OAR 839-025-0050: Overtime Wages Computations

(1) As used in this rule "work day" or "day" means any time period of 24 consecutive hours as determined by the employer. The beginning of the work day may be changed only if the change is intended to be permanent, if the change is made in writing and if the change is not designed to evade the overtime requirements of ORS 279C.540. If an employer does not determine a 24 consecutive hour period, the default 24 consecutive hour period shall be from 12:00 midnight to 11:59 p.m. For purposes of overtime wages computation, each work day stands alone. (2) Contractors and subcontractors required by ORS 279C.540 to pay overtime wages shall pay such wages as follows: (a) Workers must be paid at least time and one-half the hourly rate of pay, excluding fringe benefits, for all hours worked: (A) On Saturdays; (B) On the following legal holidays: (i) Each Sunday; (ii) New Year's Day on January 1; (iii) Memorial Day on the last Monday in May; (iv) Independence Day on July 4; (v) Labor Day on the first Monday in September; (vi) Thanksgiving Day on the fourth Thursday in November; (vii) Christmas Day on December 25; (C) Over 40 hours in a week; and either (D) Over eight (8) hours in a day; or (E) Over 10 hours in a day provided: (i) The employer has established a work schedule of four consecutive days (Monday through Thursday or Tuesday through Friday) pursuant to OAR 839-025-0034; and (ii) The employer operates in accordance with this established work schedule. (b) Where a worker performs work in one or more classifications which provide for one or more hourly rates of pay the worker must be paid, in addition to the straight time hourly earnings for all hours worked, a sum determined by multiplying one half the weighted average of the hourly rates by the number of overtime hours worked pursuant to subsection (a) of this rule. (c) When determining the hourly wage rate for overtime purposes, the amount paid for fringe benefits shall be excluded from the computations. Though the amount paid for fringe benefits must be paid for all hours worked, such amount is not included when determining the overtime rate. For example, a worker who works a five-day work schedule and earns $15 per hour plus $3 per hour in fringe benefits and works ten hours in a day is entitled to $195 (($15/hr x 8 hours) + ($22.50/hr x 2 hours) + ($3/hr x 10 hours) = $195) for that day. (3) Examples of computing overtime wages: See Appendix 3. [ED. NOTE: Appendices referenced are available from the agency.] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.]