Overtime Laws in Oregon

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.

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:

• A retail worker in Oregon who works 50 hours must be paid 10 hours of OT at 1.5×.
  
• A manufacturing employee who works 12 hours in a day may be owed daily OT even if total weekly hours are under 40; employer pays the greater of daily vs. weekly OT for the workweek. 

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.