Oregon Overtime Laws

April 20th 2026

Employers have a duty to pay their employees fairly for any extra hours they work. 

According to Oregon Labor Laws, if an employee works more than 40 hours in a week, they are entitled to receive overtime pay at one and a half times their regular rate of pay.

This article will provide information to successfully navigate Oregon’s overtime regulations, whether you’re an employer aiming for compliance or an employee defending your rights.

Oregon Overtime Laws Summary

State overtime law Overtime applies for hours worked over 40 in a workweek
Overtime pay rate 1.5x an employee’s regular hourly rate
Oregon minimum wage $15.05 per hour
Minimum overtime wage $22.58 per hour
Comp time Allowed for government employees
Salary threshold for overtime exemption $684 per week

This Article Covers

Oregon Overtime Rates

Oregon regulates overtime based on the federal Fair Labor Standards Act (FLSA). For any hours worked beyond a total of 40 in one work week, the majority of hourly employees in Oregon have the right to an overtime pay rate.

Overtime in Oregon is set at 1.5 times the regular hourly rate. Since the regular Oregon minimum wage is $15.05 per hour, this makes Oregon overtime minimum wage $22.58 per hour.

Overtime Entitlement in Oregon

According to Oregon overtime laws, overtime pay is required for any non-exempt employees. 

Employees who earn below $844 a week ($43,888 per year) and work in a non-exempt industry are entitled to overtime pay.

However, an employee’s overall eligibility for overtime pay will be based on what the job duties are as well as what type of business they are in.

Read more about Overtime Exceptions and Exemptions in Oregon.

Unauthorized Overtime in Oregon

If an employee works unauthorized overtime, an employer is still obligated to provide overtime compensation. However, an employer can take disciplinary action against that employee for violating the workplace policy without permission.

Overtime for Tipped Employees in Oregon

A tipped employee in Oregon is entitled to overtime compensation. However, the minimum wage for tipped employees in Oregon equals the regular minimum wage i.e $14.20.

Overtime for Salaried Employees in Oregon

In Oregon, some salaried employees are entitled to overtime pay. A salaried employee is someone who receives a set amount of pay regardless of how many hours they work. 

To determine a salaried employee’s overtime rate, an employer must first determine their employee’s hourly rate, which can be calculated using the following method:

Annual Salary divided by 52 weeks = Weekly Pay

Weekly Pay divided by 40 hours = Hourly Pay Rate

Then, take the hourly pay rate to calculate the overtime rate for salaried employees using the following formula:

Hourly pay rate x Overtime Hours x Overtime Rate (1.5)

It is important to note that if an employee’s salary covers less than 40 hours in a workweek, their regular rate will be added for every subsequent hour working up to the 40. Only after 40 hours will time-and-a-half be counted.

If an employee’s salary covers 40 hours in a workweek, then time-and-a-half will be paid for any hours over 40.

Overtime for Commissioned Employees in Oregon

Employees in Oregon who receive commissions are eligible for overtime at a rate of 1.5 times their regular hourly rate. Their regular hourly rate must include the commissions earned as well. However, they will only be given half of that rate for every overtime hour.

For example, let’s say an employee works 45 hours a week at a rate of $14.20/hour and receives $50 in commissions for that week. We need first to calculate the new regular hourly rate: 

(Total hours x Hourly Rate) + Commission

= (45 x 14.20) + 50

= $689

Then, divide that by the total hours worked in the week.

= $689 / 45

=$15.31 (new regular hourly rate)

To determine the overtime rate for the commissioned employees, we need to take that new regular hourly rate and halve it.

$15.31 / 2

= $7.66

Since the employee worked an extra 5 hours in the week, that makes his overtime compensation $38.30 ($7.66 x 5 hours).

The amount will vary according to the hours worked, hourly rate, and commission earned.

Overtime Exceptions and Exemptions in Oregon

Here you can find the exceptions and exemptions for overtime in Oregon:

  • Administration, executives, professionals, and outside sales who earn at least $844/week
  • Some agricultural workers
  • Workers engaged in the range production of livestock
  • Domestic workers in family homes, employed on a casual basis
  • Students enrolled in primary and secondary education institutions employed by the same institution
  • Operators of taxicabs
  • Workers living at the place of employment who must be available for emergency duties
  • Workers paid for specified hours, to be available for duty
  • Managers, assistant managers, and maintenance workers employed and lodged in multi-unit accommodations
  • Seasonal workers at educational camps — provided they earn less than $500,000 per year
  • Seasonal workers at nonprofit camps
  • Workers employed at nonprofit conference areas for educational, religious, and charitable purposes
  • Volunteer firefighters
  • Companions to elderly, disabled, or infirm people in their family homes
  • Resident managers of adult foster care homes
  • Inmate labor workers
  • Referees of youth and adult recreational soccer matches
  • Certain ski patrollers, golf course caddies, and marshals
  • Workers of independently owned and operated local enterprises engaged in the wholesale or bulk distribution of petroleum products
  • Workers in pursuance of an agreement made as a result of collective bargaining
  • Workers residing on the premises of hospitals or other establishments primarily engaged in the care of “the sick, the aged, or the mentally ill and defective”
  • Workers of nonprofit amusement or recreational park provided the establishment doesn’t operate more than 7 months per year
  • Workers involved in the fishing and processing of aquatic animal and vegetable life
  • Computer system analysts, programmers, software developers, and similarly skilled workers — provided their hourly rate is at least $27.63

Penalties for Unpaid Overtime in Oregon

In Oregon, if an employer does not provide overtime pay to their non-exempt employees, they can face civil penalties equal to 8 hours of the wage for each day the employer is late to pay the overtime wages.

It is important to note that the Oregon overtime civil penalty is limited to 30 days.

For example, if an employee earns a rate of $16 per hour, the maximum amount of overtime civil penalty they may receive is $3,840 ($16 x 8 x 30).

According to Oregon overtime laws, employers can be held liable for any unpaid overtime wages for 2 years from the date on which the wages were earned.

However, for willful overtime violations by an employer, the statute of limitations can increase to 3 years.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.