2015 ORS 652.140¹
Payment of wages on termination of employment
  • exception for collective bargaining

(1) When an employer discharges an employee or when employment is terminated by mutual agreement, all wages earned and unpaid at the time of the discharge or termination become due and payable not later than the end of the first business day after the discharge or termination.

(2)(a) When an employee who does not have a contract for a definite period quits employment, all wages earned and unpaid at the time of quitting become due and payable immediately if the employee has given to the employer not less than 48 hours’ notice, excluding Saturdays, Sundays and holidays, of intention to quit employment.

(b) Except as provided in paragraph (c) of this subsection, if the employee has not given to the employer the notice described in paragraph (a) of this subsection, the wages become due and payable within five days, excluding Saturdays, Sundays and holidays, after the employee has quit, or at the next regularly scheduled payday after the employee has quit, whichever event first occurs.

(c) If the employee has not given to the employer the notice described in paragraph (a) of this subsection and if the employee is regularly required to submit time records to the employer to enable the employer to determine the wages due the employee, within five days after the employee has quit the employer shall pay the employee the wages the employer estimates are due and payable. Within five days after the employee has submitted the time records, all wages earned and unpaid become due and payable.

(3) For the purpose of this section, if employment termination occurs on a Saturday, Sunday or holiday, all wages earned and unpaid shall be paid no later than the end of the first business day after the employment termination, except that if the employment is related to activities authorized under ORS chapter 565, all wages earned and unpaid shall be paid no later than the end of the second business day after the employment termination.

(4) The employer shall forward such wages by mail to any address designated by the employee if the employee requests the employer so to do. An employer may deposit such wages without discount in the employee’s account in a financial institution, as defined in ORS 706.008 (Additional definitions for Bank Act), in this state, provided the employee and the employer have agreed to such deposit.

(5) This section does not apply to employment for which a collective bargaining agreement otherwise provides for the payment of wages upon termination of employment.

(6) When a termination of employment results from the sale of a business or business property and the purchaser employs or continues the employment of an individual employed at the business, this section does not apply to the payment to such an individual of wages for earned but unused accrued holiday leave, sick leave, vacation leave or other leave benefits payable upon termination of employment pursuant to a collective bargaining or other employment agreement or employer policy, if the following conditions are met:

(a) On the first day of such an individual’s continued employment the purchaser of the business credits the individual with all such earned but unused accrued leave; and

(b) The leave, when used, is paid at a rate not less than the rate at which the leave was earned or, if paid at a lesser rate, the number of hours credited is increased to compensate the individual for any difference. [Amended by 1957 c.242 §1; 1975 c.192 §1; 1991 c.966 §1; 1995 c.753 §1; 1997 c.233 §1; 1999 c.59 §192; 2005 c.664 §1]

Notes of Decisions

Where employ­ment contract between defendant and plaintiff did not contain condi­tion for pay­ment of wages, this sec­tion did not permit an employer to withhold wages for any work employer determined was inadequately performed. Schulstad v. Hudson Oil Co., 55 Or App 323, 637 P2d 1334 (1981), Sup Ct review denied

Where wages were withheld from employes pursuant to wage reduc­tion agree­ment on condi­tion they would be repaid when market condi­tions improved to allow payback from profits, withheld wages were not "due and payable" on termina­tion of employ­ment when market condi­tions, at that time, had not improved as re­quired by condi­tion. State ex rel Roberts v. Duco-Lam, Inc., 72 Or App 473, 696 P2d 561 (1985), Sup Ct review denied

Where overtime work was not authorized by employer, plaintiff could not claim overtime wages. Leonard v. Arrow-Tualatin, Inc., 76 Or App 120, 708 P2d 630 (1985)

Where employe was discharged from employ­ment, wages were due and payable on date of discharge and fact that employe did not pick them up immediately did not waive right to them on demand. Emery v. Portland Typewriter & Office Machine, 86 Or App 635, 740 P2d 218 (1987)

Employ­ment Rela­tions Board's jurisdic­tion over wage claims arising from public employees' arbitra­tion award was primary, even if not exclusive, and issues of whether arbitra­tion award was final and binding and whether employer refused or failed to comply with any pro­vi­sion of it were issues for board in first instance, so although not entirely without jurisdic­tion over dispute, circuit court should have abated claims until Employ­ment Rela­tions Board issued order for circuit court to enforce. Tracy v. Lane County, 305 Or 378, 752 P2d 300 (1988)

Employer remedy for miscon­duct of employee must be by separate ac­tion for damages, not offset against wages due. Miller v. C.C. Meisel Co., Inc., 183 Or App 148, 51 P3d 650 (2002)

Collective bargaining agree­ment "otherwise provides" for pay­ment of wages upon termina­tion of employ­ment only if agree­ment af­firm­a­tively provides different wage pay­ment require­ment applicable to employee's termina­tion. Smoldt v. Henkels & McCoy, Inc., 334 Or 507, 53 P3d 443 (2002)

Where sale of business results in termina­tion of employ­ment under seller, notwithstanding that individual continues in employ­ment under purchaser, sale imposes duty to accelerate pay­ment of wages other than wages specifically exempted by this sec­tion from accelera­tion. Wilson v. Smurfit Newsprint Corp., 197 Or App 648, 107 P3d 61 (2005), Sup Ct review denied

Where decedent, who was employee of defendant company, died in truck accident while on job, decedent did not "quit" as used in this sec­tion because term implies inten­tional and voluntary act of leaving employ­ment. Loucks v. Beaver Valley's Back Yard Garden Products, 274 Or App 732, 362 P3d 277 (2015)

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 (2015) (last ac­cessed Jul. 16, 2016).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2015, Chapter 652, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano652.­html (2015) (last ac­cessed Jul. 16, 2016).
 
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.