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Manufacturing and Canneries

Manufacturing establishments

Employees of mills, factories, and manufacturing establishments may not work beyond daily and weekly limits on hours worked. They also earn overtime on a daily basis as well as a weekly basis, whichever is greater.

A “manufacturing establishment” means an establishment engaged in manufacturing. “Manufacturing” means the process of using machinery to transform materials, substances or components into new products.

Overtime in manufacturing

All hours worked over 10 in a day or 40 in a workweek by employees of a manufacturing establishments are overtime hours.

Manufacturing employers must compute overtime earned on both a daily and on weekly basis and pay the greater of the two. ORS 652.020(3). All overtime must be paid at time and one-half the employee’s regular rate.

Maximum work hours

Employees of a manufacturing establishments may work no more than 13 hours a day (a period of 24-hours). They must also receive at least 10 hours of rest after the end of any shift of at least 8 hours. (There are exceptions here for work required because of disruptions in operations caused by a power outage, major equipment breakdown, severe weather or similar emergency outside the employer’s control.)

Generally, employers may not require or permit an employee to work more than 55 hours in a workweek in a mill, factory or manufacturing establishment or a cannery, drier or packing plant. 

Employers may however permit an employee to work up to 60 hours in one workweek if the employee requests or consents in writing to work more than 55 hours in the workweek.

Undue hardships

Manufacturers of perishable products can apply for an undue hardship period exemption from the restrictions on the maximum workweek hours established by ORS 653.260 and ORS 653.265 if the employer, in the ordinary course of the employer's business, processes perishable products.

Employers claiming an undue hardship exemption must file a notice with the Bureau of Labor and Industries. When an undue hardship exists, employees may consent in writing to work up to 84 hours per workweek for four workweeks and up to 80 hours per workweek for any remaining workweeks in the undue hardship period.

Employers may be eligible for more than one undue hardship period in a calendar year, however, 21 workweeks in a calendar year is the maximum number of workweeks that an employer may invoke this provision.

Canneries, driers and packing plants

Employees “employed in" canneries, driers and packing plants NOT located on farms and primarily processing products produced on that farm are required to be paid for any hours worked over 10 in a day or 40 hours in a workweek at one and one-half times the employee's regular rate of pay. Like the overtime requirements for manufacturing employers, ORS 653.265 requires employers pay the greater amount of daily or weekly overtime earned by an employee.

Although there is no daily limit to the number of hours employees may work in canneries, driers and packing plants, employees may not work more than 55 hours in one workweek unless the employee requests or consents in writing to work more than 55 hours, in which case the employee may be permitted to work up to 60 hours in one workweek.

Like manufacturing employers, employers that employ employees in canneries, driers or packing plants may be eligible for an “undue hardship" exemption to these maximum hours restrictions if the employer, in the ordinary course of business, processes perishable products. In that case, the employer may permit an employee to work up to 84 hours per workweek for four workweeks; and up to 80 hours per workweek for the remainder of the undue hardship period. Perishable products are defined as any product that may spoil, deteriorate or undergo other material changes that render it unsuitable for the use for which it was produced and includes agricultural crops, meat and fish. Employers may be eligible for more than one undue hardship period in a calendar year, however, 21 workweeks in a calendar year is the maximum number of workweeks that an employer may invoke this provision.

In order to claim an undue hardship, the employer must provide notice to BOLI and obtain written consent from each employee that the employer intends to schedule to work in excess of 60 hours in the workweek on forms prescribed by BOLI. 

Note: The statute handles seafood processors differently than other canneries, driers or packing plants. Unless the employee is working in a facility that fits the definition of manufacturing establishment under ORS 652.020, non-exempt employees of a seafood processor are entitled to overtime after 10 hours in a day and after 40 in a workweek, but they are not limited by hourly maximums.

If you think your employer is violating these laws, you can make a complaint or contact us to get help.

The law

Manufacturing: ORS 652.020; OAR 839-001-0100 to -0160

Canneries: ORS 653.265

Seafood processors: ORS 653.263

Documents and forms

  • Written request or consent to work more than 55 hours/workweek: WH-261 (English / Spanish)
  • Notice of undue hardship period for manufacturing establishments: WH-262
  • Employee consent to work more than 60 hours in a workweek due to employer's undue hardship: WH-263 (English / Spanish)

Frequently asked questions

For workers

Can I choose if I work this extra overtime?

Yes! Your employer cannot ask you to work additional overtime hours unless you consent in writing. 

Can I withdraw my consent?

Yes, you can withdraw your consent at any time.

Can I be fired for not consenting to work overtime?

Your employer may not coerce you into working additional overtime hours. If you are fired or otherwise retaliated against because you refused to consent to work additional overtime that may be an unlawful employment practice. Additionally, the statute provides substantial civil penalties for employers that violate Oregon's manufacturing statute and rules.

Do I still get rest and meal breaks?

Yes. Click here for our factsheet on required rest and meal breaks. Your employer can give you additional breaks.

When does overtime pay kick in?

You should be paid overtime (at least 1.5 times your normal pay rate) for any hours worked over 40 hours in one workweek or 10 in a day — whichever is greater.

Are there exceptions to the rule on daily overtime?

Yes. Daily overtime would not apply to employees who are represented by a labor organization for purposes of collective bargaining, provided limits on the required hours of work and overtime payment have been agreed upon. In addition, specific types of employees are exempt — primarily employees engaged in making necessary repairs or in the case of emergency where life or property is in imminent danger; or employees whose principal duties are administrative in nature or who are not engaged in the direct processing of goods in the usual course of their duties.

What if my employer is not paying me overtime?

You can file a wage claim here.

I work at a seasonal cannery – do I get daily overtime?

That depends — canneries are potentially subject to more than one overtime rule.

Employees of a cannery, drier or packing plant that is located on a farm and processing only products produced on that farm are exempt from overtime. ORS 653.265.

Note that even when a cannery, drier or packing plant is located on a farm, employees must be paid daily overtime if the cannery does not primarily process products produced on such farm. Likewise, employees of such plants may also be subject to state and federal overtime requirements for hours worked in excess of 40 in a workweek.

Employees who work in canneries, driers or packing plants that are NOT located on a farm primarily processing products produced on that farm must be paid at one and one-half times their regular rate of pay for all hours worked over 10 hours per day or over 40 hours per week, whichever is greater.

Daily overtime and maximum hours limits on hours worked each day and workweek apply when operations of the establishment constitute “manufacturing," i.e., the process of using machinery to transform materials, substances or components into new products (such as turning fish into dogfood kibble or fertilizer)

For employers

Do I need to pay both daily and weekly overtime when manufacturing employees work in excess of the daily limit and more than 40 hours in a week?

No. When employees who have worked daily overtime (over 10 hours in a day) have also worked more than 40 hours in the workweek, calculate overtime wages earned for hours worked on both a daily basis and a weekly basis — and then pay the greater of the two.

Overtime example 1
DayHoursDaily Overtime
Weekly Overtime
Monday1220
Tuesday800
Wednesday500
Thursday500
Friday1111
Total4131

If the employee's regular rate of pay is $24 per hour, the employee will have earned:

  • 41 straight time hours at $24 = $984.00, plus EITHER
  • 3 hours of daily overtime at $12 (1/2 the employee’s regular rate) = $36.00, OR
  • 1 hour of weekly overtime at $12 (1/2 the employee’s regular rate) = $12.00

Because the employee would receive a greater amount of overtime if the daily overtime were paid ($36.00 as opposed to $12.00), the employee should receive $1,020.00 for the week ($984 plus $36).

Overtime example 2
DayHoursDaily OvertimeWeekly Overtime
Monday1330
Tuesday1330
Wednesday1000
Thursday1228
Friday11111
Total59919

If the employee's regular rate of pay is $20 per hour, the employee will have earned:

  • 59 straight time hours worked at $20 = $1,180.00, plus EITHER
  • 9 hours of daily overtime x $10.00 (1/2 the employee’s regular rate) = $90.00, OR
  • 19 hours of weekly overtime x $10.00 (1/2 the employee’s regular rate) = $190.00

Because in this scenario the employee would receive a greater amount of overtime if the weekly overtime were paid ($190.00 as opposed to $90.00), the employee is entitled to straight time wages plus the weekly overtime for a total of $1,370.00.

We have an employee who performs work on our manufacturing floor part of the week and also as a security guard two to three evenings a week. Since security duties are exempt, do we need to include that time in daily overtime computations?

It depends. The exempt status of an employee is determined by the type of work the individual performs, and for that reason, the exempt status of individual employees may vary from day to day. Employees performing exempt and nonexempt work are exempt from the provisions of ORS 652.020 only when they are engaged in exempt work more than 50 percent of their working time in any one day. Stated another way, if exempt duties do not constitute more than 50 percent of the work period, all hours worked that day would be included in daily overtime computations.

Our bookkeeper and some other administrative staff work onsite – are they subject to daily overtime or maximum hours restrictions?

No, under revisions to ORS 652.020, specific types of employees are exempt — primarily employees engaged in making necessary repairs or in the case of emergency where life or property is in imminent danger; or employees whose principal duties are administrative in nature or who are not engaged in the direct processing of goods in the usual course of their duties.

Daily overtime also would not apply to employees who are represented by a labor organization for purposes of collective bargaining, provided limits on the required hours of work and overtime payment have been agreed upon.

We operate a seasonal cannery – would my employees be subject to daily overtime?

That depends. Canneries are potentially subject to more than one overtime rule.

Employees “employed in” canneries, driers and packing plants which are NOT located on farms and primarily processing products produced on that farm are also required to be paid for any hours worked over 10 in a day or 40 hours in a workweek at one and one-half times the employee’s regular rate of pay. Like the overtime requirements for manufacturing employers, ORS 653.265 requires employers pay the greater amount of daily or weekly overtime earned by an employee.

Although there is no daily limit to the number of hours employees may work in canneries, driers and packing plants, employees may not work more than 55 hours in one workweek unless the employee requests or consents in writing, in which case the employee may be permitted to work up to 60 hours in one workweek.

Like manufacturing employers, employers that employ employees in canneries, driers or packing plants may be eligible for an “undue hardship” exemption to these maximum hours restrictions if the employer, in the ordinary course of business, processes perishable products. In that case, the employer may permit an employee to work up to 84 hours per workweek for four workweeks; and up to 80 hours per workweek for the remainder of the undue hardship period. Perishable products are defined as any product that may spoil, deteriorate or undergo other material changes that render it unsuitable for the use for which it was produced and includes agricultural crops, meat and fish. Employers may be eligible for more than one undue hardship period in a calendar year, however, 21 workweeks in a calendar year is the maximum number of workweeks that an employer may invoke this provision.

In order to claim an undue hardship, the employer must provide notice to BOLI and obtain written consent from each employee that the employer intends to schedule to work in excess of 60 hours in the workweek on forms prescribed by BOLI.

Note: The statute handles seafood processors differently than other canneries, driers or packing plants. Unless the employee is working in a facility that fits the definition of manufacturing establishment under ORS 652.020, non-exempt employees of a seafood processor are entitled to overtime after 10 hours in a day and after 40 in a workweek, but they are not limited by hourly maximums.

Agricultural employers should note that even when a cannery, drier or packing plant is located on a farm, employees must be paid daily overtime if the cannery does not primarily process products produced on such farm. Likewise, employees of such plants may also be subject to state and federal overtime requirements for hours worked in excess of 40 in a workweek.

Finally, all employers should note that the provisions of ORS 652.020 may also require the payment of daily overtime and impose a maximum limit on hours worked each day and workweek when operations of the establishment constitute “manufacturing,” i.e., the process of using machinery to transform materials, substances or components into new products (such as turning fish into dogfood kibble or fertilizer).




Disclaimer: This website is not intended as legal advice. Any responses to specific questions are based on the facts as we understand them and the law that was current when the responses were written. They are not intended to apply to any other situations. This communication is not an agency order. If you need legal advice, please consult an attorney.​


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