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February 17th, 2017 / by Mike Cooney

BOLI’s Quiet 180 on Overtime Law

A new Portland lawsuit filed in December triggered BOLI to reexamine its overtime guidelines in relation to daily and weekly overtime calculations for manufacturing employees.

Manufacturing is defined on the BOLI site as: “any place where machinery is used for ‘manufacturing purposes,’ which includes the process of making goods or any material produced by machinery; anything made from raw materials by machinery; and the production of articles for use from raw or prepared materials by giving such materials new forms, qualities, properties or combinations, by the use of machinery.”

There are two separate overtime statutes at play for manufacturing employers. One calls for overtime to be paid on any hours worked over 10 hours in a day. The other statute is the one that calls for overtime to be paid on any hours worked over 40 hours in a week. (Of course, there are exemptions and they can be found here.)

Traditionally BOLI advised manufacturing companies that they could calculate both overtime scenarios and then pay the greater of the two. The recent lawsuit has BOLI quietly changing that interpretation. Based on their review, BOLI leaders determined that the two statutes operate independently of each other. They now recommend that employers pay both daily and weekly overtime compensation, not just the greater of the two.

Interestingly, BOLI hasn’t made any public announcement to employers regarding the re-interpretation, but you can find more information on the BOLI website and here.