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July 2022: Oregon Revises Overtime Laws for Bakers and Farmworkers

21 Jul

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Update Applicable to:
All employers with bakery workers and/or farmworkers in the state of Oregon.

What happened?
On April 19, 2022, Governor Brown signed Senate Bill 1513 (SB 1513), revising the Beaver State’s overtime rules for bakers. In addition, the legislature passed House Bill 4002 (HB 4002), revamping the overtime entitlements for farmworkers.

What are the details?

Bakery Workers
Effective January 1, 2023, any manufacturing establishment classified as a “bakery” by the North American Industry Classification System (NAICS) may not discipline an employee who refuses to work mandatory overtime unless the employer has provided at least five days’ advance notice.

The advance notice must specify the anticipated shift’s date and time. The bill authorizes Oregon’s Bureau of Labor and Industries to investigate violations and enforce compliance.

Farmworkers
Effective June 6, 2022, and beginning on January 1, 2023, HB 4002 extends overtime entitlements to agricultural workers, dairy employees, employees involved with raising livestock, bees, or fur-bearing animals, and some others. Overtime obligations are phased in under the new law.

During the first phase, which extends through 2024, covered employers must pay overtime at the rate of one and one-half an employee’s regular rate when the employee works over 55 hours in a week.

For calendar years 2025 and 2026, the overtime requirement begins at 48 hours per week, and, beginning in January 2027, the requirement will apply to all work in excess of 40 hours per week.

For more information, please see the links below:

Senate Bill 1513 (SB 1513

House Bill 4002 (HB 4002)

Article

What do employers need to do?
Employers with bakery workers should review the links provided above and avoid disciplining an employee who refuses to work if the employer has not provided a five-day notice.

Employers of farmworkers should also review the links provided above and adjust their payroll policies regarding overtime to comply with the law.

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's Oregon PEO services can help you navigate complex employment laws and keep your business compliant.


This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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