by Jesse Moody, Attorney at Harris Bricken
We all know the Oregon cannabis industry is struggling. We write often about the causes on a macro level, possible solutions, and what we see as business litigators. We haven’t written much about one of the basic areas of employment law that applies to Oregon marijuana businesses: workers rights to wages and employer responsibilities. As marijuana businesses shutter, employees and employers should pay careful attention to Oregon’s wage laws. This post addresses basic things marijuana employees and employers ought to know about paying wages when employment ends.
There is no requirement under Oregon law for a formal contract to establish an employment relationship. As long as the ordinary elements of contract formation are present an employment relationship exists. Usually this means that the person for whom the service is performed (employer) agrees to have another perform the service (employee) for a certain remuneration (wages). And where the putative employer has a right of control over the services provided by the putative employee. Typically this boils down to compensation and right-of-control.
When these elements are present an employer’s promises of wages and benefits are binding. On the flip side, the general rule is that employment is “at-will”. This means that absent some other arrangement, either the employer or employee may terminate the employment contract at any time, for any reason or no reason. This is limited, however, in that an employer cannot terminate the employment contract for certain protected classes (race, religion, national origin, etc.) as established by federal and state law. Oregon also protects employees from discrimination on the basis of sexual orientation.
Federal and Oregon law provide minimum wage requirements. Employers must pay employees on a regular payday schedule and may not withhold or delay paychecks as a form of discipline.
When an employee resigns, i.e. terminates and at-will employment relationship, all wages earned up through the date of termination are due five days after the employee quits (excluding Saturdays, Sundays, and holidays), or at the next regularly scheduled payday, whichever occurs first.
There are strict requirements that apply to the payment of final wages when an employee is are fired, laid off, or quit.
See here for source, BOLI, which is an excellent resource.
An employment contract may be enforced like any other contract. But employers may be subject to penalties in some situations.
When an employer willfully fails to pay all wages due an employee upon termination, as a penalty the employee’s wages continue from the due date at the same hourly rate for eight hours per day until action is commenced or wages are paid, up to a maximum of 30 calendar days. This civil penalty may not exceed the amount of the unpaid wages unless the employer fails to pay within 12 days after receiving written notice of the failure to pay.
The Oregon Supreme Court has defined “willfully” as nothing more than this: That the person knows what he is doing, intends to do what he is doing, and is a free agent. It does not necessarily imply blame, or any malice or wrongdoing toward the other person.
Employers also ought to be aware of ORS 652.200, which allows employees to seek attorneys’ fees in certain circumstances when the final wages are not timely paid. These costs can quickly approach or exceed the amount of unpaid wages. Courts are authorized to award a “reasonable sum” unless the employee has “willfully” violated the employment contract.
Whether you are an employee of a marijuana business or an employer, keep these basics in mind.
Re-published with the permission of Harris Bricken and The Canna Law Blog
Your email address will not be published. Required fields are marked *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
Comment *
Notify me of follow-up comments by email.
Notify me of new posts by email.
Δ
The legal cannabis industry is thriving in the U.S., reaching its highest-ever number of jobs and sales, a new report shows. Vangst, a cannabis industry job platform, found that at…
Maine is the newest frontier for the illicit marijuana trade, with potentially hundreds of suspected unlicensed grow houses operating in the state, a CBS News investigation has found. It’s part…
Ten years ago this month, Iowa policymakers made it legal to use cannabis for certain medical treatment, marking the start of what would eventually become Iowa’s existing medical cannabidiol program.…
By Tom Hymes Remediation in the cannabis industry has become an increasingly hot topic as the practice has expanded in legal markets throughout the country, and for good reason. Remediation…