(650) 332-8623Oregon Overtime Law: Your Guide to Rates, Statutes, Calculations, and More (2025)
This guide has everything you need to know about Oregon’s overtime laws for 2025, including rates, thresholds, statutes, and much more.
1.5x
Oregon's Primary Overtime Pay Rate
As is the usual case throughout the U.S., Oregon employees can earn overtime at a rate of 1.5 times their normal rate of pay after exceeding the state’s threshold for overtime pay eligibility—see below.
40 hours / week
Threshold to Receive Overtime in Oregon
Oregon law requires most employers to pay eligible employees overtime wages for any hours worked beyond 40 in a single workweek. Unlike some states, Oregon does not have a daily overtime threshold, except in specific industries (see below). Employers cannot offer compensatory time off instead of overtime pay unless they are a government agency.
Special overtime rules apply in Oregon for certain industries:
- Canneries, driers, and packing plants: Overtime applies after 10 hours in a single workday.
- Manufacturing workers: Overtime applies after 10 hours in a workday or 40 hours in a workweek, whichever is more beneficial to the employee, unless a collective bargaining agreement states otherwise.
- Police officers, firefighters, mine workers, and healthcare workers: May have different overtime rules. Employees should contact the Bureau of Labor & Industries (BOLI) for clarification.
N/A
Additional Oregon Overtime Pay Rate
Oregon does not have a double-time overtime rate unlike some states like California.
ORS Chapter 653
The Main Overtime Statute(s) in Oregon
Oregon’s overtime laws are outlined in Oregon Revised Statutes (ORS) Chapter 653, which establishes overtime requirements, minimum wage laws, and labor standards. Other key statutes include:
- ORS 653.261 – Establishes overtime pay requirements and exemptions.
- ORS 652.140 – Governs final paycheck requirements for employees leaving a job.
- ORS 653.020 – Defines exemptions from overtime pay.
BOLI
The Bureau of Labor & Industries is Responsible for Enforcing Overtime Laws in Oregon
In Oregon, the Bureau of Labor & Industries (BOLI) is responsible for enforcing overtime laws, investigating wage and hour violations, handling employee complaints, and ensuring employers comply with state labor laws. Employees with concerns about overtime pay can contact BOLI at 971-245-3844 or visit the BOLI website for more information.
How to Calculate Overtime Pay in OR
To calculate overtime in Oregon, you first need to know an employee’s regular rate of pay, which includes all forms of cash-based compensation, including their base salary rate, any commission or bonus payments to which they’re entitled for the period, and any other cash-based earnings.
If an employee is paid hourly, that amount is their regular rate of pay. If they are salaried (based on a 40-hour workweek), the regular rate is determined as follows:
- Multiply the monthly salary by 12 to get the annual salary.
- Divide the annual salary by 52 to get the weekly salary.
- Divide the weekly salary by 40 to get the regular hourly rate.
The regular rate may not be less than the minimum wage.
Example Calculation: If an employee worked 16 hours at $18.00 per hour and 30 hours at $20.00 per hour in a single workweek, the total straight-time earnings would be $888.00. The weighted average hourly rate is determined by dividing the total earnings by total hours worked (46), which equals $19.30. Since the employer has already paid straight-time wages for all hours worked, only an additional 0.5 times the weighted hourly rate is due for the overtime hours:
0.5 x $19.30 x 6 overtime hours = $57.90 in overtime pay.
When is Overtime Due?
In Oregon, overtime is generally required when an employee works more than 40 hours in a single workweek. A workweek is a fixed and regularly recurring period of seven consecutive 24-hour periods, which may start on any day and time designated by the employer. Pay periods do not determine overtime; instead, overtime is calculated based on a recurring seven-day workweek.
Special Overtime Rules
- Manufacturing employees must receive overtime after 10 hours in a single day.
- Special overtime provisions apply to certain work contracted for by government agencies, public works projects, canneries, and some hospital employees.
Exclusions from Regular Rate of Pay
Certain payments do not count toward the regular rate of pay for overtime calculations, including:
- Expense reimbursements
- Premium pay for Saturday, Sunday, or holiday work
- Discretionary bonuses
- Gifts for special occasions
Overtime for Salaried Employees
Salaried employees must be paid overtime unless they meet the legal requirements for exempt status. Misclassifying employees as exempt may result in liability for unpaid overtime, and it is the employer’s responsibility to prove an employee’s exempt status.
Other Key Considerations
- Employers may require employees to work overtime and may discipline employees who refuse.
- Overtime is calculated based on hours actually worked. Paid time off, such as sick leave or vacation, does not count toward overtime calculations.
- Private-sector employers cannot offer “comp time” instead of paying overtime.
- Employers can adjust an employee’s hours within a single workweek to keep them under 40 hours and avoid overtime.
- Unauthorized overtime must still be paid, but the employer may discipline employees who violate overtime policies.
Oregon’s overtime laws contain industry-specific provisions. Employers should refer to the Oregon Wage and Hour Laws Handbook for additional details on special rules and exemptions.
Who's Eligible For Overtime Pay in Oregon?
Generally, any employee earning pay on an hourly basis will be eligible for overtime pay in Oregon. Most employers must pay overtime at the rate of 1.5 times the worker’s regular pay rate for all hours worked over 40 in a workweek.
While overtime laws generally cover employees earning hourly wages, Oregon’s wage and hour laws require all salaried employees earning less than the federal minimum salary threshold of $684 per week ($35,568 per year) to be paid overtime for all hours worked beyond 40 in a workweek.
Salaried employees may be exempt from Oregon’s overtime laws if their roles meet these three criteria:
- They must earn more than $35,568 per year ($684 per week).
- Their salary must not be subject to deductions based on the quantity or quality of their work.
- They must perform work requiring their “exercise of discretion” and/or “independent judgment” for at least 50% of their working hours — it must be a “genuine primary duty.”
As mentioned above, salaried employees in these three types of roles whose duties and pay meet the criteria specified above are exempt from overtime rules. These roles have management and/or leadership functions as part of their core duties.
All state and local government employees are considered exempt from Oregon’s overtime laws.
Every employee who must spend at least 50% of their work time away from their employer’s place of business to sell tangible items or services is exempt from overtime pay requirements.
Anyone employed as a driver in the state of Oregon can be considered exempt from the state’s overtime laws if their hours are regulated by the U.S. Department of Transportation (DOT).
If an employee has signed onto a collective bargaining agreement that stipulates wages, hours of work, and working conditions and provides premium wage rates higher than Oregon’s minimum wage, they may be considered exempt from Oregon overtime laws.
As of January 1, 2025, agricultural employers are required to pay overtime to workers after they work 48 hours in one workweek. By January 1, 2027, the threshold will be reduced to 40 hours per workweek. However, certain agricultural workers are exempt from overtime, including:
- Immediate family members of the employer.
- Local hand harvest or pruning workers paid piece rate who worked fewer than 13 weeks in the previous year.
- Migrant hand harvest workers 16 or younger paid the same piece rate as older workers.
- Workers mainly engaged in the range production of livestock.
- Piece-rate workers for small employers (fewer than 500 workdays of agricultural labor in a quarter).
- Employees whose primary duties are executive, administrative, or professional and meet salary and duties tests.
Oregon has specific overtime rules for manufacturing workers:
- Workers not processing perishable goods: Can be scheduled up to 55 hours per week, with written consent required beyond 55 hours up to a maximum of 60 hours per week.
- Workers processing perishable goods: May work up to 80 hours per week for up to 21 weeks per year under undue hardship, with four of those weeks allowing up to 84 hours.
- Seafood processing workers: No maximum hours, but overtime applies after 10 hours per day and 40 hours per week.
- Bakery and tortilla factory workers: Employers cannot take adverse action for refusing mandatory overtime unless five days’ advance notice is provided.
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OR vs. Federal Overtime Laws Compared
40 Hours / week Oregon Overtime Threshold
Oregon’s overtime laws align with federal requirements for most industries. Any eligible employee working more than 40 hours in a single workweek is entitled to overtime pay at 1.5 times their regular rate of pay.
However, certain industries, such as manufacturing establishments, have additional daily overtime rules. Employees in these industries must receive overtime pay if they work more than 10 hours in a single workday.
For agricultural workers, starting January 1, 2025, employers must pay overtime after employees work 48 hours in a workweek.
40 Hours /weekFederal Overtime Threshold
Under the federal Fair Labor Standards Act (FLSA), all non-exempt employees are entitled to overtime pay for all hours worked in excess of 40 per workweek.
For the FLSA’s purposes, a “workweek” is defined as a fixed and regularly-occurring period of 168 hours, or seven consecutive 24-hour days. These workweeks may be set for any seven-day stretch and do not need to coincide with ordinary calendar weeks.
1.5xOregon Overtime Rate
Oregon follows the federal standard for overtime pay, requiring employers to pay eligible employees 1.5 times their regular rate of pay for hours worked over 40 in a workweek.
Additionally, employees in manufacturing establishments receive overtime pay after 10 hours in a single workday. Some government, public works, and hospital workers have different overtime rules.
1.5xFederal Overtime Rate
The FLSA requires overtime pay at a rate of 1.5 times an employee’s regular hourly rate for hours worked beyond 40 in a workweek. There are no higher rates for excessive hours or specific professions under federal law.
N/AOregon Overtime Threshold for Salaried Employees
Oregon law does not specify a separate salary threshold for overtime exemption. Instead, it follows federal guidelines for exempt employees.
$58,656 / yearFederal Overtime Threshold for Salaried Employees
Starting January 1, 2025, the federal wage threshold exempting roles from overtime pay is set at $1,128 per week, equivalent to $58,656 per year.
Employees earning less than this amount are generally eligible for overtime pay unless they qualify for an exemption under FLSA regulations.
ORRoles Exempt from Overtime
Oregon follows federal overtime exemption rules but has additional industry-specific exemptions. Some workers who may not be entitled to overtime under Oregon law include:
- Certain agricultural workers (though new overtime rules take effect in 2025)
- Some hospital and healthcare employees
- Public works contractors under specific agreements
- Manufacturing employees under certain conditions
- Certain salaried administrative, executive, and professional employees
FederalRoles Exempt from Overtime
Federal overtime law exempts certain roles from overtime pay:
- Executive, administrative, and professional employees earning more than the threshold
- Computer-related employees
- Outside sales employees
- Highly compensated workers earning more than $151,164 per year, of which at least $1,128 must be paid on a salary or fee basis per week
Misconceptions About OR Overtime Laws
Many employers believe overtime laws in Oregon only apply to workers earning hourly pay and do not affect salaried employees.
While overtime laws in Oregon primarily cover hourly employees, some salaried employees may also be eligible for overtime pay. Salaried employees earning less than $35,568 per year are entitled to overtime for all hours worked over 40 in a workweek. Additionally, eligibility depends on job duties, not just pay structure.
Other Key Considerations
- Employers may require employees to work overtime and may discipline employees who refuse.
- Overtime is calculated based on hours actually worked. Paid time off, such as sick leave or vacation, does not count toward overtime calculations.
- Private-sector employers cannot offer “comp time” instead of paying overtime.
- Employers can adjust an employee’s hours within a single workweek to keep them under 40 hours and avoid overtime.
- Unauthorized overtime must still be paid, but the employer may discipline employees who violate overtime policies.
Oregon’s overtime laws contain industry-specific provisions. Employers should refer to the Oregon Wage and Hour Laws Handbook for additional details on special rules and exemptions.
Some employers assume that every employee in Oregon is eligible for overtime pay, regardless of job type, industry, or compensation structure.
Not all employees in Oregon are covered by overtime laws. Exemptions exist for specific roles, such as certain salaried executive, administrative, and professional employees, DOT-regulated drivers, outside salespeople, and some agricultural workers. Employees covered by collective bargaining agreements may also have different overtime rules.
Some employers believe they can establish their own overtime policies that differ from Oregon state law.
Oregon employers cannot override state-mandated overtime laws with their own policies. The only exception is when a collective bargaining agreement explicitly outlines overtime policies that comply with or exceed state law.
Since the federal Fair Labor Standards Act (FLSA) calculates overtime on a weekly basis, many employers assume Oregon follows the same rule without exception.
While most Oregon employees qualify for overtime after working more than 40 hours in a workweek, certain industries have additional daily overtime rules. For example, employees in canneries, driers, and packing plants must receive overtime pay after 10 hours in a single workday. Similarly, manufacturing workers must be paid overtime after 10 hours in a workday or 40 hours in a workweek, whichever is more beneficial to the employee.
Many assume that Oregon’s overtime rate is a flat 1.5 times an employee’s regular hourly pay, similar to federal law.
Oregon does follow the standard overtime rate of 1.5 times a worker’s regular hourly pay. However, unlike some states such as California, Oregon does not have a double-time rate for excessive hours worked. Certain industry-specific overtime rules may result in unique calculations, but the base rate remains 1.5 times the employee’s normal pay for overtime hours.
Penalties for Overtime Noncompliance in OR
$2,000 – $3,000 per violationFailure to Pay Correct Overtime or Coercion to Work Excessive Hours
Oregon employers must comply with overtime laws, including proper payment and adherence to hour limits. If an employer coerces an employee into working more than 55 hours per week without valid written consent, they may face civil penalties:
- $2,000 per violation for coercing an employee into consenting to work more than 55 hours per workweek.
- $3,000 per violation if coercion occurs during an undue hardship period. Each workweek’s violation is considered a separate offense, leading to cumulative penalties.
Up to $1,000 per violation General Overtime Violations
Employers who fail to pay overtime wages for hours worked beyond 40 in a workweek or violate industry-specific overtime regulations, such as those for canneries, driers, and packing plants, may face civil penalties up to $1,000 per violation. The actual penalty amount depends on various factors considered by the Bureau of Labor & Industries (BOLI).
Additional Penalties for Coercion Manipulation to Obtain Consent
If an employer is found to have coerced an employee into working overtime by requiring written consent, making consent a condition of employment, or pressuring another person to obtain consent, additional penalties may be imposed. These penalties apply on top of any other legal repercussions.
Additional Legal ConsequencesCivil Penalties
Civil penalties assessed for overtime violations in Oregon are enforced under ORS 653.265 and administered by BOLI. These penalties are in addition to any unpaid wages owed and any other legal consequences an employer may face under labor laws.
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Navigating Overtime Requirements in Oregon
Know What to Do as an Employer
- Stay informed about Oregon overtime laws, including the classifications of exempt and non-exempt employees and the conditions under which overtime pay is required.
- Use reliable systems to track employees’ work hours, including overtime, and ensure compliance with Oregon’s overtime laws.
- Train HR and managerial staff on overtime requirements to avoid costly misclassifications and payroll errors.
- Regularly audit payroll practices to confirm that overtime pay calculations, including commissions and bonuses, are accurate.
- Maintain detailed records of employees’ work hours, pay, and overtime calculations. These records can be essential in case of a dispute or audit.
- Establish clear, written policies regarding overtime and communicate them effectively to employees to prevent misunderstandings.
- Consult with labor law experts to ensure your business stays compliant with Oregon’s specific overtime regulations and any legal updates.
Know Your Rights as a Worker
- Determine whether you are classified as an exempt or non-exempt employee, as this affects your eligibility for overtime pay.
- Keep personal records of your work hours, including overtime, to ensure accuracy in your paycheck.
- Understand how overtime pay is calculated, particularly if commissions, bonuses, or shift differentials apply to your earnings.
- Familiarize yourself with Oregon overtime laws, including specific industry regulations such as those for manufacturing employees, who receive overtime after 10 hours in a day.
- If you notice discrepancies in your overtime pay, raise the issue with your employer first, as many issues can be resolved internally.
- If internal resolution fails, seek assistance from labor rights organizations or legal counsel to protect your rights under Oregon’s overtime laws.
Common Overtime Pay Challenges for Employers in Oregon
1. Misclassification of Employees
Misclassifying workers as independent contractors or exempt employees is a prevalent issue in Oregon that can result in significant penalties and back wages. This practice creates unfair competition for compliant businesses and reduces state revenue from payroll taxes.
2. Industry-Specific Overtime Rules
Oregon has varied overtime requirements across different industries that create compliance challenges. While the standard 40-hour threshold applies broadly, certain sectors like canneries and agriculture have unique regulations.
3. Inadequate Recordkeeping
Many Oregon employers fail to maintain proper documentation of hours worked, break periods, and overtime. Without detailed records, employers may find themselves unable to defend against overtime claims.
4. Unauthorized Overtime Complications
Under Oregon law, employers must pay for all overtime hours worked, even when not pre-approved. This creates situations where employers must pay for unbudgeted labor while addressing policy violations.
Best Practices for Oregon Overtime Laws
1. Properly Classify All Employees
Employers should regularly review and accurately classify workers based on Oregon’s legal standards to avoid significant financial penalties. Misclassification can save nearly $5 per $100 in payroll costs in state unemployment insurance alone, creating a tempting but illegal cost-cutting measure. Regular classification audits, particularly for positions with ambiguous status, can prevent costly violations.
2. Understand and Apply Industry-Specific Rules
Oregon employers must familiarize themselves with overtime requirements specific to their industry, as manufacturing, canneries, and agriculture have different thresholds. Agricultural employers should be especially attentive to the phased implementation of overtime rules, with the threshold dropping to 48 hours in 2025 and eventually to 40 hours by 2027. Creating industry-specific compliance protocols helps ensure adherence to these varied requirements.
3. Implement Robust Timekeeping Systems
Establishing reliable systems to track all hours worked by non-exempt employees is essential for compliance with state and federal regulations. Digital timekeeping solutions can help automate this process, reducing human error and providing clear documentation in case of disputes. These records must be retained according to legal requirements and be easily accessible for reporting purposes.
4. Ensure Accurate Overtime Calculations
Oregon employers must calculate overtime at 1.5 times the employee’s regular rate of pay, including adjustments for bonuses, commissions, or shift differentials. Employers should train payroll staff thoroughly and consider implementing specialized software that accounts for these variables. Proper calculation prevents costly errors that could lead to unpaid wages and potential penalties.
5. Establish Clear Overtime Policies
Creating written policies regarding overtime approval, recording, and compensation helps both employers and employees understand expectations. While employers can require advance approval for overtime, policies should address how unauthorized overtime will be handled, noting that all hours worked must be paid regardless of prior approval. Regular training ensures consistent application throughout the organization.
Final Thoughts
Oregon’s overtime laws provide critical protections for employees while requiring employers to maintain accurate records, follow proper pay calculations, and comply with industry-specific regulations. Understanding these laws is essential to avoiding costly penalties and ensuring fair compensation for workers.
Managing overtime compliance can be complex, especially with special rules for industries like manufacturing and agriculture. However, the right workforce management tools can simplify the process by automating time tracking, ensuring accurate overtime calculations, and providing detailed reporting.
Employers looking to stay compliant and streamline their operations can benefit from solutions like Workyard can simplify your overtime compliance by automating time tracking, ensuring accurate overtime calculations, and providing detailed reporting. With Workyard, employers can confidently manage their workforce while minimizing the risk of costly errors.
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