Oregon Court Rejects BOLI’s New Guidance on Calculating Daily and Weekly Overtime for Mills, Factories, and Manufacturing Establishments

The Oregon Bureau of Labor and Industries (BOLI) recently announced a new interpretation of its overtime rules for mills, factories, and manufacturing establishments. Under the new guidance, employees in these establishments must be paid overtime for hours worked in excess of 10 in any day and any hours in excess of 40 hours per week.

On March 9, 2017, the Multnomah County Circuit Court issued an opinion in Mazahua v. Portland Specialty Baking, LLC, rejecting BOLI’s new interpretation. In its opinion, the court held that BOLI’s original interpretation, which required manufacturers to separately tally an employee’s daily and weekly overtime hours and then pay the greater of the two amounts, was the correct way to interpret the law.

Note that this decision is only binding on the parties in the lawsuit and that the plaintiffs may appeal the decision. However, employers should be aware that the Oregon Senate has introduced legislation (S.B. 984) that would restore the original interpretation.

Read OR S.B. 984