In reality, wage and hour regulations provide specific criteria for the duties of each of the “white collar” exemptions and require that executive, administrative or professional employees also be paid on a salary basis. Oregon law also permits the payment on a fee basis without jeopardizing the salary basis of otherwise exempt employees, provided the fees are paid each pay period and are not less than the equivalent of the applicable state minimum wage. Generally, no. § 541.602. This means, however, that an employee who has exhausted all paid leave must, nonetheless, receive their full weekly salary when a part-week shutdown occurs. The new statute, which Oregon Governor Kate Brown signed on August 8, 2017, requires most employers in the manufacturing sector to pay employees the greater of daily or weekly overtime if an employee works more than 10 hours in a single day and more than 40 hours total in the course of a single workweek. Yes, deductions from leave banks for absences are permitted as long as the employee receives the appropriate payment in cash or salary. There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. Employee: Manisha Mittal Title: Doctor, Oregon State Hospital Agency: Oregon Health Authority Base pay: $248,989 Incentive or overtime pay: $32,453. Oregon's Overtime Minimum Wage Overtime pay, also called "time and a half pay", is one and a half times an employee's normal hourly wage. In private sector employment, the exempt employee’s salary may not be reduced when an employee is absent for part of a day, unless the absence qualifies as leave taken under the federal Family and Medical Leave Act (FMLA). Employees receive overtime pay for hours worked in excess of 40 in a workweek at a rate of 1 and 1/2 their regular rates of pay. If you are a non-exempt, salaried employee, you are entitled to overtime pay if your employer increases your hours to more than 40 hours per week. Oregon wage and hour laws also generally require that overtime wages be paid by an employer/boss to non-exempt employees. (Special rules apply to government agencies.) As with executive and administrative personnel, exempt professionals must satisfy both a series of duties tests and a salary basis test to qualify for this exemption. However, if the employee is suspended for a full workweek, and no work is performed during that week, no salary is required to be paid. Employers are required to track non-exempt employees' work hours for several reasons, but one of the most important is that the employer must be able to calculate any overtime pay due the employee. The U.S. Department of Labor has issued new regulations for pay for exempt employees that will make more employees eligible for overtime. Therefore, employers should adopt policies clearly stating that the salary will not be reduced for absences of less than a full day, except those permitted by law, if the employee has no available accrued leave to access. Perform work as such as an executive's assistant who has management duties; a staff employee, such as an advisory specialist or department head; or as a special assignment employee such as a human resources manager. By classifying them as exempt, employers would then be allowed not to pay those employees overtime pay. Yes, provided the employee receives the required minimum amount on a salary basis, employers are free to provide additional compensation on another rate or basis. The law requires employers to pay nonexempt employees at least the federal minimum wage and requires the payment of overtime for an employee who works more than 40 hours in a week. In order to preserve that status under federal law, the employee must receive the full minimum required salary for each week. Oregon Overtime Law Exemptions. The Labor Department puts a greater emphasis on what kind of work you do. Yes, you may make reductions to the employee’s salary in full-day increments. Examples of unpaid overtime violations include if your employer: Requires you to work before clocking in, after clocking out, or during an unpaid lunch break. If the employee performs any work during the workweek when. Simply paying employees a salary does not relieve employers of the legal obligation to pay overtime if the employee is misclassified. Executives, administrators, professionals, sales workers and computer employees may be classified as exempt. OAR 839-020-0004(30). Generally, no. Other factors indicating management as a primary duty could include that the employee is paid a significantly higher salary than is paid to nonexempt staff, the employee makes frequent management decisions and the employee is free from direct supervision; Supervise two or more full-time employees (or the equivalent of two or more); Have hiring or firing authority or, if not full authority, recommendations are given particular weight; and. But the amount of money you make is only one part of the overtime equation. That said, administrative, executive or professional employees are entitled reasonable rest periods to express milk, unless to do so would cause an undue hardship. Wage and hour law generally requires employers to pay minimum wage and overtime to their employees and comply with basic working conditions requirements like rest and meal periods. Payment on a fee basis must be at a rate that would amount to at least the minimum required salary per week if the employee were to work 40 hours. Payment on a “salary basis” means that the agreed upon amount is generally not subject to reduction based on the quality or quantity of work performed. § 213(a)(1). OAR 839-020-0004(30)(b). The employee must be paid a regular salary of at least $455 per week. *The Obama Administration’s rules increasing this salary amount to $47,476 did not go into effect on 12/1/16. In deciding whether an employee is legally entitled to receive overtime pay, courts must determine whether an employee fits under specific "exempt" categories as spelled out in detail by Oregon and federal law. See, e.g. Exempt employees don’t get overtime pay and are paid a set amount regardless of the amount of hours they work. regular hourly rate of pay for any workweek in which overtime compensation is due, and an explanation of the basis of pay by indicating the monetary amount paid on a per hour, per day, per week, per piece, commission on sales, or other basis, and the amount and nature of each payment which is excluded from the “regular rate of pay”. However, if the absence only qualifies the employee for OFLA leave but not for FMLA leave (e.g., sick child leave, or leave to care for an employee’s grandparent, grandchild, or same-sex domestic partner with a serious health condition, or the employee is OFLA eligible but not FMLA eligible), the employer may not make the partial-day salary reduction without jeopardizing the exemption. If you make $18.00 per hour, your overtime rate is $27.00 per hour. The third category of salaried exempt employees is actually comprised of three separate sub-categories: Note that employers have several options regarding the classification of highly skilled computer professionals. Under the approved changes, the minimum pay a salaried worker must receive to be considered exempt would increase incrementally to 2.5 times the state minimum wage by 2028. The salary may be prorated (reduced) if an exempt employee is absent for one or more full days for personal reasons, other than sickness or disability. Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. You must pay nonexempt employees the federal or state minimum wage and overtime pay (time and a half) for any time worked over 40 hours in a week. The work must be distinguished from production or sales work and is limited to duties directly related to the running of a business and not merely carrying out day to day affairs; or. The employer may, however, offset any amounts received by an employee as jury or witness fees or military pay for a particular week against the salary due for that particular week without loss of the exemption; and. If you have salaried workers, you may be impacted by the change, which raised the overtime salary threshold to $684 a week, or $35,568 per year.. Here’s an in-depth look at the new overtime rule for 2020, and a few steps on … Half a century ago, overtime (OT) pay was the norm, with more than 60 percent of salaried employees qualifying. For teachers or tutors - Teaching, tutoring, instructing, or lecturing in the activity of imparting knowledge and who is employed and engaged in this activity as a teacher in the school system or educational establishment or institution by which the employee is employed; Whose work requires the consistent exercise of discretion and judgment in its performance; and. a basis of compensation where an employee is paid a set amount of money for a given period of time regardless of the number of hours worked during the salary period Overtime wages are equal to 1 1/2 times the employee’s regular hourly rate (called overtime rate) for all … The Fair Labor Standards Act (FLSA) governs wage and hour laws of nonexempt employees. This exemption from the FLSA is referred to as t… The performance of office or non-manual work directly related to management policies or general business operations of the employee’s employer or the employer’s customers. Total pay: $281,442 This tactic, known as “employee misclassification,” is not only unethical, it is illegal. Salaried exempt employees working in the private sector must meet one of the three following duties tests. Oregon Bureau of Labor & Industries protects employment rights, advances employment opportunities, and ensures access to housing and public accommodations free from discrimination. For more information about the Oregon overtime laws click here. Employees covered by the Fair Labor Standards Act (FLSA) must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay. § 541.602(a). An employer may reduce the regular workweek of an exempt employee, for example, from 40 hours to 32 hours, with a commensurate reduction in pay, provided the change applies to all workweeks going forward. ORS 653.010(9); OAR 839-020-0004(29). For minimum wage employees, the current minimum overtime rate according to Oregon overtime laws is $13.20 per hour, one and a half times the minimum wage of $8.80. Provide other protections associated … Normally, overtime pay earned in a particular workweek must be paid on the regular pay day for the pay period in which the wages were earned. Under wage and hour law, these exemptions are also referred to as the “Executive,” “Administrative” and “Professional” exemptions. Oregon generally defines overtime as all hours an employee works in excess of 40 hours in one week. Oregon generally defines overtime as all hours an employee works in excess of 40 hours in one week. By: Jim W. Vogele / Bio Last Updated: July 10, 2020. On January 1, 2020, the Department of Labor’s final rule that raises the salary threshold requirement for overtime exemption took effect.. § 541.710 and OAR 839-020-0330(2). So figuring out whether or not you are entitled to overtime is actually more complicated … Primary duty consists of the management of the enterprise in which the employee is employed (or of a customarily recognized department or subdivision of the enterprise). Note: Where state and federal law conflict, the law most beneficial to the employee prevails. If you are paid a salary, based on a 40-hour workweek, your regular rate is determined as follows: Multiply your monthly salary by 12 to get the annual salary; Divide your annual salary by 52 to get the weekly salary; See our factsheet on computer professionals for details. The performance of functions in the administration of a school system, or educational establishment or institution, or of a department or subdivision thereof, in work directly related to the academic instruction or training; Customarily and regularly exercise authority to make decisions of significance; and. Some exemptions include white collar workers employed in executive, administrative, professional, and outside sales positions who are … Oregon overtime laws also make employers pay their employees overtime wages on a … That said, the salary of an exempt “white collar” employee may be reduced under the following specific circumstances without jeopardizing the exemption. In Oregon, nonexempt employees who work more than 40 hours in a given workweek are entitled to an overtime rate of one-and-one-half times their regular rate of pay for every hour worked over 40, and employees of manufacturing establishments are also entitled to premium pay after working 10 hours a day. ORS 653.077. All salaried employees must be paid overtime unless they meet the test for exempt status as defined by federal and state laws. Reductions to an exempt employee’s salary may not be made as a disciplinary measure unless the penalty is imposed for violations of safety rules of major significance such as smoking in an explosive plant or oil refinery. The general rule requires that the employee receive the full salary for any week in which work is performed without regard to the number of hours or days worked. A salary is an agreed upon amount representing compensation for a period not less than a week, exclusive of board, lodging, or other facilities. The most recent attempt to change the standard salary was struck down by a district court. An employer must pay its employees at least the minimum wage for all hours worked, and time and one-half overtime pay based on an employee's regular rate of pay for all hours worked in excess of 40 in a workweek unless the employee is exempt for some reason. FLSA – On December 1st, the federal annual salary threshold for employees exempt from overtime pay will double, increasing from $23,660 to 47,476. They are exempt if they are employed in a bona fide executive, administrative, or professional (EAP) capacity, as defined in the Department of Labor’s regulations at 29 CFR part 541. Time off of less than full-week increments because work was not available; Absences of less than full weeks occasioned by the employer or by the operating requirements of the business; Absences caused by jury duty, attendance as a witness or temporary military leave. An employee will not be considered to be paid on a “salary basis” if deductions from the employee’s predetermined compensation are made for absences occasioned by the employer or by the operating requirements of the business. Note: If the FMLA partial day absence also qualifies for protected leave under the Oregon Family Leave Act (OFLA), the employer may make a partial day salary reduction. The employee must meet any specific job duty criteria mandated by the Act. A salaried employee must be paid overtime unless they meet the test for exempt status as defined by federal and state laws, or unless they are specifically exempted from overtime by the provisions of the California Labor Code or one of the Industrial Welfare Commission Wage Orders regulating wages, hours and working conditions. 29 CFR §541.602. OAR 839-009-0240(14). As with the executive category, administrative personnel must satisfy both the duties test and the salary basis test to qualify for exemption. That said, the regulations do not prohibit prospective changes to exempt employees’ salaries (provided they still receive the minimum required salary). § 541.600(b). The employee's job must fall into one of the categories that's eligible for an exemption. [1] The notable exceptions here are the accommodations for employees with a need to express milk in the workplace. Are Salaried Employees Entitled To Overtime Pay? The Trump Administration has announced the final revised Overtime Rule for salaried employees, which will set the minimum yearly salary for exempt employees at $35,568 or $684 per week as of January 1, 2020. Therefore, Oregon's overtime minimum wage is $18.00 per hour, one and a half times the regular Oregon minimum wage of $12.00 per hour. Oregon Overtime Law Summary Hourly employees in Oregon are almost always entitled to overtime for all hours worked in excess of 40 per workweek. Only covered, non-exempt employees must be paid overtime pay. For example, if a non-exempt employee earned $45,000.00 per year and worked just. Employers must pay employees overtime wages for this time in the amount of 1.5 times their regular hourly pay. To qualify as exempt, an employee must be paid a salary of at least $47,476 per year ($913 per week) and meet other legal requirements. Any … Exemption status is assessed by a combination of factors including the employee’s job responsibilities and earnings. Yes, as long as you have a paid leave plan that provides compensation in cases of illness or disability (which most employers have due to the Oregon sick time law). Your browser is out-of-date! Caution: Misclassification of salaried employees as exempt creates liability for unpaid overtime. Hourly employees in Oregon are almost always entitled to overtime for all hours worked in excess of 40 per workweek. Employees making less than $684 per week will likely be eligible for overtime pay, some of them for the first time. Finally, Oregon employers should be aware that ORS 10.090 prohibits employers from requiring employees to use accrued leave for absences occasioned by jury service. Minimum wage, overtime and most working conditions requirements do not apply to these “white collar” workers when they qualify for the exemption.1 ORS 653.020(3); 29 U.S.C. For minimum wage employees, the current minimum overtime rate according to Oregon overtime laws is $13.20 per hour, one and a half times the minimum wage of $8.80. Payment on a salary basis is only one requirement for an employee to be exempt from federal and Oregon overtime laws. No, not if you intend to preserve the employee’s exempt status. 29 C.F.R. Among the more commonly invoked exemptions to these requirements are those provided for so-called “white collar” employees or “salaried exempt” employees. It is the employer’s burden to prove exempt status of employees. 29 C.F.R. Employers should ensure that such changes are not so frequent or so closely tied to hours worked that an employee is effectively not paid on a salary basis. Note: Although the employer is prohibited from docking an exempt employee for such absences, the employer may require the exempt employee to use accrued paid leave, except for jury service. You will have to make a business decision as to whether it is worth maintaining the exemption for an employee who will only be working half time. No, if an employee is truly exempt as a “white collar” employee, there is no affirmative requirement to track hours worked though employers may elect to track hours worked for business purposes like job costing, benefit accruals or computing an employee’s entitlement to intermittent family leave under OFLA or FMLA. On May 20, 2020, the Department of Labor announced a final rule that allows employers to pay bonuses or other incentive based pay to salaried, nonexempt employees whose hours vary from week to week. On January 1, 2020, the Department of Labor’s final rule that raises the salary threshold requirement for overtime exemption took effect.. Such deductions from leave banks do not affect the exempt employee’s status. Oregon Minimum Wage Laws The Oregon minimum wage is currently set at $9.75 per hour. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime hours are worked on such days. The salary may also be reduced for absences of one or more full days due to sickness or disability provided the reduction is made according to the employer’s plan, policy or practice of providing paid sick or disability leave. Check out BOLI's Web site at www.oregon.gov/boli/FAQS for a more detailed discussion of permissible deductions from salaried exempt employees. Yes, an employer may require the use of appropriate paid leave during a part-week shutdown, so long as the employee receives their full weekly salary. Work schedules and overtime on prevailing wage projects, Salaried Exempt Employees - The “White Collar” Exemptions. 29 C.F.R. Docking the pay of exempt employees is only permissible in certain circumstances. Employers must provide proof to change their employees status to exempt. § 541.605. The employer may have to pay additional amounts if it is specified in the agreement that the salary is meant to compensate for up to 45 hours. 29 C.F.R. Oregon overtime law now requires most employers in the manufacturing sector to pay employees working in mills, factories and other plants the greater of daily or weekly overtime if an employee works more than 10 hours in a single day and more than 40 hours total in the course of a single workweek. Oregon labor law classifies all employees as non-exempt, its default setting for employees, and entitles them to overtime pay. Employees making less than $684 per week will likely be eligible for overtime pay, some of them for the first time. Pay formerly salaried employees on an hourly basis. Workers may be required to work any amount of overtime according to OR overtime laws, except for nurses, who may only be required to work a 40 hour week. It has known security flaws and may not display all features of this and other websites. The update to the regulation will be used to determine whether white-collar, salaried employees are exempt from the federal Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay protections. In addition, if an employer has a paid sick leave plan and the employee has exhausted all available paid leave under that plan, then the salary may be reduced for full-day absences due to sickness or disability. Federal law requires that most employees who work more than 40 hours a week receive overtime pay. To avoid paying this extra money, companies sometimes give their workers “inflated” job titles or just put them on a salary and claim they are exempt from receiving overtime under federal law. Yes, many salaried employees are entitled to overtime pay under the protections of the Fair Labor Standards Act (FLSA). federal law, however, when state and federal regulations conflict, employers subject to both laws must apply the standard that is most beneficial to the employee. Typically, employers assume that giving an employee a management title or paying that individual a salary automatically triggers an exemption. Nonexempt employees are eligible for overtime pay. Both the federal and state laws require that 1 1 / 2 times an employee's regular rate be paid for hours worked in excess of 40 during a workweek. For the learned professional - Work requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction and study, as distinguished from a general academic education and from an apprenticeship, and from training in the performance of routine mental, manual, or physical processes; or, For the creative professional – Work that is original and creative in character in a recognized field of artistic endeavor, the result of which depends primarily on the invention, imagination, or talent of the employee; or. Under federal law, exempt employees must be … The salary threshold is the most significant change: the minimum threshold was previously $455 per week, but the new overtime law raises this to $684 (or $35,568 per year for a full-year worker). Almost all Oregon employers are subject to the Fair Labor Standards Act (FLSA), and the minimum salary to qualify for exemption under that law is $684 per week or $35,568 annually (allowing up to 10% of the salary basis threshold to be met with nondiscretionary bonuses/incentives, including commissions, paid at least annually). Whose work is predominantly intellectual and varied in character and is of such character that the output produced or the result accomplished cannot be standardized in relation to a given period of time. Oregon law requires employers to pay employees overtime (1 1 / 2 times their regular rate of pay) if they work over 40 hours in a week. Automatically deducts time from your pay for lunch breaks, regardless of whether you take the break or not. Employers frequently conflate the concepts of "salary pay" and "exempt from overtime." It is the employer’s burden to prove exempt status of employees. This amount is up from $455 per week ($23,660 annually) begining January 1, 2020. The second category of “white collar” exemptions is for a group of management employees who do not necessarily supervise other employees, but who perform responsible management duties within the organization: administrative personnel. However, salaried employees may also be entitled to overtime pay if they have been misclassified for overtime exemption purposes under Oregon overtime law or federal overtime law. In addition to meeting at least one of the duties tests, exempt “white collar” employees typically must be paid a “salary” on a “salary basis.”. Misapplication of the exemption creates potential liability for overtime claims and penalties for working conditions violations. Employers must pay employees overtime wages for this time in the amount of 1.5 times their regular hourly pay. Reductions for suspensions for workplace infractions or workplace conduct (other than major safety violations) may also be made provided: (1) the reductions are made in full-day increments; and (2) the unpaid suspension is imposed pursuant to written policy applicable to all employees (not just exempt employees). Almost all Oregon employers are subject to the Fair Labor Standards Act (FLSA), and the minimum salary to qualify for exemption under that law is $684 per week or $35,568 annually (allowing up to 10% of the salary basis threshold to be met with nondiscretionary bonuses/incentives, including commissions, paid at least annually). Employees who make less than the threshold must be paid time-and-a-half for any hours worked beyond the 40-hour workweek. Mandates you to attend company meetings without compensating you. However, salaried employees may also be entitled to overtime pay if they have been misclassified for overtime exemption purposes under Oregon overtime law … In other words, payroll savings to the employer come from having reduced an exempt employee’s salary, not from making occasional or periodic deductions from that salary. Pay overtime (time and a half the employee’s regular rate of pay) for hours worked over 40 per week. Because the federal Fair Labor Standards Act (FLSA) applies to virtually all enterprises involved in interstate activities, most Oregon employers are covered by both state and federal law and must adhere to the stricter overtime standard. Which prevailing wage rate applies to this project? Employers may also require exempt employees to be present during specified hours. All salaried employees must be paid overtime unless they meet the test for exempt status as defined by federal and state laws. If the employee is ready, willing and able to work, deductions may not be made for time when work is not available. Overtime pay must be equal to one and one-half times your regular pay for each hour over 40, plus your salary. Even though federal minimum rage is $7.25, employers in Oregon must pay the state minimum wage. The rest and meal period requirements of the Oregon administrative rule arise out of Oregon’s minimum wage law (ORS 653.010 to 653.261), and employees who are exempt from the minimum wage law are also exempt from rest and meal period requirements. For non-exempt salaried employees, the employer must pay overtime if the employee works more than 40 hours in a week. Workers may be required to work any amount of overtime according to OR overtime laws, except for nurses, who may only be required to work a 40 hour week. Learn how, Property Services / Janitorial Labor Contractors, Certified Payroll Reports for Labor Contractors. Oregon’s “white collar” exemptions were patterned largely after Currently the minimum wage in North Carolina is $7.25 an hour. 29 C.F.R. Converting current salaried exempt employees to hourly non-exempt employees. If you have salaried workers, you may be impacted by the change, which raised the overtime salary threshold to $684 a week, or $35,568 per year.. Here’s an in-depth look at the new overtime rule for 2020, and a few steps on how to adapt. However, it is essential that the exempt employee’s salary not be “subject to deductions” for partial day absences (except as noted above for FMLA leave). Visit the US DOL website on this topic. However, once paid leave is exhausted, the salary may only be reduced for full-day absences, such that if the employee misses two and a half days, the employer may only reduce the salary for the two full-day absences and not the half day absence. Hours in one week you make is only one part of the legal obligation to pay overtime if employee... For time when work is not available hourly non-exempt employees with the executive category, administrative personnel must both. Private sector must meet any specific job duty criteria mandated by the Act must meet of! And earnings, 2020 employees lose compensation for their work as a result these! Deductions from leave banks do not affect the exempt employee ’ s burden prove... Is ready, willing and able to work, deductions from leave banks absences... Laws of nonexempt employees category, administrative personnel must satisfy both the duties test and the salary basis is permissible. 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Schedules and overtime on prevailing wage projects, salaried exempt employees is only permissible certain... In Oregon are almost always entitled to overtime for all hours worked excess. ( OT ) pay was the norm, with more than 40 in... Here are the accommodations for employees with a need to express milk in the amount of you.
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