Oregon Revised Statutes

Or. Rev. Stat. § 652.150 (2026)

Penalty wage for failure to pay wages on termination of employment

✓ current as of May 2026
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      652.150 Penalty wage for failure to pay wages on termination of employment. (1) Except as provided in subsections (2) and (3) of this section, if an employer willfully fails to pay any wages or compensation of any employee whose employment ceases, as provided in ORS 652.140 and 652.145, then, as a penalty for the nonpayment, the wages or compensation of the employee shall continue from the due date thereof at the same hourly rate for eight hours per day until paid or until action therefor is commenced. However:

      (a) In no case shall the penalty wages or compensation continue for more than 30 days from the due date; and

      (b) A penalty may not be assessed under this section when an employer pays an employee the wages the employer estimates are due and payable under ORS 652.140 (2)(c) and the estimated amount of wages paid is less than the actual amount of earned and unpaid wages, as long as the employer pays the employee all wages earned and unpaid within five days after the employee submits the time records.

      (2)(a) If the employee or a person on behalf of the employee submits a written notice of nonpayment, the penalty may not exceed 100 percent of the employee’s unpaid wages or compensation unless the employer fails to pay the full amount of the employee’s unpaid wages or compensation within 12 days after receiving the notice.

      (b) If the employee or a person on behalf of the employee fails to submit a written notice of nonpayment, the penalty may not exceed 100 percent of the employee’s unpaid wages or compensation.

      (c) A written notice of nonpayment must include the estimated amount of wages or compensation alleged to be owed or an allegation of facts sufficient to estimate the amount owed. Submission of a written notice of nonpayment that fails to include the estimated amount of wages or compensation alleged to be owed or an allegation of facts sufficient to estimate the amount owed does not satisfy the requirement for written notice under this subsection unless the employer has violated ORS 652.610, 652.640 or 653.045.

      (d) For purposes of determining when an employer has paid wages or compensation under this subsection, payment occurs on the date the employer delivers the payment to the employee or sends the payment by first class mail, express mail or courier service.

      (3)(a) For purposes of this section, a commission owed to an employee by a business that primarily sells motor vehicles or farm implements is not due until all of the terms and conditions of an agreement between the employer and employee concerning the method of payment of commissions are fulfilled. If no such agreement exists, the commission is due with all other earned and unpaid wages or compensation as provided in ORS 652.140.

      (b) Notwithstanding subsection (2) of this section, when there is a dispute between an employer and an employee concerning the amount of commission due under paragraph (a) of this subsection, if the amount of unpaid commission is found to be less than 20 percent of the amount of unpaid commission claimed by the employee, the penalty may not exceed the amount of the unpaid commission or $200, whichever is greater.

      (4) Subsections (2) and (3)(b) of this section do not apply when:

      (a) The employer has violated ORS 652.140 or 652.145 one or more times in the year before the employee’s employment ceased; or

      (b) The employer terminated one or more other employees on the same date that the employee’s employment ceased.

      (5) The employer may avoid liability for the penalty described in this section by showing financial inability to pay the wages or compensation at the time the wages or compensation accrued. [Amended by 1957 c.244 §1; 1991 c.966 §2; 1995 c.501 §1; 2001 c.690 §1; 2003 c.779 §1; 2005 c.664 §2; 2011 c.348 §2]

Notes of Decisions
Cited in 151 cases (25 in the last 5 years), 1955–2026 · leading case: Wilson v. Smurfit Newsprint Corp., 107 P.3d 61 (Or. Ct. App. 2005).
Wilson v. Smurfit Newsprint Corp., 107 P.3d 61 (Or. Ct. App. 2005). · cites it 86× “In this class action, plaintiffs characterize the sale as a termination of their employment and allege that defendant did not pay them various forms of earned compensation within one business day, thereby entitling them to statutory penalties.”
Migis v. Autozone, Inc., 387 P.3d 381 (Or. Ct. App. 2016). · cites it 55× “In defendant’s third and fourth assignments of error, defendant challenges civil penalties that the trial court imposed under ORS 652.150 and ORS 653.055. Those assignments contend that, as to the off-the-clock claims, the court erred in awarding civil penalties in an amount of…”
North Marion Sch. Dist. 15 Ex Rel. Trejo v. Acstar Ins., 169 P.3d 1224 (Or. 2007). · cites it 47× “350(1), thereby entitling plaintiffs to liquidated damages from the surety under ORS 279.”
Wyatt v. Body Imaging, P.C., 989 P.2d 36 (Or. Ct. App. 1999). · cites it 38× “The Supreme Court, however, has construed the term as used in ORS 652.150 to require no showing of bad faith: "`In civil cases the word "willful," as ordinarily used in courts of law, does not necessarily imply anything blamable, or any malice or wrong toward the other party, or…”
Mathis v. Hous. Auth. of Umatilla Cnty., 242 F. Supp. 2d 777 (D. Or. 2002). · cites it 25× “For the reasons that follow, the motion is granted to the extent that: (1) Mathis was an employee within the meaning of the FLSA and ORS Chapter 653; (2) she is entitled to overtime pay as provided in the collective bargaining agreement; and (3) she may recover one penalty under…”
Willene Lowdermilk v. United States Bank Nat'l Ass'n, 479 F.3d 994 (9th Cir. 2007). · cites it 5× “Second, Plaintiff alleged that Defendant failed to promptly pay Plaintiff her wages upon termination, for which she sought damages and penalty wages under Or. Rev. Stat. § 652.150 . In addition to damages and penalty wages, Plaintiff sought costs, attorneys’ fees, and interest,…”
Taylor v. Werner Enter., Inc., 988 P.2d 384 (Or. 1999). · cites it 19× “(Werner) violated ORS 652.150 by failing to pay plaintiffs wages upon termination of his employment and violated ORS 652.”
Johnson v. O'Malley Bros. Corp., 397 P.3d 554 (Or. Ct. App. 2017). · cites it 7× “” Therefore, the arbitrator declined to award continuation wages as a penalty under ORS 652.150(1). 6 Following the arbitrator’s rulings on the merits, plaintiff sought $33,732.”
Thomas v. US Bank Nat'l Ass'n, 260 P.3d 711 (Or. Ct. App. 2011). · cites it 8× “140; ORS 652.150. Defendant, consistently with the scope of our interlocutory review, 2 asserts that the trial court erred in denying its motion for any of three reasons: (1) issue preclusion bars plaintiffs’ request for class certification; (2) plaintiffs’ claims were barred…”
North Marion Sch. Dist. 15 v. Acstar Ins., 136 P.3d 42 (Or. Ct. App. 2006). · cites it 18× “140 and ORS 652.150 for, penalty wages because he was not paid such wages when due; and for his attorney fees incurred in an amount to be determined pursuant to ORS 652.”
Cornier v. Paul Tulacz, DVM PC, 30 P.3d 1210 (Or. Ct. App. 2001). · cites it 11× “140(2), which provides that “all wages earned and unpaid at the time of quitting become due and payable immediately,” and ORS 652.150, which provides a penalty for employers who do not make the payment required by ORS 652.”
Pope v. Jud. Dep't, 721 P.2d 462 (Or. Ct. App. 1986). · cites it 22× “140(2); ORS 652.150. The court awarded plaintiff $1,372 plus costs and attorney fees.”
— Or. Rev. Stat. § 652.150(1) — 26 cases
Wilson v. Smurfit Newsprint Corp., 107 P.3d 61 (Or. Ct. App. 2005). “In this class action, plaintiffs characterize the sale as a termination of their employment and allege that defendant did not pay them various forms of earned compensation within one business day, thereby entitling them to statutory penalties.”
North Marion Sch. Dist. 15 Ex Rel. Trejo v. Acstar Ins., 169 P.3d 1224 (Or. 2007). “350(1), thereby entitling plaintiffs to liquidated damages from the surety under ORS 279.”
Johnson v. O'Malley Bros. Corp., 397 P.3d 554 (Or. Ct. App. 2017). “” Therefore, the arbitrator declined to award continuation wages as a penalty under ORS 652.150(1). 6 Following the arbitrator’s rulings on the merits, plaintiff sought $33,732.”
Young v. State of Oregon, 133 P.3d 915 (Or. 2006).
Migis v. Autozone, Inc., 387 P.3d 381 (Or. Ct. App. 2016). “In defendant’s third and fourth assignments of error, defendant challenges civil penalties that the trial court imposed under ORS 652.150 and ORS 653.055. Those assignments contend that, as to the off-the-clock claims, the court erred in awarding civil penalties in an amount of…”
— Or. Rev. Stat. § 652.150(1)(a) — 5 cases
North Marion Sch. Dist. 15 Ex Rel. Trejo v. Acstar Ins., 169 P.3d 1224 (Or. 2007). “350(1), thereby entitling plaintiffs to liquidated damages from the surety under ORS 279.”
Summit RWP, Inc. v. Hallin, 557 P.3d 1113 (Or. Ct. App. 2024).
Meyer v. Cloudcrest Homes, LLC, 326 Or. App. 575 (Or. Ct. App. 2023).
Summit RWP, Inc. v. Hallin (Or. Ct. App. 2024).
— Or. Rev. Stat. § 652.150(1)(b) — 1 case
Gist v. ZoAn Mgmt., Inc., 473 P.3d 565 (Or. Ct. App. 2020).
— Or. Rev. Stat. § 652.150(2) — 1 case
Russell v. US Bank Nat'l Ass'n, 265 P.3d 1 (Or. Ct. App. 2011).
— Or. Rev. Stat. § 652.150(2)(a) — 1 case
Marshall v. Pollin Hotels II, LLC, 170 F. Supp. 3d 1290 (D. Or. 2016).
— Or. Rev. Stat. § 652.150(2)(b) — 1 case
Johnson v. O'Malley Bros. Corp., 397 P.3d 554 (Or. Ct. App. 2017). “” Therefore, the arbitrator declined to award continuation wages as a penalty under ORS 652.150(1). 6 Following the arbitrator’s rulings on the merits, plaintiff sought $33,732.”
— Or. Rev. Stat. § 652.150(2)(c) — 1 case
Johnson v. O'Malley Bros. Corp., 397 P.3d 554 (Or. Ct. App. 2017). “” Therefore, the arbitrator declined to award continuation wages as a penalty under ORS 652.150(1). 6 Following the arbitrator’s rulings on the merits, plaintiff sought $33,732.”
— Or. Rev. Stat. § 652.150(3) — 1 case
Wilson v. Smurfit Newsprint Corp., 107 P.3d 61 (Or. Ct. App. 2005). “In this class action, plaintiffs characterize the sale as a termination of their employment and allege that defendant did not pay them various forms of earned compensation within one business day, thereby entitling them to statutory penalties.”
— Or. Rev. Stat. § 652.150(3)(b) — 1 case
Russell v. US Bank Nat'l Ass'n, 265 P.3d 1 (Or. Ct. App. 2011).
— Or. Rev. Stat. § 652.150(5) — 2 cases
North Marion Sch. Dist. 15 Ex Rel. Trejo v. Acstar Ins., 169 P.3d 1224 (Or. 2007). “350(1), thereby entitling plaintiffs to liquidated damages from the surety under ORS 279.”
Russell v. US Bank Nat'l Ass'n, 265 P.3d 1 (Or. Ct. App. 2011).
— Or. Rev. Stat. § 652.150(l)(a) — 2 cases
Moholt v. Dooney & Bourke, Inc., 63 F. Supp. 3d 1289 (D. Or. 2014).
North Marion Sch. Dist. 15 Ex Rel. Trejo v. Acstar Ins., 169 P.3d 1224 (Or. 2007). “350(1), thereby entitling plaintiffs to liquidated damages from the surety under ORS 279.”
— Or. Rev. Stat. § 652.150(l)(b) — 1 case
Russell v. US Bank Nat'l Ass'n, 265 P.3d 1 (Or. Ct. App. 2011).
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