On April 15, Oregon’s Governor Brown signed HB 4002 into law which will require employers to pay overtime to agricultural employees beginning January 1, 2023, when the employee works:
- Over 55 hours per workweek for calendar years 2023 and 2024.
- Over 48 hours per workweek for calendar years 2025 and 2026.
- Over 40 hours per workweek for calendar year 2027 and each year thereafter.
The overtime rate is one and one-half times the worker’s regular rate of pay.
The new law also clarifies that “workweeks can start on any day of the week—and at any hour of the day—and don’t need to coincide with a calendar week; and employers can change the beginning of an agricultural worker’s workweek if the change is intended to be permanent and not to evade the overtime law.”
This law is a significant change for employers of agricultural employees who have previously been exempt from overtime requirements. Employers with employees covered by this new law should take steps to adjust timekeeping and payroll processing, employee handbook policies and develop appropriate communications to employees.
Please do not hesitate to reach out to Cascade if you have questions.