Oregon Overtime Calculator (2026): Gross, Net Take-Home & Daily Overtime
In Oregon, overtime pay is 1.5× your regular hourly rate. For standard employees, overtime begins after 40 actual hours worked in a 7-day workweek under ORS 653.261. In manufacturing mills, factories, and canneries under ORS 652.020, overtime applies after 10 hours in a day and 40 hours in a week (using the greater-of rule). Under BOLI rates effective July 1, 2026 through June 30, 2027, the statutory overtime rate floors are $25.20/hr (Portland Metro), $23.33/hr (Standard), and $21.83/hr (Nonurban). Net take-home pay subtracts federal tax, 7.65% FICA, Oregon progressive withholding (4.75%–9.9%), 0.1% Statewide Transit Tax, and 0.6% Paid Leave Oregon.
Calculate your exact Oregon overtime earnings across Standard (40-hour), Manufacturing (10-hour daily • ORS 652.020), and Agricultural (48-hour) work modes. Model net take-home pay, Oregon Department of Revenue progressive withholding with federal-tax subtraction, 0.1% transit tax, 0.6% Paid Leave Oregon, and federal/Oregon rolling conformity tax savings.
Oregon Overtime & Net Take-Home Calculator
Federal Rules: Capped at $12,500 Single / $25,000 Joint; phase-out above $150,000 / $300,000 MAGI. FICA taxes (7.65%) remain 100% due. Employer weekly withholding continues unchanged, so your tax savings lands as a refund when filing Form 1040 — never on your weekly paycheck.
How Oregon Conformity Works: Oregon is a rolling-conformity state tied to federal taxable income (Legislature's Revenue Office Report #3-25). When you claim the federal overtime deduction under IRC § 225 on your federal return, that deduction flows through to lower your Oregon taxable income. Oregon state savings equal the qualified premium multiplied by your Oregon marginal rate (8.75% for most workers), claimed at tax filing on Form OR-40 — never on your weekly paycheck. Note: Oregon's federal-tax subtraction produces a small second-order subtraction interaction, so this figure is presented as a high-fidelity estimate.
Oregon Statutory Rates & Thresholds (Verified October 25, 2026)
Statutory parameters verified against Oregon Revised Statutes (ORS Chapters 652, 653, 316, 320), BOLI, Oregon Department of Revenue, and U.S. Department of Labor.
| Statutory Parameter | 2026 Statutory Rate / Threshold | Legal Citation & Governing Authority |
|---|---|---|
| Standard Overtime Multiplier | 1.5× regular hourly rate after 40 actual hours/week | ORS 653.261; OAR 839-020-0030 (FLSA 29 U.S.C. § 207) |
| Manufacturing Daily Overtime | 1.5× after 10 hours/day AND after 40 hours/week (greater-of rule) | ORS 652.020 (Mills, factories, manufacturing, canneries, driers, packing plants) |
| Manufacturing Work Limits | Max 13 hours in 24 hours; max 55 hours/week (60 with written consent) | ORS 652.020(2); mandatory 10-hour rest after 8+ hour shift |
| Agriculture Overtime (2026) | 1.5× after 48 hours/week in 2026 (drops permanently to 40h on Jan 1, 2027) | ORS 653.272 (Multi-year agriculture phase-in statute) |
| Portland Metro Minimum Wage | $16.80/hour (Overtime floor: $25.20/hour) | BOLI (Urban Growth Boundary of Clackamas, Multnomah, Washington) |
| Standard Minimum Wage | $15.55/hour (Overtime floor: $23.33/hour) | BOLI (15 Standard counties + outside UGB areas) |
| Nonurban Minimum Wage | $14.55/hour (Overtime floor: $21.83/hour) | BOLI (18 Nonurban Eastern and Southern Oregon counties) |
| Tip Credit / Subminimums | $0.00 (Tip credits strictly prohibited; minors receive full wage) | ORS 653.035; BOLI administrative guidance |
| Statewide Transit Tax (Employee) | 0.1% of gross wages (no wage cap) | ORS 320.550 (Withheld from all Oregon employees) |
| Paid Leave Oregon (Employee) | 0.6% of gross wages up to $168,600 wage base ($3,242.31/week) | ORS Chapter 657B; Employment Department |
| State Income Tax Brackets | Progressive 4.75%, 6.75%, 8.75%, and 9.90% | ORS 316.037; DOR Form 150-206-436 (Rev. 12-31-25) |
| State Standard Deduction | Single $2,910 • MFJ $5,820 • Head of Household $4,685 | Oregon Department of Revenue 2026 Withholding Schedules |
| Salaried Exemption Threshold | $684/week ($35,568/year) • Federal floor controls | 29 C.F.R. Part 541 (2024 DOL rule vacated Nov 15, 2024; $844 invalid) |
Oregon's 3-Tier Regional Minimum Wage & Overtime Floors
Unlike states with a single statewide wage, Oregon enforces a unique three-tier geographic minimum wage structure enacted under Senate Bill 1532. These rates are adjusted annually by the Commissioner of the Bureau of Labor and Industries (BOLI) based on changes in the Consumer Price Index for all Urban Consumers (CPI-U). The rates below are effective from July 1, 2026 through June 30, 2027:
| Region Tier | Base Minimum Wage | 1.5× Overtime Floor | Geographic / County Coverage |
|---|---|---|---|
| Portland Metro | $16.80 / hr | $25.20 / hr | Areas located inside the Portland metropolitan Urban Growth Boundary (UGB), spanning designated portions of Multnomah, Washington, and Clackamas counties. |
| Standard | $15.55 / hr | $23.33 / hr | 15 Counties: Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, and Yamhill; plus areas of Clackamas, Multnomah, and Washington counties lying outside the official UGB. |
| Nonurban | $14.55 / hr | $21.83 / hr | 18 Counties: Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler. |
The 50%-of-Pay-Period Rule (OAR 839-020-0013)
When an employee performs work in more than one wage tier during a single pay period, Oregon law establishes the 50% rule: if the worker spends more than 50% of their working hours in a higher-wage region (e.g., inside the Portland Metro UGB), the employer must pay the higher regional wage rate for all hours worked during that entire pay period. If the employee does not spend more than 50% of their working hours in any single higher-wage region, the employer must either pay the higher rate for all hours or maintain precise time records tracking the exact hours worked in each geographic zone.
Manufacturing Overtime Under ORS 652.020 (Mills, Factories & Plants)
Oregon is one of the few states with a special daily overtime statute tailored to manufacturing environments. Under ORS 652.020, employees working in mills, factories, manufacturing establishments, canneries, driers, and packing plants are protected by both daily and weekly overtime thresholds:
10 Hours per Day
Work in excess of 10 hours in any 24-hour period requires 1.5× regular pay. For instance, working a 12-hour shift automatically earns 2 hours of statutory daily overtime.
40 Hours per Week
Work in excess of 40 hours in a 7-day workweek also requires 1.5× regular pay, ensuring comprehensive protection across standard shifts.
The Greater-Of Rule
Overtime hours equal the greater of daily overtime hours or weekly overtime hours. Employers never add both together (no pyramiding).
10 Hours' Rest
Employers must provide a continuous rest period of at least 10 consecutive hours after any employee completes a shift of 8 or more hours.
Maximum Work Hour Caps & The BOLI "Both" Guidance Rollback
Strict Work Caps: Under ORS 652.020(2), manufacturing employees may not work more than 13 hours in any 24-hour period, nor more than 55 hours in a workweek. An employee may voluntarily agree in writing to work up to 60 hours in a workweek, but the employer cannot mandate or coerce hours above 55.
The Greater-Of Rule: In 2016, BOLI issued administrative guidance attempting to require employers to pay both daily and weekly overtime cumulatively. The Oregon Court of Appeals and Marion County Circuit Court struck down this interpretation, confirming that the statute mandates the greater of daily or weekly overtime hours—never both added together. Our calculator implements the verified judicial standard.
Exempt Roles & CBA Opt-Out: ORS 652.020 explicitly exempts watchmen, boiler operators, employees engaged solely in repairs or cleaning, transportation crews, plant supervisors, and forest-products loaders. Establishments operating under a valid collective bargaining agreement (CBA) that specifies hours and overtime terms may opt out of ORS 652.020.
Agriculture Overtime Phase-In (ORS 653.272)
Enacted under House Bill 4002, Oregon established statutory overtime rights for agricultural and farm workers under a structured phase-in schedule:
Throughout calendar year 2026, agricultural employers must pay time-and-a-half for all hours worked beyond 48 hours in a workweek. On January 1, 2027, the threshold permanently drops to 40 hours per workweek, completing the transition.
Oregon Final Paycheck Law (ORS 652.140 & ORS 652.150)
Oregon enforces some of the strictest final paycheck deadlines in the nation. Under ORS 652.140, an employer's deadline to disburse final wages depends strictly on how the employment ended:
End of First Business Day
When an employee is fired, laid off, or separated by mutual agreement, all earned wages (including all straight time and overtime) are due no later than the end of the first business day following discharge.
Due on Final Working Day
If an employee provides at least 48 hours notice of their intention to quit (excluding weekends and legal holidays), all final wages are due on the employee's last day of work.
5 Days or Next Payday
If an employee quits without providing 48 hours advance notice, wages are due within 5 business days (excluding weekends and holidays) or on the next regular payday, whichever occurs first.
Penalty Wages Under ORS 652.150
When an employer willfully fails to pay final wages by the statutory deadline, the employee's regular wages continue to accrue as a penalty: 8 hours of pay per day at the employee's regular rate for every calendar day the payment is late, up to a maximum of 30 calendar days.
12-Day Written Notice Safe Harbor: If an employer pays the overdue wages in full within 12 business days of receiving written notice of non-payment, the penalty is capped at 100% of the unpaid wages. However, if the employer fails to pay within 12 days, the full 30-day penalty applies, and BOLI may assess a civil penalty of up to $1,000.
Vacation & Sick Time Payouts: Under Oregon law (OAR 839-007-0045), earned accrued sick time is not required to be paid out upon separation. Earned vacation pay is policy-controlled: if the employer's employee handbook, written contract, or established practice promises vacation payout upon separation, it is legally enforceable as wages; otherwise, state law does not mandate vacation payout.
Oregon Rest Breaks & Meal Periods (Adults & Minors)
Under Oregon Administrative Rule OAR 839-020-0050, employers must provide mandatory rest breaks and meal periods during shifts:
10 Minutes per 4 Hours
- Duration: At least 10 continuous, paid minutes for every 4-hour work segment (or major fraction thereof).
- Major Fraction: Any segment of 2 hours and 1 minute or longer triggers an additional paid 10-minute break.
- Timing: Must be provided approximately in the middle of each 4-hour work segment.
- Relief of Duty: Employees must be relieved of all work duties. Employers cannot add break time to meals or let workers leave early in lieu of breaks.
30 Minutes per 6–8 Hours
- Duration: At least 30 continuous, uninterrupted, unpaid minutes for shifts lasting 6 or more hours.
- Timing Window: For shifts of 6 to 7 hours, the meal must occur between the 2nd and 5th hour. For shifts of 8 hours, between the 3rd and 6th hour.
- Second Meal Break: A second 30-minute meal period is legally mandatory if the work shift extends to 14 hours or longer.
- Paid Eating on Duty: Permitted only in rare circumstances where the nature of the work completely prevents relief from duty.
Oregon Minor Work & Break Protections
Oregon enforces enhanced protections for workers under 18 years of age (OAR 839-020-0200 et seq.):
- Minor Rest Breaks: Minors must receive 15-minute paid rest breaks (rather than 10 minutes) for every 4-hour segment worked.
- 14- and 15-Year-Olds: May work a maximum of 3 hours on school days, 8 hours on non-school days, 18 hours in school weeks, and 40 hours in non-school weeks. Hours must fall between 7:00 AM and 7:00 PM (extended to 9:00 PM from June 1 through Labor Day).
- 16- and 17-Year-Olds: May work a maximum of 44 hours per week, regardless of school session status.
- Annual BOLI Certificate: Employers must obtain an annual Employment Certificate from BOLI before employing any minor.
Oregon Overtime Tax Conformity & The Federal OBBBA Deduction
A frequent question for Oregon workers is: "Does Oregon exempt overtime pay from state taxes?"
How Federal Overtime Relief Lowers Oregon State Income Taxes
Under the federal Overtime Base-Pay and Bonus Act (OBBBA, IRC § 225), eligible employees can deduct the qualified 0.5× overtime premium slice from their federal taxable income for tax years 2025 through 2028 (capped at $12,500 for Single filers and $25,000 for Married Filing Jointly, with phase-outs above $150,000 / $300,000 MAGI).
Unlike static-conformity states (such as Minnesota) that freeze their tax codes to prior federal statutes, Oregon is a rolling-conformity state tied directly to federal taxable income under Oregon Revised Statutes Chapter 316 (as confirmed by the Oregon Legislative Revenue Office in Research Report #3-25). Consequently, any reduction in federal taxable income automatically reduces Oregon state taxable income.
Worked Example: 52 Weeks of Overtime
*The true Oregon state tax saving is calculated as Qualified Premium × Oregon Marginal Rate (minus a second-order interaction from Oregon's federal-tax subtraction). Savings are claimed as a tax refund when filing Form OR-40 at year-end; weekly paycheck withholding is not altered.
Filing an Unpaid Overtime Claim: BOLI Office & Statutes of Limitations
If your employer failed to pay statutory overtime, paid below regional minimum wage floors, or withheld final wages late, you have legal remedies through both administrative state enforcement and federal court:
State Bureau of Labor and Industries
- Statutory Overtime Claims: 2 Years from the date the overtime pay was due.
- Regular Straight-Time Wages: 6 Years from the date wages became due.
- Remedies: Full back overtime, statutory late-payment penalty wages under ORS 652.150, and interest.
FLSA Federal Enforcement
- Standard Overtime Violations: 2 Years under 29 U.S.C. § 255(a).
- Willful Overtime Violations: 3 Years if employer knowingly disregarded the law.
- Remedies: Back overtime plus 100% liquidated damages (double recovery) and attorney fees.
Bureau of Labor and Industries (BOLI) — Wage and Hour Division
What Competitor Calculators Get Wrong About Oregon Overtime
An audit of prominent payroll and overtime calculators reveals widespread legal inaccuracies regarding Oregon labor law:
- TimeAndHalf: Displays obsolete 2024 wage numbers and fabricates an Oregon 'double time' column (Oregon statutes contain zero statutory double-time provisions).
- minimum-wage.org: Displays a fictitious $10.75 'tipped employee wage' with an interactive tip credit input (Oregon law strictly bans tip credits under ORS 653.035).
- GoodCalculators & Jibble: Cite outdated 2025 wage floors and fail to reflect the July 1, 2026 BOLI rates ($16.80 Metro / $15.55 Standard / $14.55 Nonurban).
- Jibble: Claims salaried exempt employees require $844/week (the 2024 federal DOL rule was struck down in federal court on November 15, 2024; the federal floor remains $684/week).
- RemoteLaws: Denies that Oregon enforces daily overtime, completely ignoring ORS 652.020 manufacturing protections.
- USAPaycheckTool: Calculates state taxes on archaic $4,050 tax brackets and wrongly shows TriMet mass transit tax (0.8237%) as an employee paycheck deduction (TriMet is 100% employer-paid).
Oregon Overtime Laws & Take-Home Pay FAQs
Common questions on 2026 BOLI minimum wages, manufacturing daily overtime, and tax withholdings.
how does overtime work in oregon
In Oregon, overtime compensation is governed by Oregon Revised Statutes (ORS 653.261) and Oregon Administrative Rules (OAR 839-020-0030), alongside the federal Fair Labor Standards Act (FLSA). For standard non-exempt employees, overtime pay at 1.5× your regular hourly rate is mandated for all hours worked beyond 40 in a single designated 7-day workweek. Only actual hours worked count toward this threshold; paid sick leave, vacation time, holiday pay, and unworked paid hours do not count toward the 40-hour trigger. Employers cannot average hours across pay periods, though flexible work schedules within a single workweek are permitted.
what is overtime pay in oregon
Overtime pay in Oregon is statutory premium compensation equal to at least 150% (1.5×) of an employee's regular rate of pay. Based on Oregon's three-tier regional minimum wage system effective July 1, 2026 through June 30, 2027 (Bureau of Labor and Industries, BOLI), the statutory overtime floors are: $25.20/hr in the Portland Metro area ($16.80 base), $23.33/hr in Standard counties ($15.55 base), and $21.83/hr in Nonurban counties ($14.55 base). Oregon law strictly prohibits tip credits, training subminimums, and minor youth subminimum wages, meaning tipped workers and minors must be paid full statutory overtime on top of their full hourly rate.
oregon overtime pay rate
The Oregon overtime pay rate is 1.5× your regular hourly rate of pay. For example, a worker earning $18.00 per hour receives an overtime rate of $27.00 per hour; at $22.00 per hour, the overtime rate is $33.00 per hour; and at $25.00 per hour, the overtime rate is $37.50 per hour. If you receive non-discretionary bonuses, shift differentials, or hazard pay during the workweek, those amounts must be included in your regular rate before computing your 1.5× overtime multiplier under OAR 839-020-0030.
oregon overtime laws explained
Oregon overtime laws feature three distinct work-mode standards: (1) Standard Employment: 1.5× overtime pay after 40 actual hours worked in a 7-day workweek; (2) Manufacturing Establishments (ORS 652.020): Applies to mills, factories, manufacturing plants, canneries, driers, and packing plants, requiring 1.5× overtime after 10 hours in a day AND after 40 hours in a week, governed by a 'greater-of' calculation; and (3) Agricultural Employment (ORS 653.272): Overtime required after 48 hours worked in a week throughout 2026, transitioning to a permanent 40-hour threshold on January 1, 2027. Oregon law does not mandate double time or Sunday/holiday pay premiums, and compensatory time off ('comp time') is illegal in the private sector.
oregon overtime laws 2026
In 2026, Oregon enforces three regional minimum wage tiers established by BOLI: Portland Metro ($16.80/hr), Standard ($15.55/hr), and Nonurban ($14.55/hr). State income tax withholding is calculated using Oregon Department of Revenue Form 150-206-436 schedules with standard deductions of $2,910 for Single and $5,820 for Married Filing Jointly ($4,685 for Head of Household). Employee payroll deductions also include the 0.1% Statewide Transit Tax (ORS 320.550) and 0.6% Paid Leave Oregon employee contribution (up to the $168,600 wage base). In agriculture, overtime begins after 48 hours per week in 2026 before dropping to 40 hours in 2027.
does oregon have daily overtime
Oregon does NOT have general daily overtime for standard office, retail, or service employees. However, Oregon DOES mandate statutory daily overtime specifically for employees in manufacturing establishments under ORS 652.020. This law covers mills, factories, manufacturing establishments, canneries, driers, and packing plants, requiring 1.5× overtime pay for all hours worked in excess of 10 hours in any 24-hour period, in addition to weekly overtime after 40 hours.
oregon overtime laws 8 hours
Under Oregon law, working more than 8 hours in a single day does NOT trigger overtime pay for general employees. Standard Oregon overtime is strictly a weekly 40-hour threshold. An employer may schedule an employee for shifts of 9, 10, or 12 hours without paying daily overtime, provided the employee does not exceed 40 hours in the workweek or work in an industry covered by statutory daily overtime (such as manufacturing after 10 hours or public works contracts under ORS 279C.540 after 8 hours).
oregon overtime laws 10 hours
Under ORS 652.020, non-exempt employees in mills, factories, manufacturing establishments, canneries, driers, and packing plants are legally entitled to 1.5× overtime pay for all work performed beyond 10 hours in a single calendar day (or 24-hour period). For example, a factory employee working 12 hours a day for 3 days (36 total weekly hours) earns 30 regular hours and 6 daily overtime hours. Furthermore, Oregon law caps manufacturing work at 13 hours in any 24-hour period and requires a mandatory 10-hour rest period after any shift of 8 or more hours.
oregon overtime laws manufacturing
Under ORS 652.020, manufacturing overtime applies to mills, factories, manufacturing establishments, canneries, driers, and packing plants. Employees must receive 1.5× overtime for hours over 10 in a day and hours over 40 in a week. Under Oregon law, overtime hours equal the greater of daily overtime hours or weekly overtime hours—employers never pyramid or add daily and weekly overtime hours together. Maximum work hours are strictly capped at 13 hours in a 24-hour period and 55 hours in a workweek (expandable to 60 hours only with the employee's voluntary written consent). Collective bargaining agreements (CBAs) may opt out, and exempt roles include watchmen, boiler operators, repair persons, supervisors, and forest-products loaders.
oregon overtime laws agriculture
Under ORS 653.272, agricultural employees in Oregon are entitled to 1.5× overtime pay under a statutory multi-year phase-in. For calendar year 2026, agricultural overtime is required for all hours worked beyond 48 hours in a workweek. On January 1, 2027, the threshold drops permanently to 40 hours per workweek, bringing agricultural workers into full parity with standard FLSA overtime rules. Agricultural employers are subject to strict anti-retaliation provisions under BOLI enforcement.
oregon overtime for farm workers
Farm workers in Oregon earn overtime pay of 1.5× their regular hourly wage for all hours worked over 48 in a workweek throughout 2026. Beginning January 1, 2027, the overtime threshold drops to 40 hours per workweek. Agricultural employers cannot average hours over biweekly pay periods or substitute comp time. BOLI enforces full wage protections for agricultural employees regardless of immigration status.
oregon overtime laws for salary employees
Salaried employees in Oregon are entitled to 1.5× overtime pay unless they satisfy both the salary basis threshold and the statutory job duties test under 29 C.F.R. Part 541 for executive, administrative, or professional exemptions. In 2026, the federal salary threshold of $684 per week ($35,568 annually) controls. While Oregon has its own regional salary test tied to regional minimum wages (yielding $672/wk in Portland, $622/wk in Standard, and $582/wk in Nonurban), the higher federal $684/week threshold governs dual-covered employers. Figures of $844/week and $1,128/week are legally invalid because the 2024 federal rule was vacated in federal court on November 15, 2024. Highly Compensated Employees (HCE) require $107,432/year, and computer professionals require $27.63/hour if paid hourly.
oregon overtime tax rate
Overtime earnings in Oregon are taxed as ordinary earned income and do not carry a separate punitive tax rate. State withholding is determined by DOR Form 150-206-436 graduated brackets ranging from 4.75% to 9.9% (with an 8.75% marginal rate applying to single taxable wages between $11,400 and $125,000). Employees also contribute 0.1% for the Statewide Transit Tax and 0.6% for Paid Leave Oregon. Because Oregon is a rolling-conformity state tied to federal taxable income, eligible workers also qualify for the federal OBBBA overtime tax deduction (up to $12,500 Single / $25,000 MFJ) at annual tax filing, which flows through to reduce Oregon state taxable income as well.
oregon final paycheck law
Under ORS 652.140, final paycheck deadlines in Oregon depend on the reason for separation: (1) Discharged or Laid Off: All earned wages are due by the end of the first business day following discharge; (2) Quit with at least 48 hours notice (excluding weekends and holidays): All wages are due on the final day of work; (3) Quit without 48 hours notice: All wages are due within 5 business days (excluding weekends/holidays) or by the next regularly scheduled payday, whichever comes first. Under ORS 652.150, willful failure to pay triggers penalty wages of 8 hours of pay per day at the regular rate, up to 30 calendar days maximum (capped at 100% of unpaid wages if paid within 12 days of written notice), plus potential BOLI civil penalties up to $1,000.