Oregon Overtime Laws Guide

Updated on Author: Sergei Lemberg

Updated on Author: Sergei Lemberg

If you work in Oregon, understanding overtime laws is essential to ensure fair compensation for your extra hours. Without a doubt, Oregon overtime laws protect employees from being overworked without proper pay.

In this article, we’ll cover the basics of what you need to know about these laws, who qualifies for overtime, how to calculate overtime pay, and what to do if your employer violates these laws.

Remember, knowing your rights empowers you to secure the overtime pay you deserve for your hard work and time spent.

What Are Oregon Overtime Laws?

Oregon follows the federal Fair Labor Standards Act (FLSA) for its overtime laws, with additional state-specific regulations. Therefore, this means most employees must receive overtime pay for hours worked over 40 in a workweek. The overtime pay rate is one and a half times the employee’s regular hourly rate. For example, if you earn $15 per hour, your overtime rate should be $22.50 per hour.

Oregon overtime laws require that non-exempt employees receive overtime pay. Hourly workers earning less than $684 per week ($35,568 annually) in non-exempt industries are entitled to overtime compensation. Your eligibility for overtime pay also depends on your specific job duties and the type of business you work in.

Starting in July 2024, the minimum wage in Oregon will vary by region. In the Portland area, the new hourly minimum wage will be $15.95. However, many counties in the Willamette Valley and along the Oregon coast will see a minimum wage of $14.70 per hour. In addition, the most rural areas of southern, central, and eastern Oregon, the minimum wage will be $13.70 per hour.

Who Qualifies for Overtime Pay?

Not all employees qualify for overtime pay. Moreover, the FLSA exempts certain employees based on their job duties and salary.

Common exemptions include:

  • Executive Employees: Managers who supervise at least two full-time employees and have hiring and firing authority.
  • Administrative Employees: Workers performing office or non-manual work related to management or business operations who exercise independent judgment.
  • Professional Employees: Employees requiring advanced knowledge, typically gained through education or specialized training.
  • Outside Sales Employees: Salespeople who work primarily outside the employer’s place of business.
  • Computer Employees: Certain computer professionals, such as systems analysts and software developers, earning at least $27.63 per hour.

How to Calculate Overtime Pay

To calculate overtime pay, you need to know your regular hourly rate. Divide your total weekly pay by the number of hours you worked. Then, multiply the regular rate by 1.5 to find your overtime rate. Multiply this overtime rate by the number of overtime hours worked.

For example:

  • You work 45 hours in a week.
  • Your regular hourly rate is $16.
  • Your overtime rate is $16 x 1.5 = $24.
  • You worked 5 overtime hours.
  • Your overtime pay is 5 x $24 = $120.

Overtime for Tipped Employees

Tipped employees in Oregon receive an overtime rate of 1.5 times their regular wage for each overtime hour worked. These employees earn a lower minimum wage, often relying on tips to meet the standard minimum wage.

Also, employers can use a “tip credit” system, paying tipped employees a reduced minimum wage, provided tips make up the difference. However, employers must base overtime pay calculations on the full Oregon minimum wage, ensuring fair compensation for overtime hours.

Overtime for Salaried Employees

In Oregon, certain salaried employees qualify for overtime pay. A salaried employee receives a fixed salary, regardless of hours worked. If you’re a salaried employee who works extra hours, you’re entitled to additional pay for those hours. To determine your overtime pay:

  1. Calculate the Hourly Rate: Divide the annual salary by the number of hours the salary covers.
  2. Determine the Overtime Rate: Use the formula: Hourly pay rate x Overtime Hours x Overtime Rate (1.5).

If your salary covers less than 40 hours in a workweek, the regular rate applies for each hour up to 40. Only hours beyond 40 qualify for the time-and-a-half overtime rate. Understanding these rules ensures you receive fair compensation for your extra work.

Common Violations

Unfortunately, some employers try to avoid paying overtime. Watch for these common violations:

  • Misclassifying Employees: Employers may wrongly classify employees as exempt to avoid paying overtime.
  • Off-the-Clock Work: Employers may ask employees to work off the clock, before or after scheduled hours.
  • Incorrect Calculation of Hours: Employers may not count all hours worked, including short breaks and preparation time.
  • Failing to Pay for Travel Time: Employers may not pay for travel time that should be counted as work hours.
  • Improperly Averaging Hours: Employers may average hours over two weeks to avoid paying overtime in one week.

What to Do if Your Employer Violates Overtime Laws

If you believe your employer isn’t paying you the overtime you deserve, take action. First, document everything. Additionally, keep records of your hours worked, pay received, and communications with your employer about overtime. Also, discuss the problem with your employer; they might correct the mistake. Remember, if this doesn’t resolve the issue, file a complaint with the Oregon Bureau of Labor and Industries (BOLI) or the U.S. Department of Labor’s Wage and Hour Division.

Statute of Limitations for Unpaid Overtime Claims in Oregon

In Oregon, you have two years from the date of the violation to file a claim for unpaid overtime wages. This means if you file a lawsuit today, you can only recover overtime wages for the past two years. If your employer has knowingly or willfully violated overtime regulations, the statute of limitations extends to three years. This extended period allows employees to seek compensation for a longer duration in cases of intentional misconduct.

How to File an Overtime Claim

Gather all necessary documents, such as pay stubs, time records, and employment contracts. Moreover, contact the appropriate agency and follow their process for submitting a complaint. Typically, you must fill out forms and provide evidence of unpaid overtime.

Legal Protections Against Retaliation

You are protected from retaliation if you file a complaint. Fortunately, your employer cannot legally fire you, demote you, or take negative action against you for asserting your rights under overtime laws. In addition, if you face retaliation, file a separate complaint for that issue.

Special Considerations for Certain Industries

Remember, that some industries have unique overtime rules. Healthcare workers, first responders, and certain government employees may have different regulations. Therefore, always take the time to familiarize yourself with the specific rules that apply to your job.

Seek Help

If you believe your employer has violated overtime laws, contact us for assistance. At Lemberg Law, our experienced legal team will evaluate your case for free. Call us at 475-277-2200 or complete our online form to get started. We can guide you through the process and help you get the compensation you are owed.

Sergei Lemberg

About the Author:

Sergei Lemberg is an attorney focusing on consumer law, class actions related to automotive issues, and personal injury litigation. With nearly two decades of experience, his areas of practice include Lemon Law (vehicle defects), Debt Collection Harassment, TCPA (illegal robocalls and texts), Fair Credit Reporting Act, Overtime claims, Personal Injury cases, and Class Actions. He has consistently been recognized as the nation's "most active consumer attorney." In 2020, Mr. Lemberg represented Noah Duguid before the United States Supreme Court in the landmark case Duguid v. Facebook. He is also the author of "Defanging Debt Collectors," a guide that empowers consumers to fight back against debt collectors and prevail, as well as "Lemon Law 101: The Laws That Lemon Dealers Don't Want You to Know."

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1 COMMENT
  • Eric E

    I was a salary emplyee working 45 to 60 hour a week with out overtime pay in a mostly labor construction Environment.

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