What’s New in Oregon Overtime Law
Oregon continues to apply weekly overtime after 40 hours, with important industry-specific rules and regional minimum wage rates that affect how overtime is calculated. Key 2025 updates include new minimum wage rates effective July 1, 2025, and the agricultural overtime threshold decreasing to 48 hours per workweek beginning January 1, 2025.
Overview of Oregon Overtime Laws
- Standard Overtime Rate: Non-exempt employees earn 1.5× their regular rate for hours over 40 in a workweek.
- No General Daily Overtime: Except in specific sectors (e.g., manufacturing; certain canneries), Oregon does not require daily OT.
- No State-Mandated Double Time: State law requires time-and-a-half (not double time), unless a contract/CBA says otherwise.
- Agricultural Worker Threshold: OT after 48 hours/week in 2025 (phasing to 40 hours in 2027).
- Leave Hours: Vacation, sick, and holiday hours generally do not count toward overtime; OT is based on hours actually worked. Private employers may not substitute “comp time” for OT.
The following table summarises the key provisions affecting overtime calculations across Oregon.
| Change Area | 2025 Update / Detail |
| Regional Minimum Wage (affects regular rate used for OT) | For work performed July 1, 2025–June 30, 2026: Portland Metro $16.30/hr; Standard $15.05/hr; Non-urban $14.05/hr. Oregon prohibits any tip credit; tips cannot be counted toward minimum wage. |
| Agricultural Overtime (HB 4002) | As of Jan 1, 2025, overtime due after 48 hours in a workweek (down from 55). Threshold decreases to 40 hours Jan 1, 2027. A state tax credit may be available to eligible agricultural employers under ORS 315.133. |
| Manufacturing Daily OT & Hour Limits | Daily overtime after 10 hours and weekly overtime after 40 hours—employees receive the greater amount (not both). Manufacturing employees may not work more than 13 hours in a 24-hour period; special weekly hour caps and “undue hardship” rules apply for perishable products. |
| Canneries, Driers & Packing Plants | Time-and-a-half after 10 hours/day or 40/week (whichever is greater). Separate weekly hour limits and undue hardship options may apply. |
| Public Works (Prevailing Wage Rate projects) | On most PWR projects, daily overtime generally applies after 8 hours/day Monday–Friday, even if 40 hours/week not reached (special “four-ten” scheduling rules may apply). |
Eligibility for Overtime
Not every worker in Oregon is automatically eligible for overtime. The rules distinguish between non-exempt and exempt employees:
Non-Exempt Employees
Eligible for overtime after 40 hours in a workweek (or sector-specific thresholds), regardless of pay method.
Exempt Employees
Must meet both the salary and duties test similar to FLSA, including:
- Executives
- Administrators
- Professionals
- Outside salespersons
- Certain computer professionals
Industry-Specific Rules/Exceptions
- Manufacturing: Daily OT after 10 hours; 13-hour daily cap; greater-of daily vs weekly OT pays.
- Canneries/driers/packing plants: Daily OT after 10 hours or weekly OT after 40 hours—whichever is greater.
- Agricultural workers: OT after 48 hours/week in 2025; daily OT may apply if operations constitute “manufacturing.”
- Public works (PWR): Often daily OT after 8 hours/day Monday–Friday.
- Tipped employees: No tip credit in Oregon; must receive the full applicable minimum wage before OT is calculated.
Oregon Federal vs. State Overtime Rules
Oregon’s overtime rules align with the FLSA in many respects, with notable Oregon-specific provisions for manufacturing, canneries, and agriculture.
Example: If an employee works 45 hours in a week at $20/hr
- Federal law: 40 × $20 = $800, plus 5 × ($20 × 1.5) = $150. Total = $950.
- Oregon general rule: Same as federal (OT after 40/week). Oregon also has daily OT in specified sectors (e.g., manufacturing) and a different weekly threshold for agriculture in 2025.
Example:
Exemptions in Oregon
Oregon law exempts several categories of workers from overtime, often overlapping with federal exemptions. Common exemptions include:
- Executive, administrative, and professional employees who meet salary and duties tests.
- Outside salespersons primarily making sales off-site.
- Certain computer professionals paid on a salary or fee basis and meeting duties criteria.
- Narrow industry carve-outs (e.g., specific roles in manufacturing emergencies/repairs; some collectively bargained manufacturing employees for daily OT).
Employers should carefully evaluate whether an employee truly qualifies as exempt. Misclassification can result in significant liability.
Employer Obligations and Employee Rights
- Timely payment: Overtime wages must be paid on the regular payday for the pay period in which the overtime was worked; paydays may not be more than 35 days apart.
- Recordkeeping: Employers must track hours worked each day for non-exempt employees and provide an itemized pay statement with each payment.
- Wage claims: Workers can file a wage claim with BOLI if they believe they have not been paid correctly.
- Penalties & enforcement: Statutes and rules provide for penalties, damages, and administrative enforcement when employers fail to comply.
- Protection against retaliation: Oregon law prohibits retaliation for asserting wage and hour rights.
Employees can also pursue private lawsuits for unpaid overtime in addition to filing state claims.
Got questions?
Overtime applies after 40 hours in a workweek at 1.5× the regular hourly rate (with specific sector rules noted above).
Generally, no—except in manufacturing (and certain processing facilities), where daily OT applies after 10 hours and workers receive the greater of daily vs. weekly OT for the week.
As of Jan 1, 2025, agricultural overtime is due after 48 hours in a workweek; the threshold drops to 40 hours in 2027.
Oregon does not allow a tip credit. Employers must pay the full applicable minimum wage before calculating OT.
No. Unless a policy/CBA provides otherwise, OT is based on hours actually worked; paid leave and holidays do not count toward the 40-hour threshold.