Efforts Continue to Reverse BOLI Overtime Rule

Published Thursday, March 9, 2017

Associated Oregon Industries (AOI) continues to lead the effort to better define the laws for awarding overtime pay.

Legislation proposed by AOI was introduced March 2 and referred to the Senate Workforce Committee. SB 984 establishes rules for overtime pay at manufacturers who fall under both daily and weekly overtime statutes. Employers would be directed to calculate applicable overtime pay for employees on a daily and weekly basis and pay the greater of the two amounts. Daily overtime is assessed when employees work more than 10 hours in a day; weekly overtime when they work more than 40 hours in a week.

Legislation became necessary when the Bureau of Labor and Industries (BOLI) decided last year to change the interpretation it had used for years to regulate overtime paid by manufacturers. Since January 1, manufacturing employers have been required to pay both daily and weekly overtime. Under that interpretation, an employee that works 8 hours for four days of the week and 12 on the fifth, for a total of 44, would receive regular pay for 40 hours, overtime pay for two hours and double overtime pay for two hours.

AOI is working with Legislative Counsel to amend SB 984 to include an emergency clause so that the new law would take effect immediately. AOI and the Oregon Business Association (OBA) encourage businesses affected by BOLI's overtime interpretation to contact members of the Committee on Business and Transportation. Committee members are:

Senator Lee Beyer (D-Springfield)

Senator Chuck Thomsen (R-Hood River)

Senator Fred Girod (R-Stayton)

Senator Rod Monroe (D-Portland)

Senator Chuck Riley (D-Hillsboro)

If you are interested in testifying when this bill is scheduled for a public hearing, contact AOI Vice President and Counsel Betsy Earls.