While this lawsuit has been pending, in December 2016, BOLI quietly changed its interpretation on daily and weekly overtime pay requirements for those workers employed in a “mill, factory, or manufacturing establishment.” In our alert, we explained that BOLI’s new rule required those employees working over 10 hours in a day to be paid both daily and weekly overtime. That new interpretation was a break with BOLI’s past practice of requiring employers to pay only the greater of the daily or weekly overtime in a workweek.
Judge Dailey’s opinion explained that BOLI’s new interpretation failed to give effect to the relationship between Oregon’s general overtime law and the particular daily overtime law for workers in mills, factories, and manufacturing establishments. Her opinion specifically states that the pre-December BOLI interpretation is the proper interpretation for calculating daily and weekly overtime requirements and dismissed the lawsuit’s claims seeking both daily and weekly overtime payments in the same workweek. While Judge Dailey’s decision will likely be appealed, at this point in time, employers are only required to pay “the greater” of daily or weekly overtime owed to employees.
Additionally, Senate Bill 984 is pending before the Oregon legislature, which would codify the “greater of the two” calculation method. However, what is still unclear is the scope of the definition of “mill, factory, or manufacturing establishment.” Affected employers should contact their state legislators and urge them to pass Senate Bill 984 and to clarify what constitutes a “manufacturing establishment.”
We will keep you apprised of further developments as they unfold.
Electronic Alerts are written by Barran Liebman attorneys for their clients and friends. Alerts are not intended as legal advice, but as employment law, labor law, and employee benefits announcements. If this has been forwarded to you, and you would like to begin receiving Electronic Alerts directly, please email or call Traci Ray at 503-276-2115. Copyright ©2018 by Barran Liebman LLP.
Las Alertas electrónicas son escritas por abogados de Barran Liebman para sus clientes y amigos. Las Alertas no son proveídas como asesoramiento legal, sino solo como anuncios de leyes de empleo, leyes laborales y beneficios de empleo. Si esto ha sido remetido a usted y quisieras empezar a recibir las Alertas directamente, por favor mándanos un correo electrónico o llama a Traci Ray al 503-276-2115. Derechos de autor ©2018 por Barran Liebman LLP.