NEW LAW: Oregon Amends Manufacturing Overtime Rules

Oregon Governor Kate Brown recently signed House Bill 3458 into law.  This new law is intended to fix ambiguities in Oregon’s daily overtime law, which covers non-union employees working in mills, factories, and manufacturing establishments.

The daily overtime law requires Oregon employers with operations in mills, factories, and manufacturing establishments pay employees daily overtime after 10 hours of work.  These employees are also entitled to overtime compensation after 40 hours of work in the workweek.  The existing law did not, however, clearly address how overtime was to be paid if an employee earned both daily and weekly overtime compensation.

The new law clarifies that employees who are entitled to receive both daily and weekly overtime must be paid only the greater of the two, rather than both.  This “clarifying language” is effective immediately.

The new law also revises limits on weekly work hours for those employed in mills, factories, or other manufacturing establishments. Under the existing law, daily work hours in mills, factories, and manufacturing establishments are capped at 13 hours. Under the new law, absent an undue hardship, employers may not require employees to work more than 55 hours a week.  However, employees can agree in writing to work up to 60 hours a week.  Employers are also prohibited from disciplining employees who do not agree to work in excess of 55 hours a week.

The new weekly hours cap portion of the law goes into effect on January 1, 2018.