Overtime laws are designed to ensure that employers pay workers the correct amount for overtime hours worked. Not only do these laws help level the playing field for workers, but they also protect the workplace from dangerous and expensive lawsuits. If you’re an employer in Oregon, it’s imperative to abide by these laws to avoid the potentially huge cost of unpaid overtime and expensive claims. Without following Oregon’s labor laws, you could end up paying double the amount you would have been liable to pay otherwise.
Exemptions from overtime pay in Oregon
Some employees in Oregon do not have to be paid overtime. Under the Oregon law, most truck drivers, agricultural workers, and motion picture theater workers are exempt from overtime pay. Certain employers, such as hospitals and nursing homes, can opt to pay overtime for employees who work over eight hours a day. Domestic workers in Oregon are also entitled to overtime pay if they work at least forty hours a week. In some cases, employees are misclassified as independent contractors to avoid paying social security taxes or worker’s compensation.
The state has passed several new laws relating to labor. For example, legislation passed in the last session addresses issues related to agricultural workers’ eligibility for overtime, manufacturing employees’ notice of mandatory overtime shifts, and pending bills regarding workers’ compensation overpayments. These new laws affect many Oregon employers, and you may want to review them as you plan your overtime policy for the coming year. Further, there are other important issues related to labor that you should consider.
Exemptions for perishable products
If you’re wondering whether or not your employees are exempt from overtime laws, you should read on. These exemptions apply to jobs that produce products that spoil, change in composition, or are otherwise perishable. This includes agricultural products, meat, and fish. These employees may be exempt from overtime if they work within a “due hardship period.”
The undue hardship period exemption applies to employers that process perishable products. This exemption allows employees to work up to 84 hours per workweek for four workweeks. They may also be allowed to work up to 80 hours during the rest of the hardship period. To qualify for the undue hardship exemption, employers must submit a written notice to the BOLI and obtain written consent from all affected employees. The BOLI will provide guidance and prescribe a notice form for affected employers.
Another Oregon overtime law exemption applies to processing perishable goods. This law revises the maximum weekly work hours for manufacturing establishments. A manufacturing employer may not require its employees to work more than 55 hours per week; however, an employee may request up to 60 hours of overtime. If the employee declines, the employer cannot discipline them. The new overtime laws exemptions for perishable products are effective immediately.
Exemptions for salaried employees
The Oregon overtime laws protect some types of salaried employees from mandatory overtime pay. These employees may include most agricultural workers, taxicab drivers, and newspaper carriers. Salespeople in retail or service positions may also be exempt, provided that they spend at least 20% of their time on non-work-related activities. Other employees are not covered by the overtime laws, including domestic workers who live in the household where they work.
Paychecks for salaried employees may be prorated if they need to take time off for personal reasons. However, exempt employees may have their paychecks reduced for jury duty, military service, or other reasons. In addition, employers may not reduce the salary of salaried employees for disciplinary reasons, such as when an employee is suspended. In addition, employers can’t deduct expenses for uniforms or tools that an employee uses for work.
Calculating overtime pay
The first step in calculating overtime pay is defining your position’s workweek. Oregon overtime laws define a workweek as seven consecutive 24-hour days. Oregon also requires that you pay yourself 11/2 times your regular rate of pay when you work over forty hours. If you work over forty hours in one week, you can earn up to two-and-a-half times your regular rate of pay. In Oregon, this is known as a double-time rule.
For most employees, calculating overtime pay is easy. To calculate the amount of overtime you should be paid each week, you need to divide the number of hours you worked during the week by your regular rate. For example, if you worked for 40 hours and were paid $15 an hour, you would be entitled to a two-hour increase if you worked an extra two-hour-per-day. But if you worked more than forty hours in a week, your regular rate would be double that amount.