Overtime Pay Considerations
for Oregon and Washington Employers

The payment of overtime is required by both federal and state laws. The law requires most employers to pay overtime at the rate of 1.5 times the regular rate for all hours over 40 in the workweek. Special overtime rules apply to certain industries, entities and exempt workers.

A workweek does not necessarily need to be the same as a calendar week. It is simply a regularly recurring period of seven consecutive 24-hour periods. Pay periods are irrelevant to the overtime calculation. Pay periods and workweeks may differ.

Workers cannot waive their right to overtime pay. Businesses are required to pay time-and-one-half the regular rate for hours worked over 40 per week, even if the worker requests to work overtime hours without overtime pay.

Workers paid on a salary are required to be paid overtime, unless they fall into an exempt category. The same is true for certain jobs, industries and entities. Please check with your state's bureau of labor and industries to determine any exemptions. The links below also contain more information about overtime exemptions.

For more information about overtime pay regulations:

Washington State:
http://www.lni.wa.gov/workplacerights/
wages/overtime/whenapply/default.asp

Oregon State:
http://www.oregon.gov/boli/TA/pages/t_faq_taovrtim.aspx

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