A first step toward clarifying Oregon’s overtime laws for manufacturers was made last month when Multnomah County Circuit Judge Kathleen Dailey dismissed the plaintiffs’ claims in the Mazahua Reyes, et al. v. Portland Specialty Baking, LLC case.
Under current law, Oregon nonexempt employees earn overtime for hours worked after 40 in a workweek. Employees working in mills, factories and other “manufacturing establishments,” however, are also entitled to daily overtime pay for workdays when they log more than 10 hours. Until recently, manufacturing employers calculated both overtime counts and paid the higher of the two, a uniform practice that was supported by the Bureau of Labor and Industries’ (BOLI) field operations manual.
The plaintiffs for Mazahua Reyes, however, filed a lawsuit arguing that manufacturing establishment employees are actually entitled to both daily and weekly overtime pay. And, in December 2016, while the case was pending, BOLI changed its interpretation of the law to echo the plaintiffs’ claims.
Judge Dailey’s ruling stated that BOLI’s pre-December guidance was the correct interpretation for calculating overtime for manufacturing employees, said Oregon Business Report, and though her decision will likely face appeal, employers are now required to pay only the greater of daily or weekly overtime.
In the meantime, legislators are considering Senate Bill 984, which would codify BOLI’s original interpretation of the law for manufacturing employers. NFIB/OR supports SB 984.
“This ruling is certainly welcome news, but those ambiguous laws are still on the books and open to interpretation,” NFIB/OR State Director Anthony Smith said. “That’s why it’s important for us to pass Senate Bill 984, which fixes this problem moving forward. The bill had its first hearing on March 29, and we’re optimistic about its chances to pass.”
