Oregon law establishes overtime threshold for agricultural workers

05/05/22

Author: ADP Admin/Wednesday, May 4, 2022/Categories: Compliance Corner

On April 15, 2022, Oregon Governor Kate Brown signed into law House Bill 4002 (HB 4002), which establishes the maximum hours an agricultural worker may work before overtime pay is required. Under current law, Oregon employers are not required to pay overtime to agricultural workers.

The Details: 

Oregon law defines "agriculture" to include farming in all its branches including cultivating and tilling the soil; dairying; producing, growing, and harvesting agricultural or horticultural commodities; raising livestock, bees, fur-bearing animals, or poultry; and farming operations, including preparing for market, delivering products to storage or to market or to carriers for transportation to market. "Agriculture" generally does not include forest products and the harvesting of timber, but workers engaged in the planting, pruning, and harvesting of Christmas trees are considered to be agricultural employees who are not required to receive overtime compensation for hours worked beyond 40 in a week.

House Bill 4002 mandates the following:

·       For calendar years 2023 and 2024, agricultural workers must be paid overtime at 1.5 times their regular rate of pay for hours worked in excess of 55 hours per week.

·       For calendar years 2025 and 2026, agricultural workers must be paid overtime at 1.5 times their regular rate of pay for hours worked in excess of 48 hours per week.

·       For calendar years 2027 and thereafter, agricultural workers must be paid overtime at 1.5 times their regular rate of pay for hours worked in excess of 40 hours per week.

Note: Individuals employed in the agricultural industry with primarily executive, administrative, or professional job duties are exempt from overtime-pay requirements for agricultural workers if they: perform predominantly intellectual, managerial, or creative tasks; exercise discretion and independent judgment; and earn a salary and are paid on a salary basis.

Next Steps:

With certain exceptions, Oregon employers must pay agricultural workers overtime as defined under Oregon law in accordance with the HB 4002.

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