Oregon: Recent Overtime Standards for Manufacturing Industry Invalidated

APPLIES TO

All Employers with OR Employees in the Manufacturing Industry

EFFECTIVE

March 9, 2017

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(888) 378-2456

In February, we reported on the Oregon Bureau of Labor and Industries’ (“BOLI”) interpretation of how to calculate overtime hours for manufacturing employees. The new interpretation would have required employers to double count daily and weekly overtime in order to calculate pay.

As of March 9, 2017, the Multnomah County Circuit Court invalidated this interpretation. Instead, the county circuit court pointed back towards the BOLI’s original guidance, which simply required employers to tally an employee’s daily vs. weekly overtime hours and pay the greater of the two amounts.

It is still uncertain whether the court’s decision will be appealed. In the meantime, Oregon legislators also introduced Senate Bill 984, which would codify the older interpretation into law.

Action Items

  1. Review overtime calculation procedures for compliance.
  2. Audit overtime calculations for inconsistencies with the current rule.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.
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