Oregon Overtime Laws

Overtime in Oregon is determined by both state and federal laws, and rules may vary depending on the employee’s pay rate, occupation, and the industry they work in. As a general rule under federal law and Oregon labor laws, overtime refers to hours worked beyond 40 hours in a workweek and must be paid at 1.5 times the regular hourly rate.

This comprehensive guide dwells on Oregon overtime laws, special rules for different industries, who qualifies for overtime pay, and how it is calculated. This will help both employees and employers. Employees must know their rights as workers, while employers must comply with these Oregon overtime laws to avoid lawsuits.

Overtime laws in Oregon follow minimum federal standards unless state law provides a higher standard of protection for workers. For instance, Oregon state law provides that in addition to being entitled to overtime when working more than 40 hours per week, workers in certain industries may also qualify for daily overtime pay rates when they work beyond a certain number of hours per day. Oregon labor law maximum hours also place limits on how much overtime an employee may work and requires mandatory rest periods.

A manufacturing establishment refers to those engaged in “the process of using machinery to transform materials, substances or components into new products.”

Workers employed in a manufacturing establishment are entitled to overtime pay if they work more than 10 hours per day. However, they may not work more than 13 hours within a 24-hour period, and rest periods are mandatory at the end of any 8-hour shift. 

Additionally, employers cannot require or allow an employee to work more than 55 hours per workweek in a mill, factory, or manufacturing establishment. This rule also applies to a cannery, drier, and packing plant. However, an employee may request permission or provide consent in writing, which allows them to exceed this threshold up to a maximum of 60 hours per workweek, according to the Oregon labor law maximum hours.

Workers employed in canneries, driers, and packing plants are also entitled to overtime pay for hours worked beyond Oregon overtime laws 10 hours per day. It’s important to note that this rule does not apply if the establishment is located on a farm and primarily processes products produced by that same farm.

There is no limit on how many hours an employee may work per day, but the 55-hour weekly threshold still applies following the overtime law Oregon. Similar to manufacturing employees, cannery, drier, and packing plant employees may also work up to 60 hours as long as the worker requested or consented to this in writing. 

In the event that manufacturers of perishable products experience undue hardships, they may request an exemption from the restrictions imposed on the maximum number of hours that their employees may work due to overtime law Oregon. This exemption, however, is still subject to the consent of the employee. This consent may be withdrawn at any time by the employee as long as they provide notice. Notice must be given to the employer at least 7 days before the week during which they no longer wish to work more than 55 hours. The number of hours worked is limited to 84 hours per week in the first four weeks and 80 hours per week for the remainder of the hardship period.

Not every employee is qualified to be paid overtime. This section will describe who is entitled to overtime pay in Oregon under federal and state laws. 

In early 2021, Oregon labor groups pushed for the passage of House Bill 2358, which would have required farmers to pay overtime to their workers. Unlike in Colorado, where a similar measure was passed, the status quo remains in Oregon: agricultural employees are excluded from overtime pay. 

Under the Fair Labor Standards Act (FLSA), an employee is not entitled to overtime pay if the following two conditions are present:

Employees who satisfy the above criteria are considered exempt employees. Therefore, they are not entitled to overtime pay under federal law. As a general rule, all other employees are non-exempt employees unless other exceptions apply under state law.

In Oregon, the employer has the burden of proving that an employee is exempt from overtime pay by satisfying the duties test, the discretion and independent judgment test, and the salary basis test.

So, how does overtime work in Oregon? As previously mentioned, under the Fair Labor Standards Act (FLSA), all non-exempt employees must be paid 1.5 times their hourly rate for hours worked beyond 40 hours in a workweek.

If an employee works at different pay rates within the same workweek, the average hourly rate determines their overtime pay. 

Some employees may be paid a fixed weekly salary regardless of the number of hours worked, which may differ every week. To calculate overtime pay in this situation, the employer must use the fluctuating workweek method. To determine overtime utilizing this method, simply follow the steps below.

All forms of compensation, including non-discretionary bonuses, must be considered part of an employee’s regular pay and mentioned in an employment contract. On the other hand, the following are not included:

• Expense reimbursements;
• Premium pay for Saturday, Sunday, or holiday work;
• Discretionary bonuses; and
• Gifts for special occasions.

Overtime laws in Oregon help level the playing field for workers and help ensure that workplaces are safe and equitable for workers. Employers must comply with these laws in order to avoid expensive claims and fines on unpaid overtime, which could end up being double what they would have paid if they had followed how the Oregon overtime laws 8 hours treat overtime.