Oregon Overtime Pay Calculator

Oregon runs a three-region minimum wage system that directly affects overtime pay: a higher rate for the Portland metro urban growth boundary, a standard statewide rate, and a lower rate for nonurban counties. Effective July 1, 2026, those rates rise to roughly $17.45 in the Portland metro area, $15.95 statewide standard, and $14.95 in nonurban counties, all indexed for inflation under Or. Rev. Stat. §653.025. Overtime — 1.5 times the regular rate after 40 hours in a workweek — must be calculated using whichever regional minimum wage actually applies to where the work is performed, not where the company is headquartered.

Oregon also has a distinctive daily overtime rule limited to manufacturing establishments — mills, factories, and canneries — under Or. Rev. Stat. §653.261 and related administrative rules, requiring overtime pay for hours worked beyond 10 in a single workday in those specific industries, even if the worker doesn't hit 40 hours for the week. This rule doesn't apply broadly to all employers, only to manufacturing operations, and interacts with a separate rule capping most manufacturing employees' hours at 13 per day without special authorization.

Workers who move between Oregon's regions during a single pay period — for example, a traveling technician working some days in Portland and some in a nonurban county — must have their regular rate and overtime calculated based on the specific regional minimum wage applicable to each day's work location, which requires more detailed payroll tracking than most states demand.

Oregon's Bureau of Labor and Industries (BOLI) enforces wage and hour law, including overtime, and accepts complaints through its Wage and Hour Division. Most unpaid wage claims must be filed within two years, though claims framed as breach of contract for wages can sometimes extend to six years. BOLI can investigate, order back pay, and assess civil penalties against employers.

The manufacturing daily overtime rule creates a recurring trap: employers in food processing, wood products, and other manufacturing sectors common in Oregon sometimes apply only the 40-hour weekly rule, missing that a 12-hour shift in a cannery or mill triggers 2 hours of daily overtime regardless of the weekly total. Conversely, some non-manufacturing employers wrongly believe the daily overtime rule applies to them when it doesn't — the rule is genuinely limited to specific manufacturing establishment types defined in BOLI regulations.

Portland metro boundary lines don't always match city limits, so employers with multiple locations across the Portland area need to verify precisely which minimum wage zone each worksite falls into rather than assuming based on mailing address or general geography.

Oregon substantially exceeds federal overtime protections in two ways: its regional minimum wage system raises the overtime pay floor well above the federal $7.25 baseline in every part of the state, and its manufacturing daily overtime rule requires premium pay in a scenario — a long single shift under 40 hours weekly — that federal law would never cover on its own.

For workers outside manufacturing, the core overtime formula matches federal law (1.5x after 40 hours weekly), but the elevated regional minimum wages mean actual dollar amounts owed are considerably higher than the federal minimum would produce. Anyone unsure which of Oregon's three minimum wage zones applies to their job should check BOLI's published maps rather than assume.