HB 4094 Oregon House · 2026 Regular Session

Relating to compensation for certain unused paid time off upon termination of employment; prescribing an effective date.

Summary

[ Requires employers who provide paid vacation time to compensate employees for all earned or accrued but unused paid vacation time when employment terminates. ] 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. Takes effect on the 91st day following adjournment sine die.

Issues: ✓ Labor & Employment

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 2, 2026 Last action Mar 7, 2026

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What changed between versions

Introduced → A-Engrossed · 4 edits

MODERATE

This bill was amended to clarify that employers must pay out unused paid time off (PTO) upon termination only if they have a written policy or employment contract requiring such payment. The original version required all employers providing vacation time to pay out unused time, while the amended version limits this requirement to those who have already established a policy or contract for PTO payouts. The bill also amended ORS 652.140 to explicitly include compensation for unused PTO under final wage requirements.

Scope change

The bill's scope was narrowed from applying to all employers providing paid vacation time to only those employers with written policies or employment contracts requiring PTO payouts upon termination.

ELIGIBILITY

Changed requirement from all employers providing vacation time to only employers with written policies or contracts for PTO payouts

REQUIREMENT

Removed detailed definitions of what constitutes 'paid vacation time' and specific conditions for forfeiture that were in the original version

Added explicit provision in ORS 652.140 subsection (7) to include compensation for unused PTO as part of final wages

TECHNICAL

Removed bracketed editorial notes and formatting changes from the original draft

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 7, 2026

Lower · Passed

In committee upon adjournment.

lower

Feb 18, 2026

Committee

Referred to Ways and Means by order of Speaker.

lower

Feb 18, 2026

Lower · Passed

Recommendation: Do pass with amendments, be printed A-Engrossed, and be referred to Ways and Means.

lower

Feb 2, 2026

Committee

Referred to Labor and Workforce Development.

lower

Feb 2, 2026

Introduced

First reading. Referred to Speaker's desk.

lower

8 primary · 10 co-sponsors