Governor Kate Brown is expected to sign House Bill 4002 mandating overtime for all agricultural workers in Oregon.  The Fair Labor Standards Act (FLSA) explicitly excludes agricultural workers from overtime pay.  However, states can enact additional labor laws, as Oregon has done with this bill.  According to the US Bureau of Labor and Statistics, the state of Oregon has more than 86,000 farmworkers.  The law primarily affects the Latinx community, which is estimated to make up over 90% of agricultural workers, based on a study published by the University of Oregon.

The bill will phase in the overtime threshold over the next five years, gradually reducing the hours agricultural employees need to work each week to earn overtime pay.

  • Beginning January 1, 2023: 55 hours per week
  • Beginning January 1, 2025: 48 hours per week
  • Beginning January 1, 2027: 40 hours per week

Hours above these thresholds will receive one and half times the employee’s base rate of pay.  The state will provide tax credits over the next six years to help offset the increased costs to farmers.

Oregon will become the third state to mandate overtime for all agricultural workers, joining Washington and California.   Minnesota, New York, Maryland, and Hawaii mandate overtime for agricultural workers but with limitations or exceptions.

Like Oregon, Washington is also phasing in overtime pay in the agricultural industry, with farmworkers currently earning overtime after 55 hours a week.  By 2024, the overtime threshold will be 40 hours per week.  In California, farmworkers must be paid overtime after 40 hours per week starting January 1, 2022, for farms with 26 or more employees.  Farms with 25 or fewer employees begin to pay overtime over 40 hours worked per in 2025.

How can we help?

Time Equipment Company offers FLSA compliant tracking systems that comply with state and federal exceptions for agricultural workers.  In addition, our systems provide leading indicators of overtime before it occurs.  These reports allow managers to control and reduce overtime, thus reducing their payroll expenses.  When labor is at a premium, tools like Attendance on Demand allow employers to maximize their efforts and control costs.

For more information about how to best track and manage overtime, contact Time Equipment Company at 800-997-8463 or sales@timeequipment.com.