Hiring New Employees in Oregon: Legal Guidelines for Employers

Develop a clear job description that accurately reflects the position's responsibilities, required qualifications, and essential functions. Ensure the description complies with Oregon employment laws and doesn't contain discriminatory language. This will help avoid potential discrimination claims and ensure you're attracting qualified candidates.

Advertise the position through appropriate channels. Oregon employers must follow equal employment opportunity laws when recruiting. Be aware that Oregon prohibits employers from requesting salary history from applicants and requires pay transparency in job postings for employers with 15+ employees.

Create an application form that complies with Oregon laws. Oregon prohibits employers from asking about criminal history on initial job applications ('Ban the Box' law), inquiring about salary history, or including questions that could be discriminatory based on protected characteristics.

When interviewing candidates, avoid questions related to protected characteristics (race, religion, age, disability, etc.). Oregon law also prohibits asking about criminal history before a conditional job offer, inquiring about salary history, or requiring disclosure of social media passwords.

If conducting background checks, ensure compliance with the Fair Credit Reporting Act (FCRA) and Oregon laws. Oregon follows 'Ban the Box' legislation, prohibiting criminal history inquiries until after a conditional job offer. Obtain written authorization before conducting background checks.

Create a form that complies with both federal FCRA requirements and Oregon state laws. The form should clearly disclose that a background check will be conducted, be in a standalone document, and obtain the applicant's authorization.

Draft an offer letter that includes position details, compensation, start date, employment relationship (at-will unless specified otherwise), and any contingencies (background check, drug testing, etc.). In Oregon, be aware that non-competition agreements require specific notice periods.

If using an employment contract rather than at-will employment, draft a contract that clearly outlines terms of employment, compensation, benefits, duration, termination conditions, and other relevant details. In Oregon, employment is presumed to be at-will unless specified otherwise.

If the position requires access to confidential information, draft an NDA that protects your business interests while complying with Oregon law. The agreement should clearly define what constitutes confidential information and the employee's obligations regarding that information.

If using a non-compete agreement, ensure compliance with Oregon's strict requirements. In Oregon, employers must provide written notice of the non-compete requirement at least two weeks before employment begins or upon a subsequent bona fide advancement. The employee's annual salary and commissions must exceed the median family income for a four-person family (currently around $100,000). Maximum enforcement period is 12 months.

Create an employee handbook that outlines company policies, procedures, and expectations. Include Oregon-specific policies on sick leave (Oregon requires employers with 10+ employees to provide paid sick leave), meal and rest breaks, overtime, final paycheck requirements, and Oregon Family Leave Act provisions.

Prepare forms for employee benefits enrollment. If your company has 25+ employees, be aware of Oregon's retirement savings program (OregonSaves) requirements if you don't offer a qualified retirement plan. Also include information about Oregon's paid family and medical leave insurance program (Paid Leave Oregon) that began in 2023.

Create a form for employees to authorize direct deposit of their paychecks. In Oregon, employers cannot require employees to receive wages via direct deposit; it must be optional unless direct deposit is a condition of hire that was disclosed in writing before employment.

Create a form to collect emergency contact information from the new employee. While not specifically regulated by Oregon law, this is a standard practice for workplace safety and emergency preparedness.

Federal law requires all employers to verify employment eligibility using Form I-9 within 3 business days of hire. The employee must complete Section 1 on or before their first day of work. As the employer, you must complete Section 2 within 3 business days of the employee's start date after physically examining the employee's identity and work authorization documents.

Have the employee complete the federal W-4 form to determine federal income tax withholding. This is required for all new employees and must be kept on file by the employer.

Have the employee complete Oregon's state tax withholding form (OR-W-4). Oregon has its own withholding form that is separate from the federal W-4.

Federal and state law requires employers to report all newly hired and rehired employees to the Oregon Department of Justice's Division of Child Support within 20 days of hire. This information is used primarily for child support enforcement.

All Oregon employers must provide workers' compensation coverage for their employees. Contact the Oregon Workers' Compensation Division or a private insurance carrier to obtain coverage before the employee's first day of work.

Oregon employers must display specific state and federal workplace posters in a conspicuous location. These include posters on minimum wage, family leave, workplace safety, and anti-discrimination laws. The Oregon Bureau of Labor and Industries (BOLI) provides information on required posters.

Ensure your payroll system is set up to comply with Oregon's minimum wage laws (which vary by region), overtime requirements, and payday regulations. Oregon requires employers to establish and maintain regular paydays and provide itemized pay statements.

Provide orientation for the new employee, covering company policies, safety procedures, and Oregon-specific employment laws. Include information on Oregon's sick leave requirements, meal and rest break provisions, and the Oregon Family Leave Act if applicable.

Ensure your sick leave policy complies with Oregon law. Employers with 10+ employees (6+ in Portland) must provide paid sick leave, while smaller employers must provide unpaid sick leave. Employees accrue 1 hour of sick time for every 30 hours worked, up to 40 hours per year.

Ensure compliance with Oregon's meal and rest break requirements. Non-exempt employees must receive a 30-minute unpaid meal break for shifts of 6+ hours and paid 10-minute rest breaks for every 4 hours worked (or major portion thereof).