In other words, payroll savings to the employer come from having reduced an exempt employee’s salary, not from making occasional or periodic deductions from that salary. A salaried employee must be paid overtime unless they meet the test for exempt status as defined by federal and state laws, or unless they are specifically exempted from overtime by the provisions of the California Labor Code or one of the Industrial Welfare Commission Wage Orders regulating wages, hours and working conditions. Hourly employees in Oregon are almost always entitled to overtime for all hours worked in excess of 40 per workweek. Employers may not have to pay overtime to administrative, executive, professional, and outside sales personnel. federal law, however, when state and federal regulations conflict, employers subject to both laws must apply the standard that is most beneficial to the employee. For teachers or tutors - Teaching, tutoring, instructing, or lecturing in the activity of imparting knowledge and who is employed and engaged in this activity as a teacher in the school system or educational establishment or institution by which the employee is employed; Whose work requires the consistent exercise of discretion and judgment in its performance; and. The rest and meal period requirements of the Oregon administrative rule arise out of Oregon’s minimum wage law (ORS 653.010 to 653.261), and employees who are exempt from the minimum wage law are also exempt from rest and meal period requirements. If you are a non-exempt, salaried employee, you are entitled to overtime pay if your employer increases your hours to more than 40 hours per week. In reality, wage and hour regulations provide specific criteria for the duties of each of the “white collar” exemptions and require that executive, administrative or professional employees also be paid on a salary basis. Employers should ensure that such changes are not so frequent or so closely tied to hours worked that an employee is effectively not paid on a salary basis. Employers are required to track non-exempt employees' work hours for several reasons, but one of the most important is that the employer must be able to calculate any overtime pay due the employee. Oregon Bureau of Labor & Industries protects employment rights, advances employment opportunities, and ensures access to housing and public accommodations free from discrimination. Among the more commonly invoked exemptions to these requirements are those provided for so-called “white collar” employees or “salaried exempt” employees. Workers may be required to work any amount of overtime according to OR overtime laws, except for nurses, who may only be required to work a 40 hour week. This amount is up from $455 per week ($23,660 annually) begining January 1, 2020. Check out BOLI's Web site at www.oregon.gov/boli/FAQS for a more detailed discussion of permissible deductions from salaried exempt employees. The update to the regulation will be used to determine whether white-collar, salaried employees are exempt from the federal Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay protections. Employers frequently conflate the concepts of "salary pay" and "exempt from overtime." Oregon overtime law now requires most employers in the manufacturing sector to pay employees working in mills, factories and other plants the greater of daily or weekly overtime if an employee works more than 10 hours in a single day and more than 40 hours total in the course of a single workweek. But over the last 40 years the number of employees qualifying for OT has steadily declined, so that only about 8 percent qualify for it today. Half a century ago, overtime (OT) pay was the norm, with more than 60 percent of salaried employees qualifying. Overtime wages are equal to 1 1/2 times the employee’s regular hourly rate (called overtime rate) for all … Other factors indicating management as a primary duty could include that the employee is paid a significantly higher salary than is paid to nonexempt staff, the employee makes frequent management decisions and the employee is free from direct supervision; Supervise two or more full-time employees (or the equivalent of two or more); Have hiring or firing authority or, if not full authority, recommendations are given particular weight; and. However, salaried employees may also be entitled to overtime pay if they have been misclassified for overtime exemption purposes under Oregon overtime law or federal overtime law. In Oregon, nonexempt employees who work more than 40 hours in a given workweek are entitled to an overtime rate of one-and-one-half times their regular rate of pay for every hour worked over 40, and employees of manufacturing establishments are also entitled to premium pay after working 10 hours a day. However, if you have to terminate a salaried employee, you must make sure to calculate his/her final pay correctly as it may be slightly more complicated than for hourly employees. Yes, provided the employee receives the required minimum amount on a salary basis, employers are free to provide additional compensation on another rate or basis. The Trump Administration has announced the final revised Overtime Rule for salaried employees, which will set the minimum yearly salary for exempt employees at $35,568 or $684 per week as of January 1, 2020. On May 20, 2020, the Department of Labor announced a final rule that allows employers to pay bonuses or other incentive based pay to salaried, nonexempt employees whose hours vary from week to week. It is the employer’s burden to prove exempt status of employees. Oregon overtime laws also make employers pay their employees overtime wages on a daily basis. § 541.602. Oregon's Overtime Minimum Wage Overtime pay, also called "time and a half pay", is one and a half times an employee's normal hourly wage. Oregon law requires a weekly salary equivalent to a monthly salary calculated by multiplying the applicable regional minimum wage by 2,080 hours and dividing that amount by 12 months. Oregon Overtime Law Summary However, if the employee is suspended for a full workweek, and no work is performed during that week, no salary is required to be paid. Provide other protections associated … Under federal law, exempt employees must be … Customarily and regularly exercise authority to make decisions of significance. Examples of unpaid overtime violations include if your employer: Requires you to work before clocking in, after clocking out, or during an unpaid lunch break. OAR 839-009-0240(14). As with executive and administrative personnel, exempt professionals must satisfy both a series of duties tests and a salary basis test to qualify for this exemption. Generally, no. Caution: Misclassification of salaried employees as exempt creates liability for unpaid overtime. *The Obama Administration’s rules increasing this salary amount to $47,476 did not go into effect on 12/1/16. Federal regulations allow for equivalent salaries which correspond to periods longer than one week, (e.g., twice the minimum salary for a biweekly pay period) but specify that the shortest period of payment that will meet this compensation requirement is one week. Reductions for suspensions for workplace infractions or workplace conduct (other than major safety violations) may also be made provided: (1) the reductions are made in full-day increments; and (2) the unpaid suspension is imposed pursuant to written policy applicable to all employees (not just exempt employees). Minimum wage, overtime and most working conditions requirements do not apply to these “white collar” workers when they qualify for the exemption.1 ORS 653.020(3); 29 U.S.C. Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. Some exemptions include white collar workers employed in executive, administrative, professional, and outside sales positions who are … Employees lose compensation for their work as a result of these employer mistakes. The second category of “white collar” exemptions is for a group of management employees who do not necessarily supervise other employees, but who perform responsible management duties within the organization: administrative personnel. Learn how, Property Services / Janitorial Labor Contractors, Certified Payroll Reports for Labor Contractors. Oregon Overtime Law Exemptions. Oregon labor law classifies all employees as non-exempt, its default setting for employees, and entitles them to overtime pay. Almost all Oregon employers are subject to the Fair Labor Standards Act (FLSA), and the minimum salary to qualify for exemption under that law is $684 per week or $35,568 annually (allowing up to 10% of the salary basis threshold to be met with nondiscretionary bonuses/incentives, including commissions, paid at least annually). See our factsheet on computer professionals for details. Docking the pay of exempt employees is only permissible in certain circumstances. FLSA – On December 1st, the federal annual salary threshold for employees exempt from overtime pay will double, increasing from $23,660 to 47,476. The salary threshold is the most significant change: the minimum threshold was previously $455 per week, but the new overtime law raises this to $684 (or $35,568 per year for a full-year worker). 29 C.F.R. Salaried exempt employees working in the private sector must meet one of the three following duties tests. Converting current salaried exempt employees to hourly non-exempt employees. Yes, deductions from leave banks for absences are permitted as long as the employee receives the appropriate payment in cash or salary. Yes, an employer may require the use of appropriate paid leave during a part-week shutdown, so long as the employee receives their full weekly salary. The law requires employers to pay nonexempt employees at least the federal minimum wage and requires the payment of overtime for an employee who works more than 40 hours in a week. Note: Although the employer is prohibited from docking an exempt employee for such absences, the employer may require the exempt employee to use accrued paid leave, except for jury service. Employee: Manisha Mittal Title: Doctor, Oregon State Hospital Agency: Oregon Health Authority Base pay: $248,989 Incentive or overtime pay: $32,453. The employee's job must fall into one of the categories that's eligible for an exemption. OAR 839-020-0004(30)(b). 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