In the
February 16, 2017, Insights and Solutions, we notified you of the Oregon Bureau of Labor and Industries (“BOLI”) reinterpretation of the interplay between the state’s daily and weekly overtime laws. Specifically, we informed you that BOLI had concluded that employees who worked enough hours to qualify for both daily overtime pay (for 10 or more hours worked in a single day) and weekly overtime pay (more than 40 hours total in a given week) were entitled to receive both, thereby requiring employers to pay twice for some overtime hours. The new law,
House Bill 3458, rejects BOLI’s interpretation and establishes that employees are entitled only to the greater of either daily or weekly overtime, not both.
In addition, the new law limits such manufacturing employees to working no more than 55 hours, or at employee request or by employee consent up to 60 hours, per week absent undue hardship. Existing law already limited manufacturing employers to no more than 13-hour workdays. Driven primarily by the state’s significant wine, agricultural and fishing industries and their seasonal harvesting demands, the new law does allow employees who process perishable products to consent to work up to 84 hours per week, with certain limitations. However, the law also prohibits employers from disciplining employees who refuse to consent to work more than 55 hours a week and provides statutory and liquidated damages for violations of the daily or weekly work-hour maximums. The new weekly hours cap and new private right of action will become effective January 1, 2018.
Coverage: Manufacturing employers with employees working in Oregon.
Effective: The limitation on payment of weekly and daily overtime is currently in effect. The weekly hours cap and new private right of action will become effective January 1, 2018.
Action Required: Manufacturing employers should review the guidance, their current hours caps, and their overtime calculation practices to determine if changes are necessary or will be necessary in the future. If changes to your overtime calculation are necessary, you should immediately notify your Payroll Service Representative. You should also contact your Human Resources Business Partner if you have any questions.
Produced in cooperation with Jackson Lewis P.C.