When the payout is due
Fired, laid off or mutual agreement: by end of the next business day. Quit with 48 hours' notice: last day. Quit without notice: within 5 business days or next payday, whichever is first. Source: oregon.gov↗ (opens in a new tab)
Penalties
Willful late final pay triggers penalty wages: 8 hours' pay per day for up to 30 days, with a cap of 100% of unpaid wages in some cases. Source: oregonlegislature.gov↗ (opens in a new tab)
The law and where to check
The law: Or. Rev. Stat. § 652.140 (final pay); ORS 653.601 to 653.661 (sick time) (opens in a new tab)
The agency: Oregon Bureau of Labor and Industries (BOLI), Wage and Hour Division (opens in a new tab)
What federal law says
No federal law requires paid vacation or payout of unused vacation. These are matters of agreement between employer and employee, and state law. Source: U.S. Department of Labor↗ (opens in a new tab)
Vacation and PTO payout checklist for Oregon employers
A simple order of work, based on the rules above. It is not a legal checklist.
- Read your written vacation or PTO policy against the rules above.
- Make any forfeiture or cap rule clear and in writing, where your state allows it.
- Track each employee's accrued, unused balance.
- When someone leaves, pay any vacation owed with the final paycheck on time.
- Keep a record of the balance paid out.
- See our final paycheck guide for your state's deadline.
More Oregon employment law guides
- All Oregon employment laws
- Oregon final paycheck law
- Oregon paid sick leave law
- Oregon meal and rest break laws
- Oregon overtime law
- Oregon pay frequency law
- Oregon new hire reporting
- Oregon at-will exceptions
Vacation and PTO payout laws in other states
See every state on one page, or pick a state:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
All official government sources, last checked October 19, 2026.
Disclaimer: This guide provides general information based on publicly available official sources and is for information only. It is not legal, tax, payroll or employment-law advice and does not guarantee compliance with federal, state or local requirements. Rules can depend on your location, industry, contracts and other circumstances, and laws change. Always check the official source, the relevant government agency or a qualified professional before making a decision. MadyHR.ai accepts no responsibility for any action taken based on this page.
Last checked: . Every rule and source link on this page was checked against the official government source on this date. Laws change, so always open the source link before you act.