Oregon Overtime Laws

Oregon is one of those states with its own overtime laws, while also following the federal Fair Labor Standards Act (FLSA). Oregon generally defines overtime as all hours an employee works in excess of 40 hours in one week. Employers must pay employees overtime wages for this time in the amount of 1.5 times their regular hourly pay. Oregon overtime laws also make employers pay their employees overtime wages on a daily basis.

Oregon Overtime Law Summary

Important provisions of Oregon overtime law are covered by this below table.

State and Federal Statutes

Overtime Calculation Methods:

  • Hourly: Pay time and a half (1.5 times the regular rate) for hours worked in excess of 40 hours per workweek.
  • Hourly Plus Bonus and/or Commission: Regular rate = Total hours times hourly rate, plus the workweek equivalent of the bonus and/or commission, divided by the total hours in the workweek; then pay half of that regular rate for each overtime hour.
  • Salary: Regular rate = Salary divided by the number of hours the salary is intended to compensate.
    • If the regular hours are less than 40: Add regular rate for each hour up to 40, then pay time and a half for hours over 40.
    • If the regular hours = 40: Pay time and a half for hours over 40.

Exempt from Overtime in Oregon

  • The following classes of employees are not entitled to overtime pay in Oregon (partial list)
    • Executives of companies
    • Administrative employees
    • Supervisors
    • Employees employed in forest fire fighting
    • Employees of any irrigation system district

Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.

Working "Off The Clock" in Oregon

Employers may try to circumvent Oregon overtime laws by having employees freely volunteer to work extra time that is not written down or recorded on time records, referred to hours worked "off the clock." Examples of off-the-clock work include:

  • Cleaning up a work place after the closing of business
  • Cashiers setting up their registers
  • Cashiers counting their registers at the end of the day
  • Any set up work to prepare a work place for business

Employers try to justify this unpaid time as a "favor" or not being able to pay for clean up or set up, but if this work fits the definition of overtime, overtime wages must be paid to these employees. Employees can seek unpaid overtime wages claims or late pay wages claims under Oregon law if this has happened to them.

Exemptions from Overtime in Oregon

In Oregon, all employees are by default non-exempt and entitled to overtime wages. An employer must prove that an employee is "exempt" from overtime by meeting specific requirements. In particular, an employee is exempt from overtime wages if the employer can prove:

  • The employee must be paid a salary; and
  • The employee performs the duties of an exempt employee

Under Oregon state law, exempt employees include:

  • Executives of companies
  • Administrative employees
  • Supervisors
  • Employees engaged in forest fire fighting
  • Employees of any irrigation system district
  • Employees of fire protection or law enforcement activities, including security personnel in corrections institutions
  • Employees engaged in the operation of a hospital
  • Members of the organized militia while on state active duty

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As can be seen by above, Oregon has a variety of variables and idiosyncracies that may be immediately apparent. If you feel you are entitled to any claims for overtime under Oregon law or want to understand Oregon overtime laws further, you can contact a local attorney for a free, no-obligation case review.

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