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

By Alice Nichols

If you’re an employee in Oregon who is about to quit or get fired, you may be wondering whether your employer has to pay you for any unused vacation time. The answer is not as straightforward as you might think. Let’s dive into the details.

Understanding Oregon’s Laws on Vacation Time

Oregon doesn’t have a law that requires employers to provide vacation time to their employees. However, if an employer does offer vacation time, they must follow certain rules. One of these rules is that any earned vacation time must be considered wages and paid out to the employee upon separation from the company.

What Constitutes Separation from the Company?

Separation from a company can occur in many ways, including resignation, layoff, termination with or without cause, and completion of a contract. Regardless of the reason for separation, if an employee has unused vacation time at the time of separation, they are entitled to be paid for that time.

Are There Any Exceptions?

There are a few exceptions to this rule. For example, if an employer has a policy stating that vacation time will not be paid out upon separation or that it will only be paid out under certain circumstances (such as retirement), then they may not have to pay out unused vacation time. However, this policy must be clearly communicated to employees in writing before they start accruing vacation time.

What If My Employer Refuses to Pay Out My Vacation Time?

If your employer refuses to pay out your earned vacation time upon separation and you believe they are breaking Oregon’s laws on wages and hours, you can file a complaint with the Bureau of Labor and Industries (BOLI). BOLI will investigate your claim and determine whether your employer owes you any unpaid wages.

Conclusion

In summary, if you are an employee in Oregon who has earned vacation time, you are entitled to be paid for any unused time upon separation from your employer. However, there are exceptions to this rule, so it’s important to check your company’s policies and consult with legal counsel if necessary. And if your employer refuses to pay out your vacation time, you have the right to file a complaint with BOLI.