Final Paycheck Laws and Penalty Wages in Oregon
Oregon wage and hour law sets very specific time lines when all wages are due. Late Pay Page. While there are a few minor exceptions regarding when final paychecks (wages) are due, they rarely apply. ORS 652.140. Oregon wage and hour law sets the following basic time lines for payment of all final wages/paychecks: (1) When an employer discharges an employee or when employment is terminated by mutual agreement, the final paycheck, including all wages earned and unpaid , become due not later than the end of the first business day after the discharge or termination. (2) When an employee who does not have a contract for a definite period quits employment, the final paycheck, including all wages earned and unpaid at the time you quit, 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. (3) When the employee quits and has not given 48 hours’ notice, the final paycheck, including all wages earned and unpaid, become due within five days, excluding Saturdays, Sundays and holidays.
You are Likely Due Penalty Wages if Your Final Paycheck was Late
Where the employer fails to timely pay all final wages at separation from employment (termination or quit), generally the employee can recover the wages, plus penalty wages. By all wages, the law means everything. For instance, if the employer makes an unlawful deduction during employment, those wages still remain due and must be timely paid at the end of employment. Deduction Page. Also where the employer does not pay for all hours worked, like an off-the-clock situation. Hours Worked. In such situations, the employer did not pay all wages in the final paycheck. Penalty wages are duce only where the failure to pay was willful, but willful does not carry a common meaning. Willful for penalty wages generally means that the employer is free to determine what it will pay, and chooses to pay the final paycheck when it did and in the amount it did. Penalty wages for a late final paycheck are calculated by multiplying the regular hourly rate (could be salary or commissions reduced to hourly rate) for 8 hours per day until paid. There is a maximum of 30 days for the penalty. Thus an employee earning $15 per hour could be due up to $3,600 in penalty wages if his employer failed to pay final wages for 30 days. Under the right circumstances, other damages or penalties could be assessed under either federal or state wage and hour laws. Such as where the employer fails to pay overtime wages, or minimum wages.
Costs and attorney fees
In most situations where the employee wins their case proving that the employer did not timely pay their final paycheck timely, or that the final paycheck did not include all wages, attorney fees and costs are awarded in addition to the amounts owing the employee under Oregon wage and hour law. This makes it possible for the wage and hour attorneys at Schuck Law to take wage claims on a contingent basis essentially being paid to win the wage claim lawsuit for the employee and have the employer pay the fees and costs.
I quit my employment, when must my employer pay my final wages or paycheck?
In Oregon, the wage and hour laws differentiate between whether you provided 48 hours’ notice. The 48 hour period does not include weekends and holidays.
1. If you gave 48 hours’ notice, then Oregon wage and hour law states that your final (last) paycheck or wages are generally due immediately. After this time, Oregon law determines that your final paycheck is late.
2. If you did not give 48 hours’ notice, then Oregon wage and hour law states that your final (last) paycheck or wages are generally due 5 business days after you quit or the next payday, whichever is first. After this time, Oregon law determines that your final paycheck is late.