Oregon has long required companies employing workers in a manufacturing establishment to pay overtime for employees working over ten hours per day or forty hours in a week, whichever is greater. Those employees are also strictly limited to working a maximum of thirteen hours per day. However, recent changes from the legislature and a subsequent round of rulemaking from Oregon’s Bureau of Labor and Industries (BOLI) mean new rules for employers effective January 1, 2018. We explained the details of the law’s new provisions in our July alert and highlighted that the law limits manufacturing establishment employees to working a maximum of 55 hours in a workweek and requires a ten-hour rest period between shifts. There are only a few exceptions to this 55-hour workweek cap, including obtaining employees’ written consent to work up to 60 hours in a workweek or qualifying for the limited undue hardship exemption for businesses that process perishable products.
The problem employers now face is determining whether their employees fall under these special overtime rules as the scope of which employers the law covers is less than clear. The law states that “no person shall be employed in any mill, factory or manufacturing establishment in this state more than 10 hours in any one day.” The law also broadly defines a manufacturing establishment as an establishment engaged in “the process of using machinery to transform materials, substances or components into new products.” BOLI has explained that this definition is broad enough to capture commercial bakeries and breweries, but does not include restaurants.
A new provision in the law exempts employees who are not “engaged in the direct processing of goods.” However, BOLI’s latest draft rules define the direct processing of goods as “the use of machinery in the production of manufactured goods.” If this seems like a circular definition to you, that’s because it is. While BOLI may be attempting to clarify the new provisions in Oregon’s manufacturing establishment overtime laws, unfortunately, most employers are left wondering whether the law even applies to them. We encourage employers to contact BOLI with their concerns as soon as possible, as the last day to offer comment on the proposed rules is November 24, 2017.
For questions on how the manufacturing overtime rules may affect your workplace and how to prepare for the January 1, 2018 enforcement date, contact Nicole Elgin at Barran Liebman: firstname.lastname@example.org or (503) 276-2109.
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 ©2017 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 ©2017 por Barran Liebman LLP.