Oregon Overtime Pay Laws 2026: Manufacturing 10-Hour Rule & Rates

Oregon Overtime Rules in 2026

Oregon follows the federal 40-hour weekly overtime rule for most workers, but layers on industry-specific daily overtime rules that make it one of the more complex states for payroll. The big three categories with extra rules are manufacturing, agriculture, and canneries/seafood processors.

Oregon's Three-Tier Minimum Wage (July 2026)

Oregon uniquely uses geographic tiers that adjust each July:

| Tier | Counties | 2026 min wage | OT rate (1.5×) |

|---|---|---|---|

| Portland Metro | Multnomah, Washington, Clackamas (Metro) | $16.66 | $24.99 |

| Standard | All other urban counties | $15.55 | $23.33 |

| Non-urban | Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, Wheeler | $14.70 | $22.05 |

Calculate your exact pay in the Oregon Overtime Pay Calculator.

The Manufacturing 10-Hour Daily OT Rule (ORS 652.020)

Oregon manufacturing employees (including food processors, lumber mills, sawmills) are entitled to overtime after 10 hours in a single day, regardless of the weekly total. This is unique nationally — most states don't have daily OT, and California's daily OT kicks in at 8 hours.

Example — Salem sawmill worker at $22/hour:

• Works 11 hours Monday: 1 hour at $33 OT
• Works 10-hour shifts Tue–Fri: no daily OT (just at the 10-hour line)
• Weekly total: 51 hours → 11 hours over 40 also get OT
• The higher of daily or weekly OT applies (no double-counting)

Agricultural Overtime — Phased In

Under Oregon's 2022 farmworker overtime law (HB 4002), agricultural workers are entitled to overtime on a phase-in schedule:

| Year | OT threshold |

|---|---|

| 2025 | After 48 hours/week |

| 2026 | After 44 hours/week |

| 2027+ | After 40 hours/week (federal standard) |

This makes Oregon one of only 7 states extending overtime protections to farmworkers (CA, WA, NY, CO, HI, MN, MD also do so on various schedules).

Tipped Workers — No Tip Credit

Oregon is a no-tip-credit state. Servers, bartenders, and baristas must receive the full minimum wage in cash before tips. A Portland Metro server earns at least $16.66/hour cash plus tips, with OT at $24.99/hour cash.

This makes Oregon tipped OT among the highest in the U.S., tied with Washington and Alaska. See our tipped employee overtime guide.

Cannery & Seafood Processing

Under ORS 652.020, cannery workers (mainly along the coast and Columbia River) follow special rules:

• Daily overtime after 10 hours OR weekly overtime after 40 hours, whichever is greater
• During the peak season, maximum 13 hours/day is permitted

Salaried Exempt Employees

Oregon uses the federal $684/week ($35,568/year) threshold. There is no separate Oregon state threshold (unlike Washington next door, which has a much higher state threshold).

Mandatory Overtime Limits in Oregon

• Nurses: Oregon ORS 441.166 prohibits mandatory OT for hospital nurses except in declared emergencies
• Manufacturing: limited to 13 hours/day under most circumstances
• Minors: 16-17 year olds limited to 44 hours/week

Sick Leave & OT Interaction

Oregon's paid sick leave law requires 1 hour per 30 worked, capped at 40 hours/year for employers with 10+ workers (6+ in Portland). Paid sick hours do not count toward the 40/44/48-hour OT threshold.

How to File an Oregon Overtime Claim

• Oregon Bureau of Labor and Industries (BOLI) — free, 6-year statute for civil penalties, 2 years for wages
• Federal FLSA lawsuit (2–3 years + equal liquidated damages)
• Triple damages are available under ORS 653.055 for willful violations

FAQ

Do Portland office workers get daily overtime?

No — office, retail, and most service work follows the federal 40-hour weekly rule. Daily overtime in Oregon is reserved for manufacturing, canneries, and seafood processors.

Does Oregon have double-time?

No. Oregon requires only 1.5× the regular rate; double-time exists only in union contracts.

How are commissions and bonuses handled?

Non-discretionary bonuses and commissions must be added to the regular rate before the OT multiplier, increasing your effective OT pay. See how bonuses affect overtime pay.

Does the 2026 No Tax on Overtime deduction apply in Oregon?

Yes — federal deduction up to $12,500 ($25,000 joint) applies. Oregon state income tax (4.75%–9.9%) still applies to all OT wages. See How Overtime Is Taxed 2026.