ORS 652.110¹
Method of paying employees
  • agreement on method of payment
  • revocation of agreement

(1) A person engaged in any business or enterprise of any kind in this state may not issue, in payment of or as evidence of indebtedness for wages due an employee, any order, check, memorandum or other instrument of indebtedness unless the instrument is negotiable and payable without discount in cash on demand at some bank or other established place of business in the county where the employee lives or works and where a sufficient amount of funds have been provided and are or will be available for the payment of the instrument when due. The person shall, upon presentation and demand, pay the instrument in lawful money of the United States.

(2) This section does not in any way limit or interfere with the right of any employee to accept from any person, as an evidence or acknowledgment of indebtedness for wages due the employee, a negotiable instrument, payable at some future date with interest.

(3) An employer may pay wages without discount through direct deposit of wages due to an employee into the employee’s account in a financial institution, as defined in ORS 706.008 (Additional definitions for Bank Act), in this state.

(4) An employer shall pay wages due to an employee by check upon the written or oral request of the employee.

(5) An employer and an employee may agree that the employer may pay wages through an automated teller machine card, payroll card or other means of electronic transfer if the employee may:

(a) Make an initial withdrawal of the entire amount of net pay without cost to the employee; or

(b) Choose to use another means of payment of wages that involves no cost to the employee.

(6) An agreement described in subsection (5) of this section must be made in the language that the employer principally uses to communicate with the employee.

(7)(a) Except as provided in paragraph (b) of this subsection, to revoke an agreement described in subsection (5) of this section, an employee shall give the employer a written notice of revocation of the agreement. Unless the employer and employee agree otherwise, the agreement is revoked 30 days after the date the notice is received by the employer.

(b) To revoke an agreement described in subsection (5) of this section, an employee who works for an employer as a seasonal farmworker as defined in ORS 652.145 (Payment of wages for seasonal farmworkers) or an employee who is employed in packing, canning, freezing or drying any variety of agricultural crops shall give the employer notice of revocation of the agreement either orally or in writing. Unless the employer and the employee agree otherwise, the agreement is revoked 10 days after the date the notice is received by the employer.

(8) Nothing in this section is intended to limit the rights of an employee or otherwise affect an employee covered by a collective bargaining agreement. [Amended by 1975 c.191 §1; 1999 c.59 §191; 2007 c.546 §1; 2013 c.380 §1]

Notes of Decisions

Where employer was charged with crim­i­nal viola­tion of Massachusetts pay­ment of wages statute for failing to pay discharged employees for their unused vaca­tion time, employer’s policy of paying discharged employees for unused vaca­tion time was not “employee welfare benefits plan” under sec­tion 3 (1) of Employee Retire­ment Income Security Act of 1974 (ERISA) and crim­i­nal ac­tion to enforce that policy is therefore not foreclosed by sec­tion 514 (a) of ERISA. Massachusetts v. Morash, 490 U.S. 107, 109 S. Ct. 1668, 104 L.Ed 98 (1989)

It is unnecessary to imply private right of ac­tion for employee against secured creditor in pos­ses­sion under ORS 652.310 (Definitions of employer and employee) to 652.405 (Disposition of wages collected by commissioner when payment cannot be made to person entitled thereto) when to do so would render pro­vi­sions of ORS 652.110 (Method of paying employees) to 652.250 (Public employee’s wages as affected by absence to engage in search or rescue operation) superfluous. Stout v. Citicorp Industrial Credit, Inc., 102 Or App 637, 796 P2d 373 (1990), Sup Ct review denied

1 Legislative Counsel Committee, CHAPTER 652—Hours; Wages; Wage Claims; Records, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors652.­html (2019) (last ac­cessed May 16, 2020).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2019, Chapter 652, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano652.­html (2019) (last ac­cessed May 16, 2020).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information