HR Alert

Oregon Revises Overtime Calculation for Certain Manufacturing Employees

Law Also Addresses Maximum Hours

A new law in Oregon revises overtime calculation and maximum hour provisions for certain eligible workers employed in mills, factories, or manufacturing establishments ("manufacturing employees").

New Overtime Calculation for Manufacturing Employees

An employer must calculate certain manufacturing employees' overtime compensation on a daily basis and weekly basis and pay the greater of the two amounts (if, during the same workweek, the employee works more than: the applicable limit for the maximum allowable hours of employment in one day as described in Sect. 652.020(1)(a) (see Section 1); and 40 hours in one Section 1 as described in Sect. 653.261(1)). These provisions are currently in effect.

New Rules for Maximum Hours Affecting Manufacturing Employees

Under the new law, an employer generally may not require or permit certain manufacturing employees to work more than: 10 hours in any one day; or 55 hours in any one workweek. However, an employer may permit certain manufacturing employees to work up to 60 hours in one workweek if the employee requests or consents in writing to work more than 55 hours in the workweek.

Also, during the period of time that an employer is eligible for an undue hardship period exemption under the law, an employer may permit certain manufacturing employees to work: up to 84 hours per workweek for 4 workweeks; and up to 80 hours per workweek for the remainder of the undue hardship period.

The provisions above regarding new maximum hours become operative on January 1, 2018.

Click here to read the text of the law, which contains additional provisions affecting certain manufacturing employees. Employers with questions as to the law's impact on workplace policies and practices should contact a knowledgeable employment law attorney.

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