be required to pay out any accrued vacation time.

Conclusion

In summary, in Oregon employers are required by law to pay out all earned vacation time when an employee leaves the company. If you’re leaving your job and have accrued vacation days, make sure you know your rights and ensure that you receive the compensation you’re entitled to.