ORS 652.140
Payment of wages on termination of employment

  • exception for collective bargaining


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.


(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.


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.


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.


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.


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.


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


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:


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


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)

§§ 652.110 to 652.405

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 to 652.405 when to do so would render provisions of ORS 652.110 to 652.250 superfluous. Stout v. Citicorp Industrial Credit, Inc., 102 Or App 637, 796 P2d 373 (1990), Sup Ct review denied


Last accessed
Jun. 26, 2021