Oregon sick time for restaurants: the 10-employee and Portland rules

Every employer in Oregon, including every restaurant, cafe, food truck and bar, must give employees sick time. What changes with the size of your business is whether that time is paid. This guide, checked in October 2026, explains the thresholds, how time is earned and used, and what your business should write down. It is general information, not legal advice. Check the Bureau of Labor and Industries (BOLI) pages for the current rules before you rely on any detail here.

Does your Oregon restaurant have to pay for sick time?

The state labor agency (BOLI) says employers with 10 or more employees in Oregon must provide paid sick time, and employers with six or more employees if they have a location in Portland. Businesses below the threshold must still provide the same amount of sick time, but it can be unpaid. In both cases the time is protected: you cannot discipline, fire or retaliate against an employee for using it properly. BOLI's 2026 materials repeat these thresholds.

Count carefully. Headcount includes full-time, part-time and seasonal employees, and a restaurant with a large part-time roster can cross the line without meaning to. A business with two small locations should ask BOLI how to count across them.

How do employees earn sick time?

Employees earn at least one hour of sick time for every 30 hours worked, up to 40 hours in a year. You can instead give the full 40 hours up front at the start of the year (called frontloading), which many restaurants prefer because it removes the tracking. Employees can begin to use accrued time after 90 days of employment. Other details, such as carry-over of unused hours into the next year and limits on total accrual, are set out in the law and BOLI's guidance. Read them and write them into your policy.

What can employees use sick time for?

The law covers an employee's own illness, injury or health condition, care for a family member, and other reasons that BOLI lists on its sick time page, including certain public health emergencies and situations involving domestic violence, harassment or stalking. The list has been widened in recent years, and a new use, blood donation through an approved program, was added from January 1, 2026, so read BOLI's current list. Employees may use sick time in small increments. BOLI says employers generally may not require a doctor's note for an absence of fewer than three consecutive workdays.

What must you tell employees?

You must tell employees how much sick time they have accrued and used, on a regular schedule. Many restaurants put the balance on the pay stub or in the payroll app. You also need to give new employees notice of their rights and post the required notice where staff can see it. BOLI publishes the poster and a template notice.

How should a restaurant handle scheduling and call-outs?

Sick time creates real scheduling pressure in a business with tight shifts. The practical approach is to write a call-out procedure and apply it fairly. Ask employees to call or text as early as they can, name who they should contact, and explain how the shift will be covered. Do not penalize an employee for using protected sick time, and do not count it against attendance bonuses. Offering a shift swap or a pool of on-call staff gives you flexibility without making sick workers choose between money and rest. Remember that a sick cook in a kitchen is also a food safety problem: a food worker with vomiting or diarrhea must stay home under food safety rules, and a clear sick-time policy supports that.

What records do you need?

Keep records of hours worked, sick time accrued, used and remaining for each employee, and keep them for the period BOLI requires. Payroll software usually tracks accrual automatically, but check that the rates are right: one hour per 30 worked, the 40-hour cap, and the 90-day waiting period. Keep copies of notices given to employees and of any requests for verification.

What are the risks of getting it wrong?

Workers who believe their employer has violated the law can file a complaint with BOLI, and an older law firm overview notes that employees may also have a private right to sue. A single missed accrual can become a back-pay claim across many employees, so a quick audit is worth the time. If you are unsure whether you are above or below the threshold, ask BOLI for technical assistance, which is free.

A worked example for a ten-person restaurant

Suppose your restaurant employs 12 people, including part-timers, with a single location in Beaverton. You are above the 10-employee threshold, so sick time must be paid. A line cook who works 30 hours a week earns one hour of sick time for every 30 hours, so about one hour a week, reaching the 40-hour annual limit in a little under a year. If you frontload 40 hours in January, the cook has the full amount from the start, though the 90-day wait still applies to a new hire. When the cook calls in sick for a Friday shift, you record eight hours of paid sick time, reduce the balance, and tell the cook the new balance at the next pay period. If your restaurant had been in Portland, the threshold would have been 6 employees, and a business with only 7 staff would have owed paid time.

How does this connect to other leave?

Sick time is separate from Paid Leave Oregon, the state's paid family and medical leave insurance program, which has its own contributions and benefits. It is also separate from vacation or paid time off that you choose to offer. If you offer a paid time off policy that is at least as generous and can be used for the same reasons, it may satisfy the sick time law, but confirm the details with BOLI first.

More guides for your business:

• Oregon Fair Work Week law: does it apply to your restaurant?
• Oregon tip pooling rules for restaurants (2026): who can share
• How to price a menu in Oregon where there is no tip credit

More in the US guides for food businesses.