Oregon Employment Law: Key Legislative Changes for 2025

Takeaways

• Significant employment law changes, taking effect at various points between May 1 and Sept. 30, will impact employers for the rest of 2025 and beyond.
• Employer compliance and training efforts will be affected in the following areas: Workplace accommodations, agency interaction, professional employer organizations, unemployment and paid leave programs, and anti-discrimination protections.
• Employers and legal counsel should review the changes carefully and update internal policies, training programs, and compliance protocols.

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• Oregon State Legislature Bills and Laws

Article

Oregon employers should note several significant legislative enactments that either recently took effect or will become effective later in 2025. These changes in the law span a range of employment law areas, including workplace accommodations, agency structure, professional employer organizations (PEOs), unemployment and paid leave programs, and anti-discrimination protections.

Below is a categorized summary of the most relevant bills by effective date.

Workplace Accommodations

Effective May 7, 2025

HB 2541 expands workplace protections for agricultural workers by affirming their right to express breast milk during work hours. This measure aligns agricultural worker protections with those already afforded to other sectors, ensuring access to reasonable rest periods and private, sanitary locations for expressing milk. Employers in the agricultural industry should review their facilities and policies to ensure compliance.

Agency Structure and Employer Support

Effective on or about Sept. 28, 2025

HB 2248 establishes the Employer Assistance Division within the Bureau of Labor and Industries (BOLI). This new division is tasked with providing education, training, and interpretive guidance — including advisory opinions — to help employers comply with labor laws enforced by BOLI. This initiative reflects a more proactive approach to employer compliance and may serve as a valuable resource for HR professionals navigating complex regulatory landscapes.

Professional Employer Organizations (PEOs)

Effective on or about Sept. 28, 2025

HB 2800 introduces a licensing requirement for PEOs operating in Oregon. Key provisions include:

• Mandatory licensure through the Department of Consumer and Business Services.
• Access to accident experience records from the State Accident Insurance Fund to assist in setting workers’ compensation rates.
• Authority for the director of the Department of Consumer and Business Services to disclose certain information when a PEO’s coverage responsibilities end.
• Clarification of exemptions from employer liability under specific conditions.

Employers utilizing or considering PEO services should ensure their providers are compliant with these new licensing and disclosure requirements.

Unemployment Insurance and Paid Leave Oregon

Effective on or about Sept. 28, 2025

Several bills make technical and substantive changes to Oregon’s unemployment and paid leave systems:

• HB 3021 revises statutes related to both unemployment insurance and Paid Leave Oregon, although the bill primarily focuses on administrative updates and alignment between the two programs.
   
• SB 69 introduces administrative and technical modifications to Paid Leave Oregon and the Oregon Family Leave Act (OFLA). It creates an exception to OFLA eligibility for airline flight crew employees who meet federal hours-of-service requirements.
   
• SB 858 allows an authorized agent to act on behalf of a deceased or incapacitated individual in matters related to Paid Leave Oregon claims, ensuring continuity of benefits processing.
   
• SB 859 grants the director of the Employment Department authority to compromise, adjust, or write off certain debts and overpayments under the Paid Leave Oregon program.

These changes reflect ongoing efforts to streamline and humanize Oregon’s leave and benefits infrastructure, while also addressing unique employment contexts such as airline crews and posthumous claims.

Anti-Discrimination and Hiring Practices

Effective on or about Sept. 28, 2025

HB 3187 clarifies the definition of discrimination “because of age” under Oregon employment law. It also restricts employers, prospective employers, and employment agencies from requesting or requiring disclosure of an applicant’s age or date of birth and dates of attendance or graduation from educational institutions prior to completing an initial interview or, if no interview occurs, before making a conditional offer of employment. This measure aims to reduce age-related bias in hiring and aligns with broader trends toward fair chance hiring practices.

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These legislative updates reflect Oregon’s continued commitment to expanding worker protections, modernizing administrative processes, and supporting employer compliance. Employers and legal counsel should review these changes carefully and update internal policies, training programs, and compliance protocols accordingly. As always, proactive adaptation is key to minimizing risk and fostering a legally sound workplace environment.