On April 15, Oregon governor Kate Brown signed a bill (HR 4002) into law that will now require state growers to pay agricultural employees overtime.
The bill ends the overtime exemption for agricultural workers that had been in force. Agricultural workers will get overtime pay starting next year for over 55 hours worked. This will be reduced to 48 hours in 2025 and 2026, and to 40 hours per week thereafter.
To offset the costs, the state is offering tax credits to agricultural employers. For those with 25 or more full-time equivalent employees, the credit will equal “60 percent of excess wages paid in calendar year 2023 or 2024. (b) 45 percent of excess wages paid in calendar year 2025. (c) 30 percent of excess wages paid in calendar year 2026. (d) 15 percent of excess wages paid in calendar year 2027 or 2028,” says the bill.
For operations with fewer than 25 employees, the credit will equal “(a) 75 percent of excess wages paid in calendar year 2023 or 2024. (b) 60 percent of excess wages paid in calendar year 2025. (c) 45 percent of excess wages paid in calendar year 2026. (d) 30 percent of excess wages paid in calendar year 2027. (e) 15 percent of excess wages paid in calendar year 2028.”
Farm labor contractors are not covered by the provision, although employees provided by contractors are eligible if other criteria are met.
“I view this bill as an important step in the right direction, to correct a historic wrong,” said Brown. “It has the potential to improve health, safety and overall the quality of life for these workers.”
The measure had been opposed by the Oregon Farm Bureau, which called it “one of the most devastating bills for Oregon agriculture.”
California enacted similar legislation, which became effective in 2019.
Washington State has also ended overtime pay exemptions for agriculture, which started on January 1 of this year.
On April 15, Oregon governor Kate Brown signed a bill (HR 4002) into law that will now require state growers to pay agricultural employees overtime.
The bill ends the overtime exemption for agricultural workers that had been in force. Agricultural workers will get overtime pay starting next year for over 55 hours worked. This will be reduced to 48 hours in 2025 and 2026, and to 40 hours per week thereafter.
To offset the costs, the state is offering tax credits to agricultural employers. For those with 25 or more full-time equivalent employees, the credit will equal “60 percent of excess wages paid in calendar year 2023 or 2024. (b) 45 percent of excess wages paid in calendar year 2025. (c) 30 percent of excess wages paid in calendar year 2026. (d) 15 percent of excess wages paid in calendar year 2027 or 2028,” says the bill.
For operations with fewer than 25 employees, the credit will equal “(a) 75 percent of excess wages paid in calendar year 2023 or 2024. (b) 60 percent of excess wages paid in calendar year 2025. (c) 45 percent of excess wages paid in calendar year 2026. (d) 30 percent of excess wages paid in calendar year 2027. (e) 15 percent of excess wages paid in calendar year 2028.”
Farm labor contractors are not covered by the provision, although employees provided by contractors are eligible if other criteria are met.
“I view this bill as an important step in the right direction, to correct a historic wrong,” said Brown. “It has the potential to improve health, safety and overall the quality of life for these workers.”
The measure had been opposed by the Oregon Farm Bureau, which called it “one of the most devastating bills for Oregon agriculture.”
California enacted similar legislation, which became effective in 2019.
Washington State has also ended overtime pay exemptions for agriculture, which started on January 1 of this year.
Richard Smoley, contributing editor for Blue Book Services, Inc., has more than 40 years of experience in magazine writing and editing, and is the former managing editor of California Farmer magazine. A graduate of Harvard and Oxford universities, he has published 12 books.
