Oregon’s New Law Provides Employees More Time to File Suit

By: Naomi D. Johnson, Partner

The Oregon Legislature recently enacted House Bill (HB) 2957, which affects the applicable statutes of limitations in employment cases for individuals who file a complaint with the Oregon Bureau of Labor & Industries (BOLI).

Unlike many other states, Oregon does not require employees who want to bring employment claims against their employers to exhaust their administrative remedies by first filing a complaint with BOLI. However, historically, if an individual filed a BOLI complaint, once BOLI issued its determination and a notice of their right to sue (“right-to-sue letter”), the complainant had 90 days from the date of the right-to-sue letter to file a lawsuit. This was the case regardless of the amount of time remaining on the statute of limitations associated with the asserted claims and irrespective of BOLI’s determination. Because many employment law claims are governed by a five-year statute of limitations, the 90-day BOLI statute of limitations had the effect of shortening the statute of limitations for many claims.

HB 2957, which took effect on June 24, 2025,  has amended the law to ensure that BOLI’s determinations on agency complaints do not shorten the time employees have to file suit. The following framework now applies:

• If BOLI issues a finding of substantial evidence of a violation, or if BOLI does not undertake an investigation of the complaint, the complainant must file a lawsuit:
  • • within 90 days after the right-to-sue letter is issued, if there are 90 days or less left on the applicable statute of limitations at the time of issuance; or
    • before the original statute of limitations expires, if there are more than 90 days left at the time at the time of issuance.
• If BOLI has undertaken an investigation and made a finding of no substantial evidence of a violation, the complainant must file a lawsuit:
  • • within one year after the right-to-sue letter is issued, if more than one year remains on the applicable statute of limitations; or
    • before the statute of limitations expires, if at least 90 days but less than one year remains on the applicable statute of limitations; or
    • within 90 days after the right-to-sue letter is issued, if less than 90 days remain on the applicable statute of limitations.

HB 2957 also now prohibits employers from entering into agreements with former, current, or prospective employees that has the effect of shortening the statute of limitations for violations over which BOLI has enforcement authority.

Key Takeaways for Employers:

• The new statute of limitations framework should be taken into account when considering the period of potential risk for claims filed with BOLI.
• Employers should reassess their record-retention policies in light of the new law.
• Employers should review their employment agreements to ensure they are not shortening the applicable statute of limitations in violation of the new law.