How to close a restaurant in Oregon follows the same general framework as closing anywhere, but Oregon has specific rules on final paycheck timing, OLCC liquor license administration, and the absence of a state sales tax that differ from other states. Here is what Oregon restaurant owners need to know.
Final Paycheck Requirements in Oregon
Oregon has some of the strictest final paycheck laws in the country. If you terminate an employee (including a layoff due to business closure), you must pay the final paycheck immediately -- on the last day of work. If the employee resigns with at least 48 hours notice, the final paycheck is due on the last day of work. If the employee resigns without notice, the final paycheck is due within five business days or the next regular payday, whichever comes first.
"Immediately" means on the last day of work, not the next payday. This is a hard requirement. Oregon employers who fail to pay final wages on time are subject to penalty wages equal to eight hours of wages per day for each day the payment is delayed, up to 30 days.
Oregon also requires that accrued vacation and PTO be paid out upon termination if your written policy promises it. Review your employee handbook before setting a closing date.
The Oregon Bureau of Labor and Industries (oregon.gov/boli) enforces wage payment laws. Violations are taken seriously in Oregon.
OLCC Liquor License Rules in Oregon
Oregon liquor licenses are administered by the Oregon Liquor and Cannabis Commission (OLCC) (oregon.gov/olcc). Unlike some states with county-level administration, Oregon has a unified state-level system.
To surrender an Oregon liquor license, you submit a written notice to the OLCC stating your closure date and return the physical license. The OLCC will process the surrender and issue a confirmation.
To transfer a license to a buyer, the buyer must apply to the OLCC for a new license or for approval of a license transfer. Oregon does not have a quota system for most license types, so licenses generally do not have significant secondary market value. However, certain license types (full on-premises sales licenses in competitive markets) may have some value.
Oregon allows the transfer of a license to a new owner at the same location without the new owner having to start the full application process from scratch, which can speed up the transfer timeline.
Oregon Has No State Sales Tax
Oregon is one of five states with no state sales tax. If you operated a restaurant in Oregon, you were not collecting or remitting state sales tax. This eliminates one of the common closing steps for restaurant owners in other states.
However, Oregon does have a Corporate Activity Tax (CAT) for businesses with Oregon commercial activity over $1 million per year. If your restaurant was subject to the CAT, you must file a final CAT return with the Oregon Department of Revenue (oregon.gov/dor).
Oregon also has a statewide transit tax and a local transit tax in some jurisdictions (TriMet in the Portland metro area, Lane Transit District in the Eugene area). If you were withholding these taxes from employee wages, file final returns with the Oregon Department of Revenue.
WARN Act Considerations in Oregon
The federal WARN Act requires employers with 100 or more full-time employees to provide 60 days advance notice before a plant closing or mass layoff. Most independent restaurants in Oregon do not meet this threshold.
Oregon does not have a state-level WARN Act equivalent, so the federal threshold applies. If your restaurant has fewer than 100 full-time employees, you are not subject to WARN Act notice requirements.
LLC Dissolution in Oregon
If you operated your restaurant as an Oregon LLC, you must file Articles of Dissolution with the Oregon Secretary of State (sos.oregon.gov). The filing fee is $100. You can file online through the Oregon Business Registry.
Before filing for dissolution, pay all outstanding Oregon taxes. The Secretary of State will not process the dissolution if there are outstanding tax obligations.
After filing the Articles of Dissolution, your LLC has a winding-up period during which you can settle outstanding debts, distribute remaining assets, and close bank accounts.
Oregon-Specific Closing Checklist
- Notify employees and pay final wages immediately on last day of work (Oregon law)
- Notify OLCC of liquor license surrender or initiate transfer process
- File final Oregon payroll tax returns (withholding, unemployment insurance)
- File final Oregon Corporate Activity Tax return if applicable
- File final TriMet/LTD transit tax returns if applicable
- File Articles of Dissolution with Oregon Secretary of State ($100 fee)
- Cancel Oregon business license if applicable
- Notify Oregon Health Authority of food establishment closure
Related guides: How to close a restaurant: the complete guide | What happens to employees when a restaurant closes? | Restaurant liquor license: what happens when you close