Stoel Rives: Multnomah County Circuit Court Rules Against Double Overtime for Oregon Manufacturing Employers | Practical Law

Stoel Rives: Multnomah County Circuit Court Rules Against Double Overtime for Oregon Manufacturing Employers | Practical Law

This Law Firm Publication by Stoel Rives LLP addresses the decision in Mazahua v. Portland Specialty Baking LLC, where the Multnomah County Circuit Court held that manufacturing employees are entitled to receive either daily overtime or weekly overtime, but not both. The Oregon Bureau of Labor and Industries (BOLI) had previously agreed with this interpretation of ORS 652.020 (daily overtime statute) and ORS 653.261 (weekly overtime statute). However, on January 1, 2017, it changed its interpretation, advising that employers must pay both daily and weekly overtime when manufacturing employees work over 40 hours in a week. The publication describes the Mazahua decision as good news for manufacturing employers because they now have a basis to support their lack of compliance with BOLI's new interpretation of overtime rules. However, Mazahua is limited because it is only binding on parties to the case and does not stop potential plaintiffs from pursuing double overtime in other cases. Since Mazahua did not invalidate BOLI's new advice or bar its enforcement, employers may still have to comply with BOLI's new interpretation.

Stoel Rives: Multnomah County Circuit Court Rules Against Double Overtime for Oregon Manufacturing Employers

by Stoel Rives LLP
Published on 14 Mar 2017Oregon
This Law Firm Publication by Stoel Rives LLP addresses the decision in Mazahua v. Portland Specialty Baking LLC, where the Multnomah County Circuit Court held that manufacturing employees are entitled to receive either daily overtime or weekly overtime, but not both. The Oregon Bureau of Labor and Industries (BOLI) had previously agreed with this interpretation of ORS 652.020 (daily overtime statute) and ORS 653.261 (weekly overtime statute). However, on January 1, 2017, it changed its interpretation, advising that employers must pay both daily and weekly overtime when manufacturing employees work over 40 hours in a week. The publication describes the Mazahua decision as good news for manufacturing employers because they now have a basis to support their lack of compliance with BOLI's new interpretation of overtime rules. However, Mazahua is limited because it is only binding on parties to the case and does not stop potential plaintiffs from pursuing double overtime in other cases. Since Mazahua did not invalidate BOLI's new advice or bar its enforcement, employers may still have to comply with BOLI's new interpretation.