Oregon: Changes to Manufacturing Overtime Rules (Again)

APPLIES TO

All Employers with OR Employees in Manufacturing Industries

EFFECTIVE

August 8, 2017

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Early this year, the Oregon Bureau of Labor and Industries (“BOLI”) published a new interpretation of how employers must calculate overtime hours for employees in a mill, factory, or manufacturing establishment.  This interpretation was swiftly overturned by a county court.  Now, Governor Kate Brown has signed H.B. 3458 into law, which codifies the applicable method to calculate overtime for these employees.

Employees who work in mills, factories, or manufacturing establishments begin incurring overtime rates if they work over 10 hours per day or 40 hours per week.  Historically, BOLI required employers to calculate both daily and weekly overtime and then pay the employee the greater amount.  The BOLI interpretation published earlier this year would have required employers to pay both daily and weekly overtime.  This method was rejected by the court.  H.B. 3458 returns to the previously used method of calculating both daily and weekly overtime and paying the greater amount.  This portion of the bill became effectively immediately upon being signed into law on August 8, 2017.

In addition to clarifying overtime calculation, the bill revises the limit on weekly hours an employee can work in these industries.  Except in circumstances of “undue hardship,” employers cannot require or permit employees to work more than 55 hours per week, unless an employee requests or consents in writing to work up to 60 hours per week.  Employers may not retaliate against employees who decline the opportunity to work up to 60 hours per week.  Timing and limitations vary for employers whose business involves processing of perishable products.

Lastly, the bill provides a private right of action for employees to pursue violations of daily/weekly work hour caps.   BOLI may also assess civil penalties for noncompliance.  Unlike the clarification to overtime calculation, the revision to weekly work hour caps and the new private right of action become effective January 1, 2018.

Action Items

  1. Review the text of H.B. 3458 here.
  2. Have scheduling managers and payroll personnel trained on the revised requirements for weekly work hour caps and the codified overtime calculation method.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2017 ManagEase, Incorporated.

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