Oregon Overtime Law: The Complete Guide for 2025

Since the enactment of the Fair Labor Standards Act (FLSA), Oregon employers are expected to pay their employees at an overtime rate for every hour of work done beyond the standard 40 hours per week. A workweek does not need to be from Monday to Friday, but can't be more than 40 hours long. Oregon's overtime payment rules also vary depending on the industry, the employee's position, and pay rate.

Overtime is one of the many types of Oregon Labor Laws employers must comply with. It's important for employers to understand not just Oregon overtime, but all of the state and federal labor laws and pay rules that are applicable, and put policies in place to ensure compliance across the board. 

Employers who are struggling with controlling overtime, and ensuring that the right people are on the job at all times, may want to consider employee scheduling solutions, which can help ensure productivity with schedules built for efficiency and overtime control.

Oregon Overtime Overview

According to Oregon overtime law, eligible employees must be compensated at an overtime pay rate of 1.5x an employee's regular pay rate for any time an employee worked over 40 hours in a standard work week.

However, this may not apply to all employees, as some employees may be categorized as ineligible, or "exempt" from overtime when looking at an employee's FLSA status to determine overtime eligibility.

It's also important to note that special overtime rules or provisions in Oregon may exist based on an employer's industry or business type.

Oregon Overtime Compensation & Pay

An hourly employee's overtime pay rate is simply the standard pay rate multiplied by 1.5x, or: 

Standard Pay Rate multiplied by 1.5x = Overtime Pay Rate

When it comes to determining the standard pay rate of a salaried employee, the hourly pay rate must first be calculated using the following method:

Annual Salary divided by 52 weeks = Weekly Pay
then
Weekly Pay divided by 40 hours = Hourly Pay Rate

When calculating a salaried employee's hourly pay rate all forms of compensation must be included, except for the following:

• Expense reimbursements
• Premium pay for weekends and holidays
• Discretionary bonuses
• Gifts for special occasions

Oregon Overtime Eligibility

Oregon classifies whether or not employees are eligible for overtime based on exempt status.  

Exempt employees, those that do NOT qualify for overtime are generally categorized as executive, administrative, or professional employees. Exempt employees are typically referred to as “white-collar” or “salaried exempt”.

Non-exempt employees are those that do qualify for overtime and are subject to minimum wage requirements.

Exempt employees in Oregon must meet requirements for one of the following duties tests and the salary test below. Not meeting the requirements would mean the employee is non-exempt.

Executive Duties Test

The following duties and responsibilities are those that are classified as exempt employees under the executive duties test:

• The employee manages the enterprise where he or she is employed
  • Generally means more than 50 percent of the work time is spent doing management tasks
• The employee is paid a significantly higher salary than non-exempt staff
• The employee makes frequent management decisions and is not supervised directly
• Supervising two or more full-time employees
• Have the authority to hire or fire
  • If the employee does not have the authority to hire or fire, their recommendations hold significant weight
• Customarily and regularly exercise authority to make decisions of significance

Administrative Duties Test

The following duties and responsibilities are those that are classified as exempt employees under the administrative duties test:

• Performing office or non-manual work related to management or general business operations for the employer or the employer’s customers
• Work must be distinguished from production or sales work and is limited to duties directly related to the running of a business and not merely carrying out day-to-day activities
• The performance of functions within an administration of a school system, educational establishment, or institution including any departments or subdivisions thereof, in work directly related to the academic instruction or training
• Customarily and regularly exercise authority to make decisions of significance
• Perform management duties as an advisory specialist, department head; or as a special assignment employee such as a human resources manager

Professional Duties Test

There are three types of professional categories, learned, creative, and teachers or tutors.

The following duties and responsibilities are those that are classified as exempt employees under the professional duties test:

• Learned professionals:
  • Work requiring advanced knowledge in a field of science
  • Work requiring the study of specialized skills gained from intellectual instruction and study (such as college)
• Creative professionals:
  • Work that is original and creative in character 
  • Must be in a recognized artistic field
  • The work must primarily depend on the invention, imagination, or talent of the employee
• Teachers and tutors:
  • Teaching, tutoring, instructing, or lecturing with the intent to educate
  • Must be employed in a school or educational system or establishment
• Work must require the consistent exercise of discretion and judgment
• Work must be predominantly intellectual and varied in character
• Work must be of such character that the result accomplished cannot be standardized on a basis of time

Salary Test

Outside of these duties tests, the employee must also pass the salary level test. This involves the employee meeting a minimum salary requirement in order to be exempt from overtime, regardless of the results from the duties tests.

On November 15, 2024, the U.S. District Court for the Eastern District of Texas invalidated a U.S. Department of Labor (DOL) regulation that raised the salary threshold for the "white-collar" overtime exemption under the Fair Labor Standards Act (FLSA). This decision applies nationwide, rendering the rule ineffective.

As a result of the court ruling, the overtime exempt salary threshold for 2025 and the foreseeable future is $684 per week ($35,568 annually). This threshold reflects the most recent update that is still in effect, made in 2019.

To learn more about the FLSA, click to access the FLSA Guide here. For more help on classifying employees under FLSA guidelines, click through to see this article. 

Overtime Exemption in Oregon for Undue Hardship

Oregon employers may be exempt from the standard maximum hours worked requirement, if their typical business manufactures perishable products. 

In this instance, employers may allow employees to work up to 84 hours in a workweek for up to four weeks. After that, they may allow employees to work up to 80 hours for the remainder of the undue hardship period. 

Employers may claim more than one undue hardship period in a year, but may not use more than 21 workweeks in a year. 

Perishable products are defined as any product that may spoil, deteriorate or undergo other material changes that render it unsuitable for the use for which it was produced. This includes things such as crops, meat, and fish. 

Employers must file a notice with the Oregon Bureau of Labor and Industries (BOLI) in order to apply for an undue hardship period.

Oregon Overtime Provisions and Rules by Industry

Oregon overtime, for the most part, follows closely with the standards set by the FLSA. While employers should have a solid grasp and understanding of Oregon's general overtime provisions, it's important for employers to ensure whether or not there are industry-specific overtime laws that apply to the organization's employees.

Here are industries that have specific overtime rules or provisions in the Oregon:

• Canneries 
• Seafood processors 
• Manufacturing 
• Some agricultural employers
• Correctional facility nursing staff
• Domestic workers

More detail on the overtime provisions for each of these industries can be found below.  

Oregon Canneries Overtime

Special rules apply to employees who work overtime for Oregon canneries, driers, and packing plants that are not located on farms. However, these places of work must also primarily process products produced on farms.

Employers in this industry are required to be paid for any hours worked over 10 in a day or 40 hours in a workweek at one and one-half times the employee's regular rate of pay. Employers must also pay the greater amount of daily or weekly overtime earned. 

While there is no daily limit for how many hours an employee may work in a day at one of these places of work, they may not work more than 55 hours in a week. There is an exception to this rule if the employee gives a written request or consent to work more than 55 hours. Even still an employee may not work for more than 60 hours in a workweek.

Oregon Seafood Processors Overtime

When it comes to Oregon seafood processors and overtime, the rules that apply are the same as Oregon canneries, with one exception.

Unless the facility in which seafood is processed meets the definition of a manufacturing establishment, then any non-exempt employees are entitled to the same hourly overtime requirements as Oregon canneries, with the exception of the maximum-hours-worked rule.

Oregon Manufacturing Overtime

Special rules apply to employees who work overtime in the Oregon manufacturing industry as well. All hours over 10 in a day, and 40 in a workweek are overtime hours, and must be compensated at one and a half times the employee’s regular rate of pay.

Employers must also pay employees the greater amount of overtime, whether it be the amount calculated on a daily or weekly basis. 

In this industry, employees may not work for more than 13 hours in a single day. Employees are also entitled to receive a minimum of 10 hours of rest after any shift that lasts at least 8 hours. 

Employees may not work more than 55 hours a week. There is an exception to this rule if the employee gives a written request or consent to work more than 55 hours. Even still an employee may not work for more than 60 hours in a workweek.

Oregon Agricultural Overtime

Oregon overtime defines agriculture as all types of farming and farm work and includes activities such as:

• Cultivating and tilling soil 
• Dairying
• Producing, cultivating, growing, and harvesting crops
• Raising livestock
• Beekeeping
• Fur collection 
• Poultry farming 
• Preparing for market
• Delivering products to storage or market 

If the agricultural work also falls under the definition of manufacturing, then manufacturing overtime rules would apply. And it's important to note that any canneries on a farm fall under agricultural overtime rules. 

Oregon agricultural overtime applies to some agricultural employees. In fact, workers engaged in agricultural employment for 100 percent of the workweek are exempt from overtime.

Employees who handle products not grown by their employer or do not work within the definition of agriculture are due overtime after 40 hours in a workweek. Employees who process or handle any amount of another farmer’s crop are entitled to overtime as well. 

Employees who are eligible for agricultural overtime must be compensated at one and a half times their regular rate of pay.

Oregon Correctional Facility Nursing Staff Overtime

Oregon also has overtime laws for correctional facility nurses.

Nurses in a correctional facility are not required to work overtime:

• Beyond the agreed, prearranged scheduled shift, regardless of the length
• More than 48 hours in a workweek
• More than 12 hours in any 24 hour period

Nurses must also be given, at minimum, a 10-hour break following any 12-hour shift.

There are some exceptions, however, where a nurse may work up to 4 additional hours, regardless of the previously stated rules. These exceptions include:

• A staff vacancy for the next shift becomes known at the end of the current shift
• There is a potential for harm to an assigned patient if the nursing staff member leaves the assignment or transfers care to another nursing staff member

There are also exceptions to overtime rules if the reason for overtime is an emergency. Emergency circumstances can include:

• Severe weather conditions
• An infectious disease epidemic suffered by correctional facility staff
• Any unforeseen event, including security lockdown procedures, that prevent the scheduled replacement from entering the facility
• If the correctional facility determines that the nursing staff scheduled and available for the next shift cannot ensure the health and safety of the patients at the facility

Oregon Overtime for Domestic Workers

According to the Domestic Workers' Protection Act, domestic workers are covered by the same overtime regulations as any other employee in the state of Oregon, with one exception. 

For domestic workers who also live in the employer's home, overtime does not begin accumulating until the employee works in excess of 44 hours in a workweek. 

A Final Thought for Oregon Employers 

One way to efficiently manage, calculate, and pay overtime is time and attendance tracking software, coupled with payroll software through integration or data exports / imports. Outsourcing payroll by partnering with an Oregon payroll company is also a great way to start ensuring overtime compliance and paying employees accurately.  

As mentioned, there are many other aspects of Oregon labor laws that employers should also be familiar with in addition to overtime. See the following list for other Oregon labor laws to research next:

• Oregon break laws and rest periods
• Oregon sick leave laws
• Oregon child labor laws
• Oregon OSHA 

Guest Author: Scott Herson-Hord

Scott Herson-Hord is the CEO of Great Northern Staff Administrators (GNSA), an Oregon payroll services company that specializes in serving small to mid-size businesses with administrative solutions to streamline back-office processes from benefits to human resources. Starting his career in finance and working more than 10 years as a controller for various companies, Scott leveraged this experience over the next 22 years with GNSA to become one of the pacific northwest’s foremost experts in human capital management (HCM).