🇺🇸 Oregon Overtime Laws — 2026 UPDATE

Overtime Laws in Oregon 2026: Pay Rates, Exemptions & Tax Deduction (2026)

⚠️Informational only — not legal or tax advice.

Guide for Oregon overtime laws 2026

Last verified: March 3, 2026

Next scheduled review: June 3, 2026

Overtime in Oregon 2026

Table of Contents

Click any item below to jump to the relevant section

Oregon Overtime Laws at a Glance (2026)

Oregon Overtime Laws at a Glance (2026)
Item Details
Overtime threshold 40 hours per workweek (standard); 10 hours per workday (manufacturing and canneries)
Overtime pay rate 1.5× regular rate of pay
Double time No — Oregon does not require double time
7th consecutive day rule No
State minimum wage (2026) $16.30/hour (Portland metro); $15.05/hour (standard); $14.05/hour (nonurban counties) — effective July 1, 2025 through June 30, 2026
Exempt salary threshold (2026) Federal: $684/week ($35,568/yr) — Oregon does not set a higher state threshold
Daily overtime Yes — manufacturing establishments and canneries: after 10 hours in a workday
Agricultural overtime threshold (2025–2026) 48 hours per workweek (decreasing to 40 hours in 2027)
State enforcement agency Oregon Bureau of Labor and Industries (BOLI)
Federal enforcement U.S. DOL Wage and Hour Division
Overtime tax deduction (federal) Up to $12,500/yr (2025–2028) — FLSA-covered workers (IRC § 225)
Oregon state income tax Oregon conforms to the federal overtime deduction for 2025; HB 2234 pending for state-level extension 2026–2031
Statute of limitations 2 years (overtime under ORS 653.055) / 6 years (general wage claims) / 2 years FLSA (3 if willful)

Governing law: Oregon Revised Statutes § 653.261; ORS § 652.020; ORS § 653.272 (agricultural workers); Fair Labor Standards Act, 29 U.S.C. § 207 Last verified: March 3, 2026

Does Oregon Have Its Own Overtime Law?

Oregon has its own overtime law under Oregon Revised Statutes (ORS) § 653.261, which establishes overtime pay requirements for most employees in the state. For the majority of workers, Oregon’s overtime rules align with the federal Fair Labor Standards Act (FLSA) — requiring overtime after 40 hours in a workweek at 1.5 times the regular rate of pay.

However, Oregon’s overtime framework is broader than the FLSA in several important respects. When Oregon law and federal FLSA rules differ, the standard more favorable to the employee applies.

Key differences between Oregon and federal overtime law:

  • Daily overtime for manufacturing and canneries: ORS § 652.020 requires overtime after 10 hours in a workday for employees of manufacturing establishments, canneries, driers, and packing plants — a protection the FLSA does not provide for most workers.
  • Agricultural overtime phasedown: Oregon is phasing in overtime protections for agricultural workers through ORS § 653.272. The threshold is 48 hours per workweek in 2025–2026 and drops to 40 hours per workweek starting January 1, 2027. Federal law generally exempts agricultural workers from overtime entirely.
  • Domestic workers: Under Oregon’s Domestic Workers’ Protection Act, domestic workers are entitled to overtime under the same rules as other employees, with one exception: live-in domestic workers (those residing in the employer’s home) do not accumulate overtime until they exceed 44 hours in a workweek, rather than 40.
  • Correctional facility nurses: ORS § 653.268 restricts mandatory overtime for nurses employed at correctional facilities, including minimum rest period requirements between shifts.
  • Comp time ban for private employers: Oregon law does not allow private-sector employers to substitute compensatory time off for overtime pay. Only government agencies may offer comp time.

State statute: ORS § 653.010–653.261 — https://www.oregonlegislature.gov/bills_laws/ors/ors653.html Manufacturing and cannery overtime: ORS § 652.020 — https://www.oregonlegislature.gov/bills_laws/ors/ors652.html Agricultural overtime: ORS § 653.272 — https://www.oregonlegislature.gov/bills_laws/ors/ors653.html Federal statute: Fair Labor Standards Act, 29 U.S.C. § 207 — https://www.dol.gov/agencies/whd/overtime

How Overtime Pay Is Calculated in Oregon

What Is a “Workweek”?

Under both Oregon law and the FLSA, a workweek is a fixed, regularly recurring period of 168 consecutive hours (seven consecutive 24-hour periods). The workweek does not have to begin on Monday or align with a calendar week — employers may designate any day and time as the start, as long as it remains consistent.

Each workweek stands alone. An employer cannot average hours across two or more workweeks to avoid overtime. If an employee works 50 hours one week and 30 the next, overtime is owed for the first week regardless of the second week’s total.

Source: 29 C.F.R. § 778.104–778.105; Oregon Bureau of Labor and Industries — https://www.oregon.gov/boli/employers/pages/overtime.aspx

Pay Rates

Under ORS § 653.261 and the FLSA, nonexempt employees in Oregon earn overtime at the following rates:

Time-and-a-half (1.5× regular rate):

  • All hours worked over 40 in a workweek (all covered employees)
  • All hours worked over 10 in a workday (employees of manufacturing establishments, canneries, driers, and packing plants — ORS § 652.020)
  • All hours worked over 48 in a workweek for agricultural workers in 2025–2026 (ORS § 653.272)

Oregon does not require double time. No provision of Oregon law mandates a 2× rate for any category of work.

What Counts as the “Regular Rate of Pay”

The regular rate is not always the same as the hourly wage. Under FLSA (29 C.F.R. § 778.108) and Oregon law, the regular rate includes:

  • Base hourly rate or salary equivalent
  • Non-discretionary bonuses and incentive pay
  • Shift differentials
  • Commissions
  • Piece-rate earnings

The regular rate does not include:

  • Discretionary bonuses (e.g., holiday gifts)
  • Employer contributions to benefit plans
  • Vacation, holiday, or sick pay when no work is performed
  • Expense reimbursements

When an employee works at two different rates within the same workweek, overtime is calculated using a weighted average of those rates.

Source: 29 C.F.R. § 778.108–778.122; Oregon Bureau of Labor and Industries, Overtime FAQ — https://www.oregon.gov/boli/employers/pages/overtime.aspx

Calculation Examples

Oregon has a tiered minimum wage based on geographic location. The examples below use the standard rate applicable in most Oregon counties (July 1, 2025 – June 30, 2026).

Oregon minimum wages (July 1, 2025 – June 30, 2026):

  • Portland metro area (within the urban growth boundary): $16.30/hour
  • Standard rate (most Oregon counties): $15.05/hour
  • Nonurban counties: $14.05/hour

Source: Oregon Bureau of Labor and Industries, Minimum Wage — https://www.oregon.gov/boli/workers/pages/minimum-wage.aspx

Example 1 — Standard weekly overtime (most Oregon workers):

An employee earns $15.05/hour (standard minimum wage) and works 48 hours in one workweek:

  • Regular pay: 40 hours × $15.05 = $602.00
  • Overtime pay: 8 hours × ($15.05 × 1.5) = 8 × $22.58 = $180.64
  • Total weekly gross pay: $782.64

Example 2 — Daily overtime (manufacturing establishment employee):

An employee at an Oregon manufacturing plant earns $15.05/hour and works a 12-hour shift:

  • Regular pay: 10 hours × $15.05 = $150.50
  • Overtime pay: 2 hours × ($15.05 × 1.5) = 2 × $22.58 = $45.16
  • Total daily gross pay: $195.66

Note: This employee would also qualify for weekly overtime if their total hours exceed 40 in the workweek, whichever calculation results in more overtime pay.

Example 3 — Agricultural worker overtime (2025–2026):

An agricultural worker earns $15.05/hour and works 52 hours in one workweek:

  • Regular pay: 48 hours × $15.05 = $722.40
  • Overtime pay: 4 hours × ($15.05 × 1.5) = 4 × $22.58 = $90.32
  • Total weekly gross pay: $812.72

Starting January 1, 2027, this threshold drops to 40 hours — the same standard as other covered employees.

Source: ORS § 652.020; ORS § 653.261; ORS § 653.272; 29 C.F.R. § 778.108–778.122

For the current Oregon minimum wage rates used in these calculations, see the Oregon Minimum Wage page.

Sources: ORS § 653.010–653.261 — https://www.oregonlegislature.gov/bills_laws/ors/ors653.html | ORS § 652.020 — https://www.oregonlegislature.gov/bills_laws/ors/ors652.html | Oregon BOLI Overtime FAQ — https://www.oregon.gov/boli/employers/pages/overtime.aspx | 29 C.F.R. § 778.104–778.122 — https://www.ecfr.gov/current/title-29/part-778

Who Is Exempt from Overtime in Oregon?

Not all employees in Oregon are entitled to overtime pay. Certain employees are classified as “exempt” under federal and/or state law.

Federal FLSA Exemption Requirements

To be exempt from overtime under the FLSA, an employee must meet all three criteria:

1. Salary basis test: Paid a predetermined, fixed salary each pay period (not hourly)

2. Salary level test: Earn at least $684 per week ($35,568 per year)

3. Duties test: Perform specific job duties in one of these categories:

Overtime Exemptions (EAP Categories)
Exemption Key duty requirement
Executive Manages enterprise or department; directs 2+ employees; has authority to hire or fire
Administrative Office or non-manual work related to management or business operations; exercises independent judgment on significant matters
Professional Work requiring advanced knowledge in science or learning acquired through prolonged specialized education
Computer employee Systems analysis, programming, software engineering — $684/week salary OR $27.63/hour
Outside sales Primary duty is making sales away from the employer's place of business

Source: 29 C.F.R. Part 541 — https://www.ecfr.gov/current/title-29/part-541

What Happened to the 2024 DOL Salary Threshold Increase?

In April 2024, the U.S. Department of Labor issued a final rule that would have raised the exempt salary threshold to $1,128 per week ($58,656/year) effective January 1, 2025.

On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated that rule nationwide in Texas v. U.S. Department of Labor (No. 4:24-cv-00499).

The salary threshold remains $684/week ($35,568/year) as of 2026.

Oregon’s Exempt Salary Threshold

Oregon does not set a separate, higher exempt salary threshold for white-collar overtime exemptions. The applicable threshold is the federal $684/week ($35,568/year).

However, Oregon BOLI notes that almost all Oregon employers are subject to the FLSA, making the federal standard the operative minimum for exemption.

Important note: Oregon law requires that the burden of proving exempt status falls on the employer, not the employee. Misclassifying a salaried employee as exempt creates liability for all unpaid overtime.

Source: Oregon BOLI, Overtime FAQ — https://www.oregon.gov/boli/employers/pages/overtime.aspx

Oregon-Specific Exemptions

Oregon law contains several exemptions not present in or different from the FLSA. Under ORS § 653.020, the following categories are excluded from Oregon’s minimum wage and overtime requirements (note that FLSA coverage may still apply independently):

  • Domestic workers employed in a private home who do not live in the employer’s home — exempt from Oregon overtime (but the FLSA may cover them separately)
  • Live-in domestic workers — entitled to overtime only after 44 hours per workweek (not 40) under Oregon’s Domestic Workers’ Protection Act
  • Outside salespersons who spend more than 50% of their work time away from the employer’s place of business selling tangible goods or services
  • Motor carrier drivers whose hours are regulated by the U.S. Department of Transportation
  • Employees covered by a collective bargaining agreement that provides premium wage rates higher than Oregon’s minimum wage and stipulates wages, hours, and conditions of employment

Source: ORS § 653.020 — https://www.oregonlegislature.gov/bills_laws/ors/ors653.html

Salaried Employees Are Not Automatically Exempt

Being paid a salary does not automatically make an employee exempt from overtime. Salaried employees in Oregon must meet both the salary level test ($684/week) AND one of the duties tests. Oregon BOLI specifically cautions employers that salaried workers who do not qualify under all three criteria are nonexempt and entitled to overtime pay.

Source: Oregon BOLI, Salaried Exempt Employees — https://www.oregon.gov/boli/employers/pages/salaried-exempt-employees.aspx

Overtime Tax Deduction: "No Tax on Overtime" (2025–2028)

Not all employees in Oregon are entitled to overtime pay. Certain employees are classified as “exempt” under federal and/or state law.

Federal FLSA Exemption Requirements

To be exempt from overtime under the FLSA, an employee must meet all three criteria:

1. Salary basis test: Paid a predetermined, fixed salary each pay period (not hourly)

2. Salary level test: Earn at least $684 per week ($35,568 per year)

3. Duties test: Perform specific job duties in one of these categories:

Overtime type What is deductible Example ($20/hr regular rate)
Time-and-a-half (1.5×) The "half" — 1/3 of total OT pay $10/hr per OT hour ($30 − $20)

IRS shortcut for 2025: If you only know your total overtime pay and were paid time-and-a-half, divide the total overtime amount by 3. (Source: IRS Notice 2025-69)

Deduction Limits
Filing status Maximum annual deduction Phase-out begins
Single $12,500 $150,000 MAGI
Married filing jointly $25,000 $300,000 MAGI
W-2 Reporting
Tax year Employer reporting requirement
2025 NOT required to separately report (transition year — IRS Notice 2025-62). May voluntarily report in W-2 Box 14 as "QUAL OT" or provide a separate statement.
2026 and later REQUIRED to separately report qualified overtime compensation. The IRS has published a draft W-2 form indicating Box 12, Code TT for this purpose (draft, subject to change before finalization).

If an employer did not separately report overtime for 2025, the IRS allows employees to use “any reasonable method” to calculate the deductible amount, including one-third of total overtime pay for time-and-a-half workers.

What This Deduction Does NOT Do

  • Does NOT exempt overtime from Social Security (6.2%) or Medicare (1.45%) taxes
  • Does NOT automatically apply to Oregon state income taxes (see below)
  • Does NOT change how much overtime pay an employee receives — it reduces taxable income when filing
  • Does NOT apply to overtime paid solely under state law or employer policy that exceeds FLSA requirements

Source: IRS Questions and Answers about the New Deduction for Qualified Overtime Compensation — https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation | IRS Notice 2025-69 | IRS Notice 2025-62 | IRC § 225 | P.L. 119-21, § 70202

Oregon State Income Tax and the Overtime Deduction

Oregon imposes a state income tax. The interaction between the federal overtime deduction and Oregon’s tax code is nuanced and involves two distinct periods:

For tax year 2025: Oregon is a rolling conformity state, meaning it automatically conforms to the federal Internal Revenue Code unless the legislature explicitly decouples. Oregon’s 2025 Publication OR-17 confirms that Oregon follows the same deductions for overtime wages that taxpayers claim on their federal return for 2025. As a result, FLSA-covered Oregon workers who claim the federal overtime deduction on their Form 1040 also receive the benefit on their Oregon state return for the 2025 tax year.

For tax years 2026 and beyond: Oregon’s legislature passed Senate Bill 1507 (signed into law in early 2026), which partially disconnects Oregon’s tax code from certain federal OBBBA provisions. However, per the legislative text and Oregon Capital Chronicle reporting (February 26, 2026), SB 1507 retained the income tax cuts on overtime and tips — meaning Oregon did not disconnect from the federal overtime deduction for these years.

Separately, Oregon HB 2234 was introduced in the 2025 legislative session and proposes a standalone Oregon personal income tax subtraction for overtime pay received, applying to tax years beginning on or after January 1, 2026, through December 31, 2031. As of March 2026, HB 2234 remains in committee.

Summary for Oregon Workers
Tax year Federal overtime deduction Oregon state treatment
2025 Available (IRC § 225) Oregon conforms — same deduction applies on state return
2026–2028 Available (IRC § 225) Oregon retained conformity under SB 1507 — federal deduction flows through to state return
2026–2031 N/A (state-specific) HB 2234 pending — would create a separate Oregon overtime subtraction if enacted

Source: Oregon DOR, 2025 Publication OR-17 — https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf | Oregon HB 2234 — https://olis.oregonlegislature.gov/liz/2025R1/Downloads/MeasureDocument/HB2234/Introduced | Oregon Legislature, SB 1507 — https://olis.oregonlegislature.gov

For Oregon income tax details, see the Oregon Income Tax page on RemoteLaws.

Can an Employer Require Overtime in Oregon?

Under the FLSA, there is no federal limit on the number of hours an employer can require an adult employee (age 16 and older) to work in a workweek, as long as the employee is properly compensated for all overtime hours. Oregon BOLI confirms the same rule applies under Oregon law: employers may dictate work schedules and may discipline or terminate employees who refuse to work scheduled overtime.

Oregon-specific overtime restrictions:

Oregon does not restrict mandatory overtime for most workers. However, the following categories have statutory protections:

Manufacturing establishments (ORS § 652.020): Employees of manufacturing establishments may not be required to work more than 13 hours in a 24-hour period, except in cases of emergency (power outage, major equipment breakdown, severe weather, or similar events outside the employer’s control). Additionally:

  • Employers must provide at least a 10-hour rest period between shifts when the previous shift totaled 8 or more hours
  • For employees at food manufacturing establishments (NAICS code 3118), advance notice of at least 5 days is required before requiring overtime shifts, unless the employer has provided fewer days’ notice and the employee consents

Correctional facility nurses (ORS § 653.268): Nurses employed at correctional facilities cannot be required to work beyond their agreed, prearranged scheduled shift. At minimum, a 10-hour break is required following any 12-hour shift. Limited exceptions apply in certain emergency circumstances or when a staff vacancy emerges at the end of a shift.

Employees who coerce consent to excessive hours: Under ORS § 652.020, if an employer coerces an employee into consenting to work more than 55 hours in one workweek, BOLI may assess a civil penalty of $2,000 to $3,000 per violation.

Protections That Always Apply

Regardless of mandatory overtime policies, the following protections apply in Oregon:

  • All overtime hours must be compensated at the applicable overtime rate
  • Employers cannot retaliate against employees who file wage complaints (ORS § 653.060; 29 U.S.C. § 215(a)(3))
  • Child labor laws restrict hours for employees under 18

Source: ORS § 652.020 — https://www.oregonlegislature.gov/bills_laws/ors/ors652.html | ORS § 653.268 — https://www.oregonlegislature.gov/bills_laws/ors/ors653.html | Oregon BOLI, Overtime FAQ — https://www.oregon.gov/boli/employers/pages/overtime.aspx | 29 U.S.C. § 207

Industry-Specific Overtime Rules in Oregon

Oregon has several industry-specific overtime rules that differ significantly from the general 40-hour weekly threshold.

Manufacturing Establishments (ORS § 652.020)

Employees of mills, factories, and other manufacturing establishments in Oregon are subject to daily overtime rules that do not apply to most workers:

  • Overtime is required after 10 hours worked in a single workday (in addition to the standard 40-hour weekly threshold)
  • The employer must apply whichever calculation — daily or weekly — results in the greater overtime pay
  • A maximum of 13 hours of work per 24-hour period is permitted, except in genuine emergencies
  • Employers must provide a minimum 10-hour rest period between shifts when the prior shift was 8 or more hours

Employees covered by a collective bargaining agreement with agreed limits on hours and overtime payment may be exempt from certain provisions of ORS § 652.020, provided no agreement has been reached on those specific terms.

Source: ORS § 652.020 — https://www.oregonlegislature.gov/bills_laws/ors/ors652.html

Canneries, Driers, and Packing Plants (ORS § 653.265)

Employees of canneries, driers, and packing plants that process perishable products are also entitled to daily overtime:

  • Overtime is required after 10 hours worked in a single workday
  • During an “undue hardship period” — when perishable product must be processed after harvesting, slaughter, or catch — different rules may apply under limited circumstances

Bakeries and tortilla factories were added to these protections under Oregon SB 1513 (2022).

Source: ORS § 653.265 — https://www.oregonlegislature.gov/bills_laws/ors/ors653.html | Oregon BOLI, Manufacturing and Cannery Overtime — https://www.oregon.gov/boli/employers/pages/overtime-manufacturing-and-canneries.aspx

Agriculture (ORS § 653.272)

Oregon is phasing in overtime protections for agricultural workers on a statutory schedule:

Oregon Agricultural Overtime Phase-In Schedule
Calendar years Agricultural overtime threshold
2023–2024 After 55 hours per workweek
2025–2026 After 48 hours per workweek
2027 and beyond After 40 hours per workweek

Agricultural workers who work beyond the applicable threshold must be paid 1.5 times their regular rate of pay for each overtime hour.

Workers excluded from agricultural overtime (ORS § 653.273):

  • Immediate family members of the employer
  • Local hand harvest or pruning workers paid by piece rate who worked fewer than 13 weeks in the prior calendar year
  • Individuals in agriculture performing primarily administrative, executive, or professional work who exercise discretion and independent judgment and are paid on a salary basis

Oregon’s agricultural overtime rules apply separately from the FLSA, which generally does not require overtime for agricultural workers.

Source: ORS § 653.272 and ORS § 653.273 — https://www.oregonlegislature.gov/bills_laws/ors/ors653.html | Oregon BOLI, Agriculture — https://www.oregon.gov/boli/employers/pages/minimum-wage-and-overtime-in-agriculture.aspx

Domestic Workers

Under Oregon’s Domestic Workers’ Protection Act, domestic workers are entitled to overtime on the same basis as other Oregon workers, with one exception:

  • Non-live-in domestic workers: Overtime applies after 40 hours per workweek
  • Live-in domestic workers (residing in the employer’s home): Overtime does not begin accruing until hours exceed 44 in a workweek

Source: ORS § 653.261; Oregon BOLI — https://www.oregon.gov/boli/employers/pages/overtime.aspx

Healthcare — 8-and-80 System (Federal)

Hospitals and residential care facilities in Oregon may adopt the federal 8-and-80 work period arrangement under 29 U.S.C. § 207(j). Under this system, overtime is due for hours worked over 8 in a day OR over 80 hours in a 14-day period, whichever results in greater overtime pay.

Employers must have a prior agreement with employees before adopting the 8-and-80 system.

Source: 29 U.S.C. § 207(j) — https://www.dol.gov/agencies/whd/overtime

Correctional Facility Nurses (ORS § 653.268)

Nurses employed at correctional facilities have specific mandatory overtime protections:

  • A nurse may not be required to work beyond their agreed, prearranged scheduled shift
  • A minimum 10-hour break must follow any 12-hour shift
  • A nurse may voluntarily work up to 4 additional hours beyond the scheduled shift in specific circumstances, including: a staff vacancy discovered at the end of the current shift, or a potential patient harm situation if the nurse leaves before relief arrives
  • Emergency circumstances (such as unforeseen events or security lockdowns) may create additional exceptions

Source: ORS § 653.268 — https://www.oregonlegislature.gov/bills_laws/ors/ors653.html

Public Sector / Government Employees (Compensatory Time)

Under 29 U.S.C. § 207(o), public employers (state and local government) in Oregon may offer compensatory time off at 1.5 hours per overtime hour instead of cash overtime pay, provided:

  • A prior agreement exists between the employer and employee or union
  • The accrual cap is 240 hours (or 480 hours for public safety, emergency response, and seasonal workers)
  • Employees must be permitted to use accrued comp time within a reasonable period

Private-sector employers in Oregon cannot offer comp time in lieu of overtime pay. Under both Oregon law and the FLSA, private employers must pay overtime wages in cash.

Source: 29 U.S.C. § 207(o) — https://www.dol.gov/agencies/whd/overtime | Oregon BOLI — https://www.oregon.gov/boli/employers/pages/overtime.aspx

Retail and Commission Employees

Under 29 U.S.C. § 207(i), retail or service employees who receive more than half their earnings from commissions may be exempt from FLSA overtime if their regular rate of pay exceeds 1.5 times the applicable minimum wage. Oregon does not have a separate state provision modifying this exemption.

Source: 29 U.S.C. § 207(i) — https://www.dol.gov/agencies/whd/overtime

How to File an Overtime Wage Complaint in Oregon

Employees in Oregon who believe they have not received proper overtime pay have three options:

Option 1: Oregon Bureau of Labor and Industries (BOLI)

How to File an Overtime Wage Complaint in Oregon
Item Details
Agency Oregon Bureau of Labor and Industries (BOLI) — Office of Labor Law
Online filing https://complaints.boli.oregon.gov/home/landing
Phone 971-245-3844
Email boli_help@boli.oregon.gov
Mailing address 800 NE Oregon St., Suite 1045, Portland, OR 97232
Deadline (overtime claims) 2 years from the date the overtime wages were earned (ORS § 653.055)
Deadline (general wage claims) 6 years from the date wages were earned

Note: As of late 2024, BOLI reported a significant backlog and is prioritizing certain categories of claims. Cases involving ongoing violations or employees still employed by the respondent employer receive priority. Workers with claims that do not meet triage criteria may not have their cases investigated and should consider filing directly with the U.S. DOL or pursuing a private lawsuit.

Source: Oregon BOLI, Wage Claim — https://www.oregon.gov/boli/workers/pages/wageclaim.aspx | Oregon BOLI, Complaint Triage — https://www.oregon.gov/boli/about/pages/claim-and-complaint-triage.aspx

Option 2: U.S. Department of Labor — Wage and Hour Division

Federal Wage and Hour Complaint (Oregon)
Item Details
Online https://www.dol.gov/agencies/whd/contact/complaints
Phone 1-866-487-9243 (toll-free)
Portland WHD office 1220 SW 3rd Ave., Suite 640, Portland, OR 97204 — (503) 326-3057
Deadline 2 years from violation (3 years if willful)

Option 3: Private Lawsuit

Employees may file a lawsuit against their employer in state or federal court under ORS § 653.055 and/or 29 U.S.C. § 216(b). Oregon law provides the following remedies:

  • Unpaid overtime wages in full
  • Civil penalties under ORS § 652.150 (penalty wage for failure to pay wages at termination)
  • Reasonable attorney’s fees and court costs (ORS § 653.055)

Under the FLSA, additional remedies include liquidated damages equal to the unpaid overtime amount (effectively doubling recovery) and attorney’s fees.

Statute of Limitations Summary
Claim type Deadline
Oregon overtime wages (ORS § 653.055) 2 years from when wages were earned
Oregon general wage claims (ORS § 652) 6 years from when wages were earned
FLSA overtime 2 years (3 years if willful)

Retaliation Protection

Under ORS § 653.060 and 29 U.S.C. § 215(a)(3), employers cannot retaliate against employees for:

  • Filing an overtime wage complaint with BOLI or the DOL
  • Participating in an overtime wage investigation
  • Testifying in proceedings related to overtime violations

Source: ORS § 653.055 — https://www.oregonlegislature.gov/bills_laws/ors/ors653.html | Oregon BOLI Complaint Center — https://complaints.boli.oregon.gov | 29 U.S.C. § 216(b) — https://www.dol.gov/agencies/whd/overtime

Penalties for Overtime Violations in Oregon

Federal FLSA Penalties
Penalty type Amount
Back wages Full amount of unpaid overtime owed
Liquidated damages Equal to unpaid wages (effectively doubles recovery)
Civil monetary penalty Up to $2,451 per violation (willful or repeated — adjusted annually)
Criminal prosecution Willful violations: fines up to $10,000; second offense: up to 6 months imprisonment

Source: 29 U.S.C. § 216 — https://www.dol.gov/agencies/whd/overtime

Oregon State Penalties

Under ORS § 653.055 and ORS § 653.256, the following state-level remedies and penalties apply:

  • Back wages: Full amount of unpaid overtime wages owed to the employee
  • Civil penalty (willful violations): BOLI may assess a civil penalty up to $1,000 per willful violation of ORS § 653.261 (ORS § 653.256)
  • Manufacturing/cannery coercion penalty: If an employer coerces an employee into consenting to work more than 55 hours per workweek, BOLI may assess:
    • $2,000 per violation (for consent obtained under the general provision)
    • $3,000 per violation (for consent obtained under the 4-hour voluntary extension provision)
  • Attorney’s fees: Prevailing employees may recover reasonable attorney’s fees and costs under ORS § 653.055
  • Liquidated damages (manufacturing/cannery/agricultural overtime): ORS § 652.020 provides for liquidated damages equal to twice the employee’s overtime wages earned during the period of violation, in addition to other remedies

Source: ORS § 653.055 — https://www.oregonlegislature.gov/bills_laws/ors/ors653.html | ORS § 653.256 — https://www.oregonlegislature.gov/bills_laws/ors/ors653.html | ORS § 652.020 — https://www.oregonlegislature.gov/bills_laws/ors/ors652.html

Meal Break Penalty (2026 Update)

In a November 2025 decision, the Oregon Court of Appeals held that non-exempt employees who receive a meal break shorter than 30 minutes are entitled to payment for a full 30 minutes of work time, regardless of the actual length of the break. Additionally, the court held that such claims carry a six-year statute of limitations as wage claims and are subject to waiting-time penalties upon termination of employment.

Source: ORS § 653.261 — https://www.oregonlegislature.gov/bills_laws/ors/ors653.html | Oregon BOLI, Legislative Updates — https://www.oregon.gov/boli/employers/pages/legislative-updates.aspx

Oregon Overtime Law Updates (2025–2026)

Federal Changes Affecting Oregon

  • July 4, 2025: One Big Beautiful Bill Act (P.L. 119-21) signed — created federal income tax deduction for qualified overtime compensation for tax years 2025–2028 (IRC § 225)
  • November 15, 2024: U.S. District Court (E.D. Texas) vacated the DOL salary threshold rule — the exempt threshold remains $684/week ($35,568/year)

Oregon Changes

  • July 1, 2025: Oregon minimum wages increased to $16.30/hour (Portland metro), $15.05/hour (standard), and $14.05/hour (nonurban counties), effective through June 30, 2026 — adjusting the minimum overtime rate accordingly
  • January 1, 2025: Agricultural overtime threshold reduced from 55 hours/week (2023–2024) to 48 hours/week (2025–2026), per ORS § 653.272. The threshold will drop to 40 hours/week effective January 1, 2027
  • January 1, 2026: Oregon SB 906 took effect, requiring employers to provide new hires with written disclosures listing all pay rate types, including overtime. Disclosures must be reviewed and updated annually by January 1
  • November 26, 2025: Oregon Court of Appeals ruled that non-exempt employees who receive a shortened meal break are entitled to 30 minutes of pay regardless of actual break length, with a six-year statute of limitations for such claims
  • 2022: ORS § 652.020 amended by SB 1513 to extend daily overtime and manufacturing hour protections to bakeries and tortilla factories

Oregon State Income Tax and Overtime

  • 2025 tax year: Oregon conformed to the federal overtime tax deduction via rolling conformity — FLSA-covered workers may claim the deduction on both their federal and Oregon state returns (Oregon DOR, 2025 Publication OR-17)
  • Early 2026: Oregon passed Senate Bill 1507, which partially disconnected Oregon’s tax code from certain federal OBBBA provisions. The overtime and tips income tax deductions were retained — Oregon did not disconnect from the federal overtime deduction

Pending Legislation

  • Oregon HB 2234 (2025 session): Would create a standalone Oregon personal income tax subtraction for overtime pay received, applicable to tax years beginning January 1, 2026, through December 31, 2031. The subtraction would apply to overtime pay attributable to hours beyond standard work hours, required to be compensated under labor regulations, and properly reported on the taxpayer’s federal return. As of March 2026, HB 2234 remains in committee.

Last reviewed: March 3, 2026 Next scheduled review: June 3, 2026

Frequently Asked Questions About Overtime in Oregon

Does Oregon have its own overtime law?

Yes. Oregon has its own overtime law under Oregon Revised Statutes § 653.261, which requires overtime pay at 1.5 times the regular rate for hours worked over 40 in a workweek. Oregon’s law also adds daily overtime for manufacturing and cannery workers and phases in overtime protections for agricultural workers. When Oregon law and federal law differ, the standard more favorable to the employee applies.

What is the overtime rate in Oregon in 2026?

The overtime rate in Oregon is 1.5 times the employee’s regular rate of pay. Based on Oregon’s minimum wages effective July 1, 2025 through June 30, 2026, the minimum overtime rates are $24.45/hour (Portland metro, based on $16.30/hour), $22.58/hour (standard, based on $15.05/hour), and $21.08/hour (nonurban counties, based on $14.05/hour). Oregon does not require double time.

Does Oregon require daily overtime?

Yes — but only for specific industries. Oregon requires overtime after 10 hours in a workday for employees of manufacturing establishments (ORS § 652.020) and canneries, driers, and packing plants (ORS § 653.265). For most other workers, overtime is calculated on a weekly basis only, and working more than 8 hours in a day does not trigger overtime unless total weekly hours exceed 40.

Is mandatory overtime legal in Oregon?

Under both Oregon law and the FLSA, employers may generally require adult employees to work overtime. Oregon does not have broad mandatory overtime restrictions. Specific exceptions apply to manufacturing establishment employees (13-hour daily maximum), correctional facility nurses (ORS § 653.268), and situations where an employer coerces an employee to exceed 55 hours per workweek (ORS § 652.020).

Am I exempt from overtime in Oregon?

Exemption depends on both salary level and job duties. Under the FLSA (the applicable standard in Oregon), employees must earn at least $684/week on a salary basis AND perform qualifying executive, administrative, or professional duties. Oregon does not set a higher state salary threshold, but the burden of proving exempt status falls on the employer, not the employee.

Can salaried employees get overtime in Oregon?

Yes. Being paid a salary does not automatically make an employee exempt. Oregon BOLI explicitly warns employers that salaried employees who do not meet both the salary level ($684/week) and the duties tests are nonexempt and entitled to overtime pay. Misclassifying salaried employees as exempt creates liability for unpaid overtime.

Is overtime taxed in Oregon?

Overtime pay is subject to both federal and Oregon state income taxes. However, under the One Big Beautiful Bill Act (tax years 2025–2028), FLSA-covered nonexempt employees may deduct up to $12,500 (or $25,000 if married filing jointly) of the premium portion of overtime from federal taxable income. Oregon conformed to this federal deduction for the 2025 tax year, and Oregon retained conformity under SB 1507 for 2026 and beyond. Oregon HB 2234 — pending as of March 2026 — would create an additional state-specific overtime subtraction for tax years 2026–2031.

How do I calculate the overtime tax deduction?

For time-and-a-half overtime pay, the deductible amount is one-third of total overtime pay. For example, if you earned $6,000 in total overtime at time-and-a-half, the qualified overtime compensation is $2,000. The IRS confirms this method in Notice 2025-69. The deduction is taken on Schedule 1-A of Form 1040.

How do I file an overtime complaint in Oregon?

File a wage claim with the Oregon Bureau of Labor and Industries (BOLI) online at https://complaints.boli.oregon.gov or by calling 971-245-3844. You can also file with the U.S. DOL Wage and Hour Division at 1-866-487-9243 or online at https://www.dol.gov/agencies/whd/contact/complaints. The Oregon statute of limitations for overtime wage claims is 2 years from the date wages were earned; the FLSA deadline is 2 years (3 years for willful violations).

Can my employer fire me for refusing overtime in Oregon?

In most cases, yes. Oregon is an at-will employment state, and employers may discipline or terminate employees who refuse scheduled overtime, unless a specific law, contract, or collective bargaining agreement provides otherwise. However, employers cannot retaliate against employees who file overtime complaints or participate in wage investigations (ORS § 653.060; 29 U.S.C. § 215(a)(3)).

Can my employer give comp time instead of overtime pay in Oregon?

Not in the private sector. Under both Oregon law and the FLSA, private-sector employers cannot substitute compensatory time off for overtime pay. Public-sector employers (state and local government) may offer comp time at 1.5 hours per overtime hour, up to 240 hours (or 480 hours for public safety and seasonal workers), provided a prior agreement exists (29 U.S.C. § 207(o)).

Does working on weekends or holidays count as overtime in Oregon?

No. Under both Oregon law and the FLSA, working on weekends or holidays does not automatically constitute overtime. Overtime depends on total hours actually worked in the workweek. Premium pay for Saturdays, Sundays, or holidays may be excluded from the regular rate for overtime calculation purposes if it is a genuine premium rate, not simply a replacement for regular hours.

What is the statute of limitations for overtime claims in Oregon?

Oregon has a 2-year statute of limitations for unpaid overtime claims under ORS § 653.055, measured from the date the wages were earned. Oregon’s general wage claim statute of limitations is 6 years. Under the FLSA, the deadline is 2 years (3 years for willful violations). The longer applicable deadline governs the specific claim type.

What happens if my employer doesn’t pay overtime in Oregon?

Employees may recover unpaid overtime wages, civil penalties, and attorney’s fees under ORS § 653.055. For manufacturing or cannery overtime violations, ORS § 652.020 additionally provides liquidated damages equal to twice the unpaid overtime wages. Under the FLSA, employees may also recover liquidated damages equal to the unpaid amount (29 U.S.C. § 216(b)).

Do Oregon agricultural workers get overtime?

Yes, with a phased schedule. Oregon agricultural workers are entitled to overtime after 48 hours per workweek in 2025–2026, decreasing to 40 hours per workweek starting January 1, 2027 (ORS § 653.272). Certain categories of agricultural workers, including immediate family members of the employer and certain piece-rate harvesters, are excluded from these protections.

I work in a Portland area manufacturing plant. When does my daily overtime start?

Under ORS § 652.020, manufacturing establishment employees in Oregon earn overtime after 10 hours worked in a single workday — in addition to the standard 40-hour weekly threshold. Your employer must pay whichever calculation results in more overtime pay. The maximum hours you can be required to work is 13 in a 24-hour period, except in defined emergencies.

Sources and Verification

Primary Sources

Others

California
South Carolina
Nevada
Missouri
Tennessee
Maryland
New Jersey
Indiana
Colorado
Minnesota
Alabama
Michigan

Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current