Oregon
Oregon: Asking for a Raise is Protected Activity Under Wage Transparency Law
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APPLIES TO All Employers with Employees in OR |
EFFECTIVE APR 9, 2026 |
QUESTIONS? Contact HR On-Call |
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Discussion
In Mirkovic v. Tenasys Corp., the Oregon Court of Appeals held that Oregon’s wage transparency statute protects employees from retaliation for inquiring about their own wages by requesting a raise, regardless of whether the request involves an allegation of pay inequity or class-based discrimination.
Here, the plaintiff worked as a software engineer for the company and in the spring of 2022, she requested both a promotion and a salary increase. After the company offered her a new title and raise, the plaintiff emailed one of the company’s owners seeking an additional $5,000 increase and future consideration for a director-level role. Shortly after her follow-up email, the company terminated the plaintiff’s employment.
Oregon’s wage transparency law makes it an unlawful employment practice for an employer to retaliate against an employee because the employee has “[i]nquired about, discussed or disclosed in any manner the wages of the employee or of another employee.” The court held that the phrase “the wages of the employee” plainly encompasses an employee’s inquiry into their own compensation, including a direct request for a raise made to management. The court noted that nothing in the statute limits its reach to discussions among coworkers or to circumstances involving alleged pay discrimination.
This ruling makes clear that, in Oregon, asking for a raise is protected activity, and how an employer responds to that request can be consequential. Employers may lawfully deny a raise request but may not take adverse action against the employee because the request was made. Retaliation exposure may exists even in the absence of an alleged pay disparity or protected-class discrimination claim, meaning that the timing of any adverse employment action following a compensation discussion will be closely scrutinized.
Action Items
- Review compensation practices for compliance with anti-retaliation protections.
- Consult with legal counsel when adverse action is contemplated in close proximity to any protected activity.
- Have appropriate personnel trained on the requirements.
Oregon: Legislature Resolves Federal Tax Conflict for Paid Leave Oregon
In January 2025, the IRS issued Revenue Ruling 2025-4, clarifying that the portion of state paid family and medical leave benefits funded by employer contributions may be treated as taxable wages subject to federal payroll taxes. Without legislative action, this change would have required Paid Leave Oregon to issue Forms W-2 to benefit recipients, pay and report additional federal payroll taxes on certain benefits, and make significant changes to payroll and reporting systems. In response, Oregon enacted SB 1520, which authorizes Paid Leave Oregon to adopt administrative rules reallocating how employer and employee contributions are designated, and directing employee contributions to fund all qualifying leave types, including medical leave, while limiting employer contributions to family and safe leave only. For employers participating in the state-administered Paid Leave Oregon program, no action is required, there are no new costs, and the program will continue to operate the same way it does today, with Paid Leave Oregon implementing the behind-the-scenes accounting changes by January 1, 2027. Employers using a private equivalent plan should consult their plan administrator for guidance, as SB 1520 applies only to the state-administered program.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase