WATCH FOR PROPOSED AMENDMENT.
HB 4094 – Requires employers who provide paid vacation time to compensate employees for all earned or accrued but unused paid vacation time when employment terminates.
EMAIL COMMITTEE AND LEGISLATORS.
Key Provisions:
- Mandatory payout: Employers must compensate employees at 100% of their regular pay rate for all earned/accrued but unused paid vacation time when employment ends, following the same timeline as final wages under ORS 652.140.
- Employer flexibility: Employers can still establish policies for:
- How vacation time is earned or accrued
- How employees request and schedule vacation
- Use-it-or-lose-it deadlines (with 90-day notice and reasonable opportunity to use time before forfeiture)
- Amendment to wage law: Final wages now explicitly include earned/accrued unused paid vacation time (except in business sale scenarios where the new employer credits the time).
- Effective date: The law applies to vacation time earned on or after 91 days following the legislative session’s adjournment, and to contracts entered/renewed after that date.
The bill essentially makes it illegal for Oregon employers to allow employees notto take vacation and not get compenated for the benefit when terminating.
Exemptions are:
- Employment covered by collective bargaining agreements that provide otherwise for payment of wages upon termination (government aleady pays out vacation time)
- Business sales where the new employer credits the accrued vacation time.