Oregon recently enacted House Bill (HB) 2957, which affects statutes of limitations in employment cases when individuals file a charge with Oregon's Bureau of Labor and Industries (BOLI). HB 2957 became effective on June 24, 2025.
Quick Hits
- Oregon's HB 2957 ensures that Bureau of Labor and Industries resolutions do not shorten the statute of limitations for employment lawsuits.
- HB 2957 prohibits employers from shortening the statute of limitations in agreements with employees.
Many individuals file a charge with BOLI prior to filing suit in court. BOLI will investigate and issue either a finding of substantial evidence, a finding of no cause, or no finding at all. Often, BOLI will conclude its investigation and provide the claimant with a notice of the right to file a civil suit. In the past, when BOLI dismissed a charge without finding reasonable cause for the allegations, the individual had ninety days from the date of the right to sue notice to file suit in court, regardless of whether there was time left on the statute of limitations for their claim. Many Oregon state law employment claims have a statute of limitations of five years. HB 2957 provides that, depending on how BOLI resolves the complaint, the agency's resolution will not shorten the time employees have to bring a timely suit in court.
Specifically:
- If BOLI has made a finding of substantial evidence of a
violation, or if BOLI did not investigate, the complainant can file
a lawsuit:
- within ninety days after the right to sue letter, if there are ninety days or less left on the statute of limitations when the letter is issued; or
- before the statute of limitations runs out, if there are more than ninety days left.
- If BOLI has investigated and found no cause, the complainant
can file a lawsuit:
- within one year after the notice is issued, if there is more than one year left on the statute of limitations;
- before the statute of limitations runs out, if there are between ninety days and one year left; or
- within ninety days after the notice is issued, if there are less than ninety days left on the statute of limitations.
HB 2957 also prohibits employers from entering into agreements with former, current, or prospective employees that would have the effect of shortening the statute of limitations for violations enforceable by BOLI.
Employers may want to take note of these modifications to Oregon's statute of limitations for employment-based claims when determining the duration of exposure to potential claims and how long to retain records.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
