Oregon’s wage and hour law requires every employer to pay employees all wages due and owing on a regular payday. As with everything, methods for paying wages have evolved over time.
Payment by check and even cash remains a standard practice for some employers (though we’d recommend getting a signed receipt whenever paying wages in cash).
Employers who use an electronic method for paying wages should be aware that a paperless system doesn’t change the tight deadlines for payment of final wages upon termination.
For more information on the final paycheck deadlines please see our factsheet on “Final Paychecks.”Under wage collection law, employers may pay final wages via direct deposit if “the employee and the employer have agreed to such deposit.” ORS 652.140(4). Although the anti-retaliation provisions of ORS 652 and ORS 653 would not apply to an employer who opts not to hire or to terminate employees because they invoke the right to receive a paper check, that does not mean another legal theory or tort claim couldn’t be filed.
Key points: If you offer direct deposit, the employee (not employer) chooses the financial institution.