Oregon Bill HB 4094 requires employers to pay out unused paid time off upon termination according to final wage timelines

Original title: Requires employers that provide, by written policy or employment contract, for the payment of earned or accrued but unused paid time off upon termination to make such payments in accordance with statutory requirements governing final wages.

Last action · March 6, 2026: In committee upon adjournment.Sponsors: Travis Nelson and 17 others

Bill progressHistory & official text ↓

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What This Bill Proposed

Official description

Digest: This Act makes laws about payouts for certain unused paid time off. (Flesch Readability Score: 81.8). [<i>Requires employers who provide paid vacation time to compensate employees for all earned or accrued but unused paid vacation time when employment terminates.</i>] <b>Requires employers that provide, by written policy or employment contract, for the payment of earned or accrued but unused paid time off upon termination to make such payments in accordance with statutory requirements governing final wages.</b> Takes effect on the 91st day following adjournment sine die.

Background

Oregon labor laws strictly regulate when employers must disburse final wages to discharged or quitting workers under ORS 652.140. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Employees

Workers who leave employment are guaranteed to receive payouts for earned and unused paid time off according to statutory final wage schedules, provided their employer has a written policy or contract offering such benefits.

Directly affected

Employers

Employers offering paid time off via contract or written policy must disburse unused balances upon termination within strict legal deadlines set for final wages.

Key Facts

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Frequently Asked Questions

When must an employer pay out unused paid time off under this bill?

Employers must pay out earned, unused paid time off at the same time and in the manner required for final wages under ORS 652.140, which depends on whether the employee was discharged, quit with notice, or quit without notice.

Does this requirement apply if a business is sold to a new owner?

No, the requirement does not apply during a business sale if the purchaser continues the employee's employment and credits them with all earned but unused accrued leave on their first day of continued employment.

Are workers covered by collective bargaining agreements affected?

No, the statute does not apply to employment where a otherwise provides for the payment of wages upon termination.

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Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

8 actions

Mar 6, 2026House
In committee upon adjournment.
Feb 18, 2026House
Referred to Ways and Means by order of Speaker.
Feb 18, 2026House
Recommendation: Do pass with amendments, be printed A-Engrossed, and be referred to Ways and Means.
Feb 16, 2026House
Work Session held.
Feb 4, 2026House
Public Hearing held.
Feb 4, 2026House
Public Hearing scheduled.

Show 2 earlier actions

Feb 2, 2026House
Referred to Labor and Workforce Development.
Feb 2, 2026House
First reading. Referred to Speaker's desk.

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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