Washington vs Oregon Payroll Comparison

Compare payroll compliance requirements between Washington and Oregon. See key differences in wages, taxes, leave policies, and employer obligations.

Compare State Payroll Requirements

Select 2 states to compare their payroll compliance requirements side-by-side.

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RequirementWashingtonOregon
Minimum Wage⚠️$17.13/hour (2026); Seattle $21.30⚠️Varies: Portland Metro $15.95, Standard $14.70, Rural $13.70 (2024)
Tipped Minimum$17.13 (no tip credit)Same as regular minimum wage (no tip credit)
Overtime Threshold40 hours/week⚠️40 hours/week; some daily OT for ag/manufacturing
Final Pay (Termination)End of next regular pay period⚠️Immediately (within 24 hours if requested)
Final Pay (Resignation)End of next regular pay periodWithin 5 business days (or next payday if sooner)
PTO Payout Required?No (unless policy requires)⚠️Yes, if employer policy promises it
Pay Frequency MandateAt least monthlyAt least monthly; 35 days max between pay periods
State Income TaxNone⚠️Yes (4.75% - 9.9% progressive)
Unemployment InsuranceYesYes
State Disability InsuranceNo (separate from PFML)No (but PFMLI provides some coverage)
Paid Family Leave⚠️Yes (WA PFML)⚠️Yes - PFMLI (2023)
Paid Sick Leave⚠️Yes (1 hour per 40 hours)⚠️Yes - 40 hours/year required
Workers' Comp Required⚠️Yes (all employees)⚠️Yes (all employers)
⚠️More restrictive / complexSimpler / no requirement

Summary

Oregon has the most complex compliance requirements. Key differences: Washington has no state income tax.

Key Differences: Washington vs Oregon

WAWashington

  • Minimum Wage:$17.13/hour (2026); Seattle $21.30
  • Tipped Minimum:$17.13 (no tip credit)
  • Overtime Threshold:40 hours/week
  • Final Pay (Termination):End of next regular pay period
  • Final Pay (Resignation):End of next regular pay period
  • PTO Payout Required?:No (unless policy requires)
View full Washington guide →

OROregon

  • Minimum Wage:Varies: Portland Metro $15.95, Standard $14.70, Rural $13.70 (2024)
  • Tipped Minimum:Same as regular minimum wage (no tip credit)
  • Overtime Threshold:40 hours/week; some daily OT for ag/manufacturing
  • Final Pay (Termination):Immediately (within 24 hours if requested)
  • Final Pay (Resignation):Within 5 business days (or next payday if sooner)
  • PTO Payout Required?:Yes, if employer policy promises it
View full Oregon guide →

Understanding Washington and Oregon Payroll Differences

State Income Tax: Washington has no state income tax, while Oregon has state income tax (Yes (4.75% - 9.9% progressive)). This significantly impacts both employer withholding responsibilities and employee take-home pay.

Minimum Wage: Washington minimum wage is $17.13/hour (2026); Seattle $21.30, compared to Oregon at Varies: Portland Metro $15.95, Standard $14.70, Rural $13.70 (2024). Employers must pay at least the higher of federal, state, or local minimum wage requirements.

Paid Sick Leave: Washington: Yes (1 hour per 40 hours). Oregon: Yes - 40 hours/year required. States with mandatory paid sick leave require employers to track accruals and provide specific leave entitlements.

For complete compliance requirements, review the full state guides for Washington and Oregon.