Overtime laws by state › Oregon

Oregon Overtime Laws (2026)

1.5x after 40 hours in a week. Manufacturing establishments (mills, factories) must also pay 1.5x after 10 hours in a day; when both daily and weekly overtime are owed, the employer pays the greater, not both. Weekly hour caps apply in manufacturing.

Who is covered

Overtime protections cover "non-exempt" employees. Most hourly workers are non-exempt. Salaried workers are exempt only if they earn at least $684.00 per week in Oregon and their primary duties meet the executive, administrative, professional, computer or outside-sales tests. Independent contractors are not covered by overtime law at all, which is why misclassification claims often start as overtime claims.

How the regular rate works

Overtime is 1.5x the regular rate, which is all straight-time compensation for the week (hourly pay plus nondiscretionary bonuses, shift differentials and commissions) divided by hours worked. Discretionary bonuses, gifts, expense reimbursements and paid time off are excluded. An employee paid $20/hour with a $100 attendance bonus in a 50-hour week has a regular rate of $22.00, and ten overtime hours pay $33.00 each — not $30.00.

Federal baseline

The Fair Labor Standards Act requires 1.5x after 40 hours in a workweek for covered, non-exempt employees, with a $684.00/week salary floor for the white-collar exemptions. Where Oregon law is more generous than the FLSA, the more generous rule applies; where it is less generous, the FLSA controls. Federal overtime rules

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