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 2026 updates include new minimum wage rates effective July 1, 2026 (Portland Metro $16.80/hr, Standard $15.55/hr, Non-urban $14.55/hr), while the agricultural overtime threshold remains at 48 hours per workweek — the next scheduled decrease, to 40 hours, doesn’t take effect until January 1, 2027.
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 summarizes the key provisions affecting overtime calculations across Oregon.
| Change Area |
2026 Update / Detail |
| Regional Minimum Wage (affects regular rate used for OT) |
For work performed July 1, 2026–June 30, 2027: Portland Metro $16.80/hr; Standard $15.55/hr; Non-urban $14.55/hr — each up roughly $0.50 from the prior cycle. Oregon still prohibits any tip credit; tips cannot be counted toward minimum wage. |
| Agricultural Overtime (HB 4002) |
Threshold remains 48 hours/week for 2026 — the next scheduled drop to 40 hours doesn’t take effect until January 1, 2027, so no change from last year yet. The Agricultural Employer Overtime Tax Credit (AEOTC) under ORS 315.133 remains active: refundable credits of 60% for small nondairy farms (≤25 FTE), 100% for small dairy farms, 50% for mid-sized farms (26–50 FTE), and 30% for larger nondairy farms (>50 FTE), within a statewide $55 million annual cap. The 2026 application window ran January 1–February 2, 2026. |
| Manufacturing Daily OT & Hour Limits |
Unchanged: daily overtime after 10 hours and weekly overtime after 40 hours — employees receive the greater amount, not both. Manufacturing employees still may not work more than 13 hours in a 24-hour period, with at least 10 hours of rest required after 8+ hour shifts; standard weekly cap is 55 hours (60 with written consent), and up to 80–84 hours under “undue hardship” rules for perishable-goods processing. Bakeries and tortilla manufacturers (NAICS 3118) still require 5 days’ advance notice before mandatory overtime shifts, per SB 1513 (in effect since 2023 — not a new 2026 change, but worth keeping in this row since it’s still current law). |
| 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.
| Aspect |
Federal (FLSA) |
Oregon State Law |
| Overtime Threshold |
>40 hrs/week |
>40 hrs/week (general); agriculture >48 hrs/week in 2025; manufacturing daily OT after 10 hours; canneries daily OT after 10 hours. |
| Daily Overtime |
No (general) |
Yes, for manufacturing and certain processing facilities; generally no daily OT elsewhere. |
| Double Time |
Not required |
Not required by statute (unless contract/CBA). |
| OT Rate |
1.5× regular rate |
1.5× regular rate. |
| Leave Hours Counted? |
No |
No (OT based on hours actually worked). |
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.
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