The framework
Oregon's law, on top of the federal floor
This guide assumes you already know the federal baseline: the Fair Labor Standards Act (FLSA) sets a nationwide floor of time-and-a-half after 40 hours in a workweek, with no federal daily trigger. If you need that baseline first, see the federal FLSA overtime guide — it is not repeated here. Everything below is what Oregon adds on top of that floor, and it only reaches specific industries.
Most Oregon employers only ever owe the federal-style 40-hour weekly rule — Oregon has no general daily overtime trigger. But under ORS 652.020, administered by the Oregon Bureau of Labor and Industries (BOLI), employees of mills, factories, and other manufacturing establishments — including canneries processing perishable products — get an additional daily trigger on top of that floor: 1.5x for hours worked over 10 in a day. This guide covers that industry-limited rule, how it interacts with Oregon’s general weekly standard, and the hour caps that come with it.
Who this reaches
An industry-limited daily rule, not a general Oregon rule
ORS 652.020’s daily trigger is scoped to named industrial categories, not to Oregon employment generally:
| Coverage | Daily threshold | Rate |
|---|---|---|
| Mills, factories, and other manufacturing establishments (including canneries processing perishable products) | Hours worked over 10 in a day | 1.5× |
| Sawmills, planing mills, shingle mills, and logging camps | Hours worked over 8 in a day, or 48 in a workweek | 1.5× |
| All other Oregon employment | No daily trigger — federal-style 40-hour weekly rule only | 1.5× |
A narrower, stricter version of the rule sits inside the same statute. ORS 652.020 sets separate — lower — limits for sawmills, planing mills, shingle mills, and logging camps: 8 hours in a day, or 48 hours in a workweek, rather than the 10-hour/55-hour standard that applies to mills, factories, and manufacturing establishments generally. An employer running one of these narrower operations does not get the more permissive 10-hour/55-hour figures — the stricter limit governs instead.
No pyramiding
The greater-of-daily-or-weekly computation
Oregon also applies a general weekly overtime standard — 1.5x for hours over 40 in a workweek — which the Commissioner of the Bureau of Labor and Industries is authorized to set by rule under ORS 653.261, at no more than one and one-half times the regular rate for hours beyond a 40-hour, eight-hour-per-day floor. For a covered manufacturing employee, that general weekly standard and the 10-hour daily rule both apply to the same week.
Where both would generate overtime in the same workweek, BOLI directs the employer to calculate pay two ways — once under the daily rule, once under the weekly rule — and pay whichever total is greater. The two triggers do not stack: an employer never pays daily overtime and weekly overtime on the same hour, only whichever single calculation produces the larger total for the week.
The ceiling
The 13-hour daily cap and the 55/60-hour weekly caps
ORS 652.020 permits a manufacturing employee to work up to three hours beyond the 10-hour daily limit — a hard ceiling of 13 hours in a day — provided every hour past the 10th is paid at 1.5x. Working beyond that 13-hour ceiling is not permitted at all for a covered manufacturing employee, aside from a narrow emergency allowance covered next — that allowance affects the required rest between shifts, not the 13-hour daily ceiling itself.
On the weekly side, the statute caps the workweek at 55 hours by default. An employee may request or consent, in writing, to work up to 60 hours in a workweek instead — but the employer cannot coerce that consent.
During a defined seasonal “undue hardship period” — when an employer is processing a perishable product such as an agricultural crop, meat, or fish — ORS 652.020 lets the employer extend the weekly cap further still: up to 84 hours a week for the first four workweeks of the period, and up to 80 hoursa week for the remainder, provided the employee has consented in writing and the employer has notified BOLI. That extended undue-hardship allowance cannot run longer than 21 workweeks in a calendar year. It is the provision that gives Oregon’s canneries their seasonal flexibility — it changes the weekly ceiling, not the 10-hour daily overtime trigger, which still applies throughout.
Between shifts
The mandatory 10-hour rest period between shifts
Separate from the hour caps above, ORS 652.020 sets a minimum rest requirement for the same covered manufacturing employees: an employer may not require an employee of a mill, factory, or other manufacturing establishment to begin a work shift less than 10 hoursafter the end of that employee’s previous work shift, if that previous shift totaled 8 hours or more. It is a floor on the turnaround between shifts, not a cap on hours worked in a day or week.
The same narrow emergency exception that applies to the 13-hour daily ceiling applies here too: an employer may require a shorter turnaround only where disruptions in business operations are caused by a power outage, a major equipment breakdown, severe weather, or a similar emergency outside the employer’s control. Ordinary business demand — a rush order, a staffing shortfall, a busy season — does not qualify.
Scope limit
The collective-bargaining carve-out
ORS 652.020’s daily-overtime and hour-cap provisions step aside where a genuine collective bargaining agreement covers the arrangement. The hour caps and the daily overtime requirement do not apply to employees represented by a labor organization for collective bargaining with their employer, provided the agreement itself sets limits on the required hours of work and overtime payment. A workforce being unionized is not, on its own, enough — the agreement has to actually address hours and overtime for the carve-out to apply.
Putting it together
A worked example: the same 40 hours, two different answers
Take a nonexempt manufacturing employee paid $24.00/hour, working a compressed four-day week:
| Day | Hours worked | How it splits |
|---|---|---|
| Mon | 12.0 | 10 × REG + 2 × OT1 |
| Tue | 12.0 | 10 × REG + 2 × OT1 |
| Wed | 12.0 | 10 × REG + 2 × OT1 |
| Thu | 4.0 | 4 × REG |
Run both of Oregon’s tests against this week:
| Test | Calculation | Total pay |
|---|---|---|
| Daily rule (ORS 652.020) | REG 34.0 hours + OT1 6.0 hours over the 10-hour mark on Mon–Wed | 34.0 × $24.00 + 6.0 × $36.00 = $1,032.00 |
| Weekly rule (ORS 653.261) | 40.0 total hours worked — not in excess of 40 | 40.0 × $24.00 = $960.00 |
| Rate code | Hours | Rate | Pay |
|---|---|---|---|
| REG | 34.0 | $24.00 | $816.00 |
| OT1 | 6.0 | $36.00 (1.5× $24.00) | $216.00 |
Had the same employee instead worked flat 8.0-hour days, Monday through Friday, for the same 40.0 hours, neither test would produce any overtime at all: no day would cross the 10-hour mark and the week would not cross 40 hours, so both the daily and weekly totals would come to the same $960.00 in straight pay. It is how the hours are distributed across the week — not the total worked — that decides whether Oregon’s manufacturing daily rule bites.
The comparison runs the other way just as often. Take a five-day week instead — 12.0 hours Monday and Tuesday, 8.0 hours Wednesday through Friday, for 48.0 hours total. The daily rule credits 4.0 hours of overtime (2.0 each on Monday and Tuesday), for a daily-rule total of $1,200.00. But the weekly rule finds 8.0 hours over the 40-hour mark, for a weekly-rule total of $1,248.00 — $48.00 more. Here the weekly rule governs instead, because BOLI’s greater-of test looks at whichever calculation actually produces more pay that week, not at which rule technically applies first.
From rules to pay
How In A Tick handles Oregon
A rule that requires comparing two entirely different calculations — one built around each individual day, one built around the whole week — and then paying whichever comes out ahead, is exactly the kind of arithmetic that goes wrong when it is worked out by hand, week after week, for every manufacturing employee on a roster. In A Tick models Oregon’s rules as configured region rules, and its overtime calculation engine runs the daily test and the weekly test against the actual clock times logged for the week, compares both totals, and applies whichever produces the greater result — deterministically, so the same timesheet always produces the same answer. Pay is never left to guesswork or to AI.
What In A Tick enforces regardless of which test governs a given week: accurate capture of the hours actually worked from real clock times, a complete audit trail of how every figure was reached, and a deterministic, payroll-ready calculation you can hand to whoever runs pay.
References
Sources
Every figure in this guide is drawn from official Oregon state government sources, listed below. Rates and thresholds are current as at the last-reviewed date.
- Oregon Bureau of Labor and Industries. (n.d.). Overtime. https://www.oregon.gov/boli/employers/Pages/overtime.aspx
- Oregon Bureau of Labor and Industries. (n.d.). Overtime: Manufacturing and canneries. https://www.oregon.gov/boli/employers/Pages/overtime-manufacturing-and-canneries.aspx
- Oregon State Legislature. (n.d.). ORS 652.020 — Maximum working hours in certain industries; overtime hours and pay; exemptions; penalties. https://www.oregonlegislature.gov/bills_laws/ors/ors652.html
- Oregon State Legislature. (n.d.). ORS 653.261 — Minimum employment conditions; overtime; rules; meal periods; exemptions; penalty. https://www.oregonlegislature.gov/bills_laws/ors/ors653.html