Oregon Overtime Laws: When Are Employees Entitled to Overtime Pay?
Most employees in Oregon must be paid overtime when they work more than 40 hours in a workweek. Overtime is generally paid at one and one-half times the employee’s regular rate of pay.
Not every employee is covered by the same overtime rules. Some employees may qualify for an exemption based on their pay and job duties, while certain industries have special overtime requirements. For example, different rules can apply to manufacturing employees, some agricultural workers, public works employees, hospital employees, and other specific types of work. The Oregon Bureau of Labor and Industries explains Oregon’s overtime requirements and exceptions.
Being paid a salary does not automatically mean an employee is exempt from overtime. Likewise, calling someone an independent contractor or giving the worker a 1099 does not necessarily determine whether overtime laws apply. The employee’s actual job duties, compensation, working relationship, and the law that applies all matter.
If you believe you worked overtime but were not properly paid, this guide explains how Oregon overtime laws work, who may be exempt, how overtime pay is calculated, and what options may be available when an employer fails to pay overtime wages.
Also read: Oregon Pay Equity Law
How Is Overtime Pay Calculated in Oregon?
For most covered employees in Oregon, overtime pay is calculated at one and one-half times the employee’s regular rate of pay for hours worked over 40 in a workweek.
An employee’s regular rate is not always the same as Oregon’s minimum wage. The regular rate is generally based on the compensation the employee receives for the workweek and may include more than an hourly wage. Depending on the circumstances, certain bonuses, commissions, and other forms of compensation may need to be considered when calculating the regular rate.
For example, if an employee’s regular rate is $20 per hour, the employee’s overtime rate would generally be $30 per hour. If that employee worked 45 hours during the workweek, the five overtime hours would generally be paid at the applicable overtime rate.
Oregon also has different minimum wage rates depending on where an employee works. Because those rates can change, employees and employers should check the current Oregon minimum wage rates published by the Bureau of Labor and Industries.
An employer generally cannot avoid its overtime obligations simply by paying an employee a salary, using a particular job title, or classifying the worker as an independent contractor. Whether overtime is required depends on the applicable law and the facts of the employment relationship.
How Is Overtime Pay Calculated in Oregon?
For most covered employees in Oregon, overtime pay is calculated at one and one-half times the employee’s regular rate of pay for hours worked over 40 in a workweek.
An employee’s regular rate is not always the same as Oregon’s minimum wage. The regular rate is generally based on the compensation the employee receives for the workweek and may include more than an hourly wage. Depending on the circumstances, certain bonuses, commissions, and other forms of compensation may need to be considered when calculating the regular rate.
For example, if an employee’s regular rate is $20 per hour, the employee’s overtime rate would generally be $30 per hour. If that employee worked 45 hours during the workweek, the five overtime hours would generally be paid at the applicable overtime rate.
Oregon also has different minimum wage rates depending on where an employee works. Because those rates can change, employees and employers should check the current Oregon minimum wage rates published by the Bureau of Labor and Industries.
An employer generally cannot avoid its overtime obligations simply by paying an employee a salary, using a particular job title, or classifying the worker as an independent contractor. Whether overtime is required depends on the applicable law and the facts of the employment relationship.
Exempt vs. Nonexempt Employees in Oregon
Not every employee in Oregon is entitled to overtime pay. Certain employees may qualify as exempt from overtime requirements, but simply being paid a salary or having a title such as “manager,” “supervisor,” or “administrator” does not automatically make someone exempt.
In fact, salaried employees are generally entitled to overtime unless they meet the requirements of an applicable exemption. The Oregon Bureau of Labor and Industries explains the requirements for salaried exempt employees, including the commonly used executive, administrative, and professional exemptions.
Salary and Job Duties Both Matter
For many of the commonly used “white collar” exemptions, an employee must satisfy both a salary basis test and a duties test.
Being paid on a salary basis generally means receiving a predetermined amount of compensation that is not reduced because of variations in the quality or quantity of work performed, subject to limited exceptions.
The employee’s actual job duties also matter. An employer cannot make an employee exempt from overtime simply by changing a job title or describing a position as managerial. The work the employee actually performs must satisfy the requirements of the exemption.
Executive Exemption
An employee classified under the executive exemption generally must have management as a primary duty, regularly direct the work of at least two other employees, and have meaningful authority or influence over hiring, firing, promotion, or other changes in employee status.
A worker who is called a “manager” but spends most of the job performing essentially the same nonmanagement work as other employees may not necessarily qualify for the executive exemption. The specific facts of the position matter.
Administrative Exemption
The administrative exemption does not apply simply because an employee works in an office or performs administrative tasks.
Generally, the employee’s primary duties must involve qualifying office or nonmanual work related to management or business operations, along with the level of decision-making authority required by the applicable exemption. Routine clerical work does not become exempt merely because the employee is paid a salary.
Professional Exemption
Certain learned and creative professionals may also qualify as exempt.
For learned professionals, the work generally must require advanced knowledge in a field of science or learning that is customarily acquired through specialized academic instruction. Other requirements apply to creative professionals and certain other occupations.
Because the requirements vary depending on the type of professional work involved, an employee should not assume that having a degree, professional-sounding title, or salaried position automatically eliminates the right to overtime.
Oregon and Federal Exemption Rules Can Both Apply
Oregon employers may have obligations under both Oregon wage law and the federal Fair Labor Standards Act. The salary and duties requirements are not necessarily identical under state and federal law.
Oregon’s salary requirement for certain exempt employees is tied to the applicable regional minimum wage, while federal law has its own salary threshold. When state and federal requirements differ, the standard that provides greater protection to the employee generally controls. Employees and employers should therefore check the current requirements rather than relying on an older salary figure found online.
The U.S. Department of Labor provides additional information about the federal executive, administrative, and professional exemptions.
Misclassification Can Lead to Unpaid Overtime
Misclassification becomes especially important when an employee routinely works more than 40 hours per week.
For example, an employer might pay an employee a salary, give the employee a “manager” title, and treat the position as exempt. If the employee’s actual duties do not satisfy the applicable exemption requirements, the worker may still be nonexempt and potentially entitled to overtime pay.
BOLI specifically warns that misclassifying salaried employees as exempt can create liability for unpaid overtime.
Read more on Oregon wage claims.
Do Salaried Employees Get Overtime in Oregon?
Being paid a salary does not automatically mean an employee is exempt from overtime in Oregon. Some salaried employees are still considered nonexempt and may be entitled to overtime pay when they work more than 40 hours in a workweek.
Whether a salaried employee qualifies for an overtime exemption depends on the requirements of the particular exemption. For many commonly used exemptions, this includes both how the employee is paid and the work the employee actually performs. A job title alone does not determine whether someone is exempt.
For example, an employer might give an employee the title of “manager” and pay that employee a fixed salary. If the employee spends most of the workday performing ordinary nonmanagement duties and does not satisfy the requirements of an applicable exemption, the employee may still be entitled to overtime.
Employees who are uncertain about their classification can learn more about salaried employee rights in Oregon and the differences between exempt and nonexempt employees in Oregon.
What If a Salaried Employee Works More Than 40 Hours?
If a salaried employee is nonexempt, working more than 40 hours in a workweek can trigger overtime requirements. Paying a fixed salary does not, by itself, allow an employer to require unlimited hours without additional overtime compensation.
Calculating overtime for a salaried nonexempt employee can be more complicated than simply multiplying an hourly wage by 1.5. The calculation can depend on what the salary was intended to compensate, the employee’s regular rate of pay, and other compensation received during the workweek.
Employees who regularly work more than 40 hours without additional compensation should not assume they have no overtime rights simply because their paycheck lists them as salaried.
Independent Contractors and Overtime in Oregon
Independent contractors generally are not entitled to employee overtime protections simply because they work more than 40 hours in a week. However, being called an independent contractor does not necessarily mean a worker is legally classified that way.
A company cannot determine a worker’s legal status simply by issuing a 1099, requiring the worker to sign an independent contractor agreement, or describing the worker as a contractor. The actual working relationship matters, and different classification tests may apply depending on the law and type of claim involved.
This can become especially important when a worker is treated as an independent contractor but works long hours under significant direction or control from the company. If the worker has been misclassified and should legally have been treated as an employee, the worker may have rights to unpaid overtime or other wages, depending on the circumstances.
Workers who receive a 1099 or have questions about their employment status can read our guide to Oregon independent contractor laws for a more detailed explanation of worker classification, ORS 670.600, and the different tests that may apply under Oregon law.
Signs That Classification May Be Worth Reviewing
Worker classification is highly fact-specific, but questions may arise when a company treats someone as an independent contractor while also:
- Controlling when, where, or how the person performs the work
- Closely supervising the person’s day-to-day work
- Setting the worker’s schedule
- Restricting the worker’s ability to perform services for other businesses
- Providing significant tools, equipment, or resources needed for the work
- Treating the worker much like employees performing similar work
No single fact necessarily determines whether someone is an employee or independent contractor. The applicable legal test and the overall working relationship must be considered.
Special Overtime Rules for Some Oregon Workers
Although overtime is generally required after 40 hours worked in a workweek, Oregon has special overtime rules for certain industries and types of work. Depending on the employee’s job and workplace, overtime may be required on a daily basis or under a different weekly threshold.
Manufacturing and Cannery Workers
Employees working in certain Oregon manufacturing establishments may be entitled to overtime after working more than 10 hours in a day, not just after exceeding 40 hours in a workweek. Oregon also limits employees of covered manufacturing establishments to 13 hours of work in a 24-hour period.
Special rules also apply to employees working in canneries, driers, and packing plants. Whether these requirements apply can depend on the type of facility, the work performed, and whether the facility is located on a farm and primarily processes products produced on that farm.
Because these rules are more complicated than the general 40-hour overtime standard, workers and employers can review BOLI’s overtime requirements for manufacturing establishments and canneries.
Agricultural Workers
Oregon has been gradually lowering the number of hours agricultural employees can work before overtime is required.
For 2025 and 2026, covered agricultural workers generally must receive overtime after working more than 48 hours in a workweek. Beginning January 1, 2027, the threshold is scheduled to decrease to 40 hours in a workweek.
Agricultural overtime can become more complicated when employees process crops, work with products grown by another farmer, perform both agricultural and nonagricultural work, or fall within a statutory exemption.
BOLI provides current information about minimum wage and overtime requirements for agricultural workers.
Public Works and Prevailing Wage Projects
Employees working on certain Oregon public works projects can also be subject to special overtime rules.
On projects covered by Oregon’s Prevailing Wage Rate law, overtime is generally required after eight hours in a day, Monday through Friday, even when the employee has not yet worked 40 hours that week. Different rules can apply when an employee works an established schedule of four consecutive 10-hour days.
Covered workers may also be entitled to overtime for work performed on Saturdays, Sundays, certain legal holidays, and after 40 hours in a workweek.
Workers and contractors can review BOLI’s overtime requirements for prevailing wage projects.
Hospital and Health Care Workers
Oregon overtime rules can also differ for certain hospital and health care employees. In addition to wage-and-hour requirements, Oregon has specific laws governing work schedules and mandatory overtime for certain nursing employees.
Because the rules depend on the employee’s occupation, workplace, and circumstances, health care workers should not assume that the general overtime rules are the only protections that apply.
Other Workers May Have Different Overtime Rules
Other occupations and employment arrangements may also be subject to different overtime requirements or exemptions. For example, special provisions can affect certain domestic workers, government employees, transportation workers, and other occupations.
Domestic workers have their own Oregon protections. BOLI states, for example, that Oregon law generally requires overtime after 40 hours for covered domestic service workers, while a different threshold can apply to certain live-in domestic workers.
Because overtime rights can depend on both Oregon and federal law, workers should consider the specific rules that apply to their occupation rather than assuming every job follows the same 40-hour standard.
How to Calculate Overtime Pay in Oregon
Each pay period’s overtime compensation is included in each employee’s total amount. It is computed as follows: Hourly pay rate * first 40 hours + Hourly pay rate x 1.5 x overtime hours worked.
For an employee that worked 52 hours in a workweek, this is an example of total compensation:
A regular pay rate multiplied by 40 hours is the regular salary, plus overtime compensation.
To get overtime compensation, you have to multiply the hourly rate by 1.5 times the number of extra hours worked (which is 12 in this case).
As an example, here’s a more extensive one:
An employee clocks in 52 hours for a week.
It’s usual for the employee to get $15 an hour for their regular time.
So, the 40 hours at $15 an hour are worth $600, plus an extra $270 for the 12 hours of overtime she worked (at $15 x 1.5 x 12 = $270).
So, the weekly salary would total $870, including overtime pay.
Frequently Asked Questions About Oregon Overtime Laws
Is Overtime After 8 Hours or 40 Hours in Oregon?
For most Oregon employees, overtime is based on working more than 40 hours in a workweek, not more than eight hours in a single day.
There are exceptions. For example, employees of certain manufacturing establishments may be entitled to overtime after working more than 10 hours in a day, and workers on certain Oregon public works projects can be subject to daily overtime requirements.
The Oregon Bureau of Labor and Industries provides current information about overtime requirements and special rules that apply to particular industries.
Do Salaried Employees Get Overtime in Oregon?
Yes, some salaried employees are entitled to overtime. Receiving a salary does not automatically make an employee exempt.
Whether a salaried employee is exempt depends on whether the employee satisfies the requirements of an applicable exemption. Those requirements can include how the employee is paid and the employee’s actual job duties.
Learn more about salaried employee rights in Oregon and the distinction between exempt and nonexempt employees.
Can My Employer Require Me to Work Overtime in Oregon?
Generally, yes. Oregon law generally allows an employer to establish an employee’s work schedule and require overtime. An employer may also discipline an employee who refuses scheduled overtime.
Requiring overtime does not eliminate the employer’s obligation to properly compensate a nonexempt employee for overtime hours worked. Special restrictions can also apply to certain occupations and industries.
Is Overtime Based on the Workweek or the Pay Period?
Overtime is generally calculated based on the workweek, not the employer’s pay period.
A workweek is a regularly recurring period of seven consecutive days. It does not have to run from Monday through Sunday, but the employer generally cannot manipulate the workweek from one week to another simply to avoid paying overtime.
Can My Employer Average My Hours Over Two Weeks to Avoid Overtime?
Generally, no.
For example, suppose a nonexempt employee works 45 hours during one workweek and 35 hours during the next. An employer generally cannot average the two weeks together and claim that no overtime is owed because the employee averaged 40 hours per week.
The employee would generally be entitled to overtime for the five overtime hours worked during the first workweek. Federal overtime rules likewise generally prohibit averaging hours across two or more workweeks.
Do Bonuses and Commissions Count When Calculating Overtime?
They can.
Overtime is based on an employee’s regular rate of pay, which can include more than the employee’s basic hourly wage. Certain nondiscretionary bonuses, commissions, and other compensation may need to be included when determining the regular rate.
Not every payment is included. For example, certain discretionary bonuses, expense reimbursements, gifts, and other payments can be excluded under applicable law. The U.S. Department of Labor explains what may be included in the regular rate of pay.
Are Independent Contractors Entitled to Overtime in Oregon?
A genuine independent contractor generally is not covered by employee overtime protections. However, a company cannot necessarily avoid overtime obligations simply by calling a worker an independent contractor, issuing a 1099, or requiring the worker to sign a contractor agreement.
If a worker has been misclassified and should legally have been treated as an employee, unpaid overtime may be one of the issues that needs to be evaluated.
Our guide to Oregon independent contractor laws explains worker classification and why the facts of the working relationship matter.
What If My Employer Calls Me a Manager?
A managerial job title does not automatically make an employee exempt from overtime.
For an employee to qualify for an executive or another applicable overtime exemption, the legal requirements for that exemption must actually be satisfied. The employee’s real job duties matter more than the title printed on a business card, job description, or paycheck.
An employee who is called a manager but primarily performs nonmanagement work may want to examine whether the position has been properly classified.
How Far Back Can I Claim Unpaid Overtime in Oregon?
The amount of time available to pursue unpaid overtime depends on the law under which the claim is brought and the circumstances of the case.
Oregon and federal wage claims can be subject to different filing deadlines, and the applicable deadline can affect how much unpaid overtime may be recoverable. Employees who believe they are owed overtime should avoid waiting until a deadline is approaching before investigating their rights.
BOLI notes that Oregon wage claims can involve a six-year statute of limitations, while different limitation periods may apply to claims brought under federal law. Because deadlines and available remedies depend on the particular claim, workers with substantial unpaid overtime should consider obtaining advice about their specific circumstances.
Contact an Experienced Lawyer
Call an expert Oregon wage and hour lawyer who will stand by your side and fight for your rights, as well as assist you in achieving reasonable compensation for your lost income if you have been denied extra pay for overtime. In addition, you may be entitled to legal fees and expenses. If you are looking for expert overtime attorneys in Oregon, contact us at Meyer Employment Law for a free consultation.
