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Tuesday
Aug242004

New Overtime Rules Are In Effect

Much has been reported in the press of new federal overtime rules.

These new rules, the most sweeping changes to overtime regulations in 55 years, have little impact on Oregon employers. Oregon's administrative rules are based on the old federal regulations. The Oregon rules have not changed. When conflicts exist between the Federal and Oregon regulations, you must follow the rules most favorable to your employees.

There is at least one change that does effect Oregon employers. The new federal law provides that white collar workers must make $23,660 a year or $455 a week in order to be exempt from overtime. The Oregon standard is $282 per week. Since the federal rule is higher than the Oregon regulation, the federal rule applies.

This means that you must pay overtime to managers that make less than $23,660 a year ($455 per week). You can pay these managers overtime or you can raise their salaries. In any event, however, you need to be aware of this change.

The bottom line is that except in those instances where the new federal overtime regulations are more favorable to workers, they do not apply to Oregon employers.

If you would like a comparison of the final U.S. Department of Labor "White Collar" exemption amendments and Oregon law, simply reply to this message and we will email a comparison to you.

As always, if you have questions about overtime exemptions or any other legal issue, please do not hesitate to contact me by telephone, email or dropping by our office.

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