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Oregon Law Guide

Oregon HB 4002: Agricultural Overtime for Farm Employers

In 2022, Oregon passed House Bill 4002, creating a phase-in schedule for agricultural overtime. Here is the source-backed readiness context every Oregon farm employer should keep visible.

Phase-in timeline

2023–2024

55 hours/week

Agricultural overtime threshold during the first phase of HB 4002.

2025–2026

48 hours/weekCurrent

Overtime (1.5x) required after 48 hours in a workweek. This is the current threshold.

2027+

40 hours/week

Overtime (1.5x) required after 40 hours in a workweek — matching non-agricultural workers.

What this means for your farm

If you employ agricultural workers in Oregon, you are now expected to track weekly hours and prepare payroll using the current overtime threshold. A readiness workflow should include:

  • Accurate weekly time records for every agricultural worker
  • A system to calculate when workers cross the overtime threshold each week
  • Payroll processes that apply the current overtime rate context
  • Record retention practices prepared for potential BOLI review
  • Awareness that the threshold drops to 40 hours in 2027

The AEOTC tax credit supports overtime cost planning

Oregon created the Agricultural Employer Overtime Tax Credit (ORS 315.133) alongside agricultural overtime. The credit can provide a source-defined percentage of qualifying overtime premium expenses, subject to DOR rules, the annual cap, and professional review.

How Farm TimeCard supports HB 4002 readiness

Automatic threshold tracking

Farm TimeCard keeps the current overtime threshold and upcoming 2027 change visible in payroll review.

GPS-verified time records

Clock-in/out events keep GPS context and tamper-evident history for BOLI review readiness.

Weekly overtime visibility

Dashboard shows who is approaching the threshold in real-time, so you can plan before overtime hits.

AEOTC eligibility tracking

Calculates overtime premium estimate context for CPA-reviewed AEOTC preparation.

Frequently asked questions about Oregon HB 4002

When did Oregon agricultural overtime start?

Oregon HB 4002 was signed in 2022. Agricultural overtime phase-in thresholds started at 55 weekly hours in 2023, moved to 48 weekly hours in 2025, and move to 40 weekly hours starting January 1, 2027.

What is the current Oregon farm overtime threshold?

For 2025 and 2026, Oregon agricultural payroll should be prepared to apply overtime at 1.5x the regular rate after 48 hours in a workweek. The threshold moves to 40 hours in 2027.

Does Oregon agricultural overtime apply to all farm workers?

HB 4002 applies to agricultural workers as defined by Oregon law. Some exclusions may apply for family members and certain categories. Confirm your specific obligations with a qualified employment attorney or the Oregon Bureau of Labor and Industries (BOLI).

What records should I keep for Oregon farm overtime reviews?

Maintain weekly time records, pay rates, overtime calculations, worker classifications, and source context for the rule version used. Clean records support BOLI review readiness and help advisors evaluate source-linked regulatory cost references.

Can I get a tax credit for Oregon agricultural overtime costs?

The Oregon Agricultural Employer Overtime Tax Credit may provide a source-defined percentage of qualifying overtime premium costs, subject to DOR rules, the annual cap, and CPA or tax-advisor review.

How should I track Oregon farm overtime?

Keep weekly time records for each agricultural worker showing total hours worked, overtime hours, and overtime pay calculations. GPS context and source-stamped rule versions support audit readiness.

Legal disclaimer

This guide is for informational purposes only and does not constitute legal or tax advice. Oregon labor law is complex and subject to change. Always confirm your specific obligations with a qualified employment attorney or the Oregon Bureau of Labor and Industries (BOLI). AEOTC eligibility should be confirmed with a licensed CPA or tax advisor.

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