Oregon's general overtime rule
Most nonexempt employees in Oregon must receive at least one and one-half times their regular rate for hours worked over 40 in a single workweek. The state rule is in ORS 653.261, with regular-rate calculation rules in OAR 839-020-0030. Oregon BOLI summarizes the rule in its official overtime guidance for employers.
A workweek is a fixed, recurring period of seven consecutive 24-hour periods. It does not have to match the calendar week. Hours generally cannot be averaged across two or more workweeks: a 50-hour week followed by a 30-hour week still contains 10 overtime hours in the first week.
Daily overtime is not Oregon's general rule. Working 10 hours on Monday does not by itself create overtime for most ordinary Oregon jobs. If the weekly total remains at or below 40, the general state rule does not add a premium. Public works and several special industries follow different rules.
Why overtime is an additional half-time premium
If the hourly rate has already been paid for every hour worked, including the overtime hours, the remaining overtime amount is an additional one-half of the regular rate for each hour over 40. That produces the same total as paying the first 40 hours at 1.0 times and the overtime hours at 1.5 times.
Example — 45 hours at $20 per hour
The regular rate can be higher than the stated hourly rate
Overtime is based on the employee's regular rate, not always just the number printed as the hourly wage. Certain nondiscretionary bonuses, shift differentials, and other compensation tied to work performed may need to be included. The regular rate is generally the includable compensation for the workweek divided by total hours worked.
Example — 50 hours at $20 plus a $100 production bonus
This calculator includes an optional field for additional pay, but it cannot decide whether a particular bonus or payment is legally included or excluded. If the answer is uncertain, check BOLI guidance or get payroll/legal advice before relying on the estimate.
Hours that usually do and do not count
Overtime is based on hours actually worked. Paid leave such as vacation, sick time, or a paid holiday generally does not count as hours worked unless an employer policy or agreement provides something more generous. Time can count when the employee is required to remain on duty, on the employer's premises, or at a prescribed workplace, and some travel, training, on-call, meal, or preparatory time may count depending on the facts.
An employer cannot avoid overtime by calling a worker salaried, a contractor, or a manager. Exemption and worker-status tests depend on duties, pay basis, control, and other facts. This page covers only a nonexempt hourly worker using one hourly rate.
Special Oregon rules this calculator does not apply
- Public works / prevailing wage: covered projects can require daily overtime, Saturday overtime, and holiday overtime. Use the Oregon PWR overtime calculator.
- Manufacturing establishments and mills: Oregon has special daily-overtime and maximum-hours provisions in ORS 652.020.
- Canneries, driers, and packing plants: ORS 653.265 includes special daily rules.
- Hospitals and certain care settings: authorized schedules and special statutory rules may change the calculation.
- Agricultural work, domestic service, commissioned sales, and exempt jobs: coverage and exemptions require their own analysis.
- Multiple hourly rates in one week: a weighted-average or other permitted regular-rate method may be required.