Oregon HB 4002: Agricultural Overtime for Farm Employers
In 2022, Oregon passed House Bill 4002, extending overtime protections to agricultural workers for the first time. Here is what every Oregon farm employer needs to know — and how to stay protected.
Phase-in timeline
2023–2024
No overtime requiredTransition period. Agricultural employers were encouraged to prepare systems and records.
2025–2026
48 hours/weekCurrentOvertime (1.5x) required after 48 hours in a workweek. This is the current threshold.
2027+
40 hours/weekOvertime (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 required to track weekly hours and pay overtime (1.5x the regular rate) for any hours worked beyond the current threshold. This requires:
- Accurate weekly time records for every agricultural worker
- A system to calculate when workers cross the overtime threshold each week
- Payroll processes that correctly apply the 1.5x overtime rate
- Record retention for potential BOLI review (3+ years recommended)
- Awareness that the threshold drops to 40 hours in 2027
The AEOTC tax credit offsets your overtime costs
Oregon created the Agricultural Employer Overtime Tax Credit (ORS 315.133) to help farms absorb the new overtime costs. It refunds a percentage of your overtime premium expenses. In 2024, only $5.1M of the $55M annual cap was claimed — meaning most eligible farms are leaving money on the table.
How Farm TimeCard helps with HB 4002 compliance
Automatic threshold tracking
Farm TimeCard applies the correct overtime threshold (48h now, 40h in 2027) automatically. No manual calculation.
GPS-verified time records
Every clock-in/out is GPS-stamped and tamper-evident — ready for BOLI review at any time.
Weekly overtime visibility
Dashboard shows who is approaching the threshold in real-time, so you can plan before overtime hits.
AEOTC eligibility tracking
Automatically calculates your overtime premium costs for AEOTC tax credit claims.
Frequently asked questions about Oregon HB 4002
When did Oregon agricultural overtime start?
Oregon HB 4002 was signed in 2022. Agricultural overtime at the 48-hour weekly threshold took effect January 1, 2025. The threshold will decrease to 40 hours per week starting January 1, 2027.
What is the current Oregon farm overtime threshold?
As of 2025, Oregon agricultural employers must pay overtime (1.5x regular rate) for hours worked beyond 48 hours in a single workweek. This threshold decreases 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 is the penalty for not paying Oregon farm overtime?
Oregon BOLI can require back payment of owed wages, liquidated damages, and civil penalties. Maintaining accurate time records is a protective measure that demonstrates good faith compliance.
Can I get a tax credit for Oregon agricultural overtime costs?
Yes. The Agricultural Employer Overtime Tax Credit (AEOTC, ORS 315.133) refunds a percentage of overtime premium costs for qualifying agricultural employers. Only $5.1M of the $55M annual cap was claimed in 2024. Confirm eligibility with your CPA.
How should I track Oregon farm overtime?
You need weekly time records for each agricultural worker showing total hours worked, overtime hours, and overtime pay calculations. GPS-verified time tracking with automatic threshold calculation is the most reliable approach for 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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