Yes, employers in Oregon can require employees to work overtime. Regardless of whether the overtime is mandatory or voluntary, employers must pay overtime rates in accordance with the law. Private employers cannot offer compensatory time in lieu of overtime pay.
Oregon Labor Laws
Oregon Minimum Wage
The Oregon Minimum Wage poster has been updated to reflect the new minimum wage rates effective July 1, 2021:
- $14.00 per hour inside the Portland Metro area
- $12.00 per hour in non-urban counties
- $12.75 per hour in the remainder of the state
Oregon Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.
History of Oregon Labor Laws
Oregon has a rich history of labor appreciation, labor standards enforcement, and pioneering employment laws:
- 1887: Oregon declared the first Labor Day in the U.S., seven years before it became a national holiday.
- 1919: The state established the State Board of Conciliation and Arbitration to handle labor disputes, leading the nation.
- Early Wage and Labor Laws: Oregon’s first enforceable wage and labor law set a precedent for other states.
- 1949: Oregon took early action against discrimination based on color.
In recent years, Oregon has continued to strengthen worker protections with several new laws, including:
- Requiring employers to offer sick leave (both paid and unpaid in some cases)
- Prohibiting employers from asking about criminal history on job applications
- Increasing restrictions on non-compete contracts
- Adding protections for workers’ social media postings
Municipality Minimum Wage Laws
Oregon addresses minimum wage with a three-tiered system that includes the Portland metro area, urban Oregon, and rural Oregon areas. Cities cannot set independent minimum wages.
Urban Oregon
Urban Oregon includes any area not specifically designated as the Portland metro area or a non-urban county. This is often referred to as the standard minimum wage for the state.
- As of July 1, 2020: $12 per hour
- Annual Increase: 75 cents each year through July 2022
- Starting July 2023: Annual adjustments based on the Consumer Price Index (CPI)
Portland Metro
The Portland metro area minimum wage applies to employers within the designated urban growth boundary (UGB) of Portland. Oregon provides a map lookup tool and a static map of the UGB for employers online.
- As of July 1, 2020: $13.25 per hour
- Annual Increase: 75 cents each year through 2022
- Starting July 2023: $1.25 per hour more than the standard Oregon rate, with annual adjustments based on the CPI
Non-Urban Counties
Oregon designates 18 counties as non-urban.
- As of July 1, 2020: $11.50 per hour
- Annual Increase: 50 cents each year through 2023
- Starting July 2023: $1 per hour less than the standard Oregon rate, with annual adjustments based on the CPI
The non-urban counties include Baker, Klamath, Coos, Lake, Crook, Malheur, Curry, Morrow, Douglas, Sherman, Gilliam, Umatilla, Grant, Union, Harney, Wallowa, Jefferson, and Wheeler.
Oregon Minimum Wage Exemptions
In addition to federal exemptions, Oregon exempts certain job types from both minimum wage and overtime laws. Some classifications are only exempt from overtime laws. However, minors and trainees are not exempt from the minimum wage.
Jobs Exempt from Both Minimum Wage and Overtime Laws in Oregon:
- Certain agricultural employees
- Livestock production workers
- In-home childcare workers
- Casual domestic workers serving in a family home
- Some administrative, executive, and professional workers
- U.S. Government employees
- Students employed by their primary or secondary educational institutions
- Outside salespersons
- Taxi drivers
- Management and maintenance employees of multi-unit dwellings living on-site
- Seasonal camp workers (subject to income limits on the camps)
- Employees of non-profit conference areas operating for charitable, nonprofit, or religious purposes
- Volunteer firefighters
- Companion workers for elderly, disabled, and infirm persons in their homes
- Some on-site resident managers of licensed adult foster care homes
- Inmates
- Some volunteer resident public campground hosts
Oregon Posting Requirements
In addition to the federally mandated labor law posters, Oregon has specific requirements based on the size of the employer.
For Employers with Fewer than 25 Employees:
- Oregon State Minimum Wage
- Oregon OSHA
- Oregon Protections for Victims of Domestic Violence, Harassment, Sexual Assault & Stalking
- Federal Minimum Wage
- “EEO is the Law”
- Federal Polygraph Protection
- Federal USERRA (military rights)
- Equal Pay
For Employers with 25 or More Employees:
- All of the above, plus:
- Oregon Family Leave Act
- Federal FMLA Information
Additional Requirements for Agricultural Employers:
- Specific agricultural labor law posters
Federally Required Posters:
- Minimum Wage
- Family Leave
- Domestic Violence and the Workplace
- Safety and Health Protection on the Job
- Pregnancy Accommodations
- Sick Time
- Equal Pay
- No Smoking Sign
- Workers’ Compensation (must be obtained from the state)
- Unemployment Insurance (must be obtained from the state)
Additional Posters:
- Agricultural Labor Laws
Tipped Wage in Oregon
Oregon mandates that nonexempt employees receive the applicable minimum wage, regardless of any tips they earn. Employers are not permitted to claim a tip credit or reduce the hourly wage of tipped employees based on the tips they receive or are expected to receive.
As of July 2020, the minimum wage in Oregon is set at $12 per hour, with specific rates for different regions:
- Non-urban counties: $11.50 per hour
- Portland metro area: $13.25 per hour
These rates are scheduled to increase annually on July 1.
While some states allow employers to deduct credit card processing fees from tips received on credit cards, Oregon’s wage laws do not specifically address this practice, neither permitting nor prohibiting it.
Oregon does not have its own tip pooling laws and instead follows federal regulations. Similarly, Oregon does not prohibit the federally allowed practice of adding mandatory fees to bills (such as for large parties at restaurants), with these fees going to the employer rather than the employee. To mitigate potential confusion for customers and the resulting lower tips for servers, the IRS introduced incentives in 2014 for employers to discontinue this practice.
Overtime Wage in Oregon
Oregon mandates overtime pay at 1.5 times the employee’s regular rate of pay.
Salaried Workers:
- Salaried employees are not automatically exempt from overtime pay.
- Classification must follow federal and state definitions of an exempt employee.
- The regular rate of pay is an average hourly rate and must not fall below the minimum wage after adjustments like holiday pay, premium Saturday pay, or gifts.
Overtime Definition:
- Overtime is any time worked over 40 hours in one workweek.
- Employers cannot combine workweeks to count hours worked in a two-week, 80-hour period.
- There are no restrictions on daily hours worked for overtime calculations, except for employees of government agencies, manufacturing facilities, canneries, and some hospital employees.
Industry-Specific Rules:
- Some industries, minor workers, and specific jobs may have other daily work limits unrelated to overtime pay.
- Normal pay rates apply until the 40-hour threshold in a workweek is reached.
- Overtime pay is not required for holidays.
Special Overtime Rules:
- Employees of government agencies, manufacturing facilities, canneries, and some hospital employees have varying overtime rules.
- Specific manufacturing and cannery jobs may require overtime pay after 10 hours worked in a single day.
- Since August 2017, facilities must compare daily and weekly overtime for each employee and use the method that results in the highest pay.
Additional Considerations:
- Time worked off the clock, even if “voluntary,” may count toward overtime.
- Start-of-day and end-of-day duties, such as setting up a register or cleaning the work area, may be eligible for overtime calculations in some cases.
Child Labor Laws in Oregon
In Oregon, anyone under the age of 18 is considered a minor.
Work Permits and Employment Certificates:
- Since September 1995, minors no longer need individual work permits.
- Employers must obtain annual employment certificates to hire minors and verify their age before hiring.
Employment Restrictions for Minors Under 14:
- Generally prohibited from working, with few exceptions (mostly agricultural).
- Minors as young as 12 can pick crops if their parents also work on the same farm and other restrictions are met.
Labor Law Protections for Minors:
- Minors are subject to the same labor laws as adults, including minimum wage, overtime, workers’ compensation, and rest break rules.
- Nonprofit youth camps are exempt from minimum wage and overtime laws.
Discrimination and Harassment Protections:
- Minors are not covered by state age discrimination laws but are protected under other state and federal discrimination and anti-harassment laws, including protections against sexual harassment.
Shift Cancellation Protections:
- If a minor’s shift is canceled after they arrive at work, they are entitled to half of the shift’s pay or one hour of pay, whichever is greater.
Hazardous Job Restrictions:
- Certain hazardous jobs are prohibited for minors, with fewer restrictions for 16- and 17-year-olds compared to 14- and 15-year-olds.
- For example, 16- and 17-year-olds may operate powered lawn mowers, while 14- and 15-year-olds may not.
Driving Restrictions:
- Minors, except in specific agricultural situations, are prohibited from driving on public roads for work, such as making deliveries.
Employer Recordkeeping Requirements in Oregon
In addition to federal employment record requirements under the Fair Labor Standards Act (FLSA) and other acts, Oregon mandates that employers maintain specific employee time records.
Record-Keeping Requirements:
- Employers must keep records of all hours worked for at least two years, or longer if required by federal law.
Pay Stub Information: Employers must include the following information on pay stubs:
- Employee’s name
- Employer’s address and identifier
- Date of pay
- Dates covered by the pay period
- Day rate
- Gross and net pay
- Itemized deductions and reasons
- Any allowances claimed
- Itemization of how pay is calculated (e.g., hours at regular pay and hours at overtime pay)
Oregon Labor Law Questions & Answers
For Minors Aged 16 to 17:
- Can work unlimited hours per day but are limited to 44 hours per week.
For Minors Aged 14 to 15:
- May work up to 40 hours per week when school is not in session.
- Limited to 18 hours per week when school is in session.
- Daily work is limited to 3 hours on school days and 8 hours on non-school days.
- Work hours are restricted to between 7 a.m. and 7 p.m., extended to 9 p.m. from June 1 to Labor Day.
- Generally, those under 14 are not permitted to work under current Oregon rules.
For Nonprofit Youth Camps:
- Minors aged 16 and older can work without hour restrictions.
- Minors under 16 must work between 6 a.m. and 10 p.m., limited to 8 hours a day and 40 hours a week.
Oregon is an at-will employment state, meaning employers can terminate employees without cause. However, firings that violate an employee’s contract, local, state, or federal laws, or other labor and employment laws could be considered wrongful termination. Labor laws protect employees from retaliation for whistleblowing or reporting illegal activities, such as wage law violations.
Employers in Oregon cannot claim a tip credit toward the minimum wage owed to employees. Tipped employees must be paid at least the full minimum wage applicable to their location. In areas with higher local minimum wages, the higher rates apply. Employers cannot collect or remove tips from employees except for valid tip pool contributions as defined by federal law.
Oregon Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.