SALEM — Oregon Gov. Kate Brown has signed House Bill 4002, which phases out the state’s agricultural overtime pay exemption.

“I view this bill as an important step in the right direction, to correct a historic wrong,” Brown wrote in a letter Friday to Senate President Peter Courtney and Speaker of the House Dan Rayfield. “This policy will make a significant difference in the lives of farmworkers and their families.”

The new law establishes overtime pay requirements for agricultural workers in the state after 40 hours per week, with the requirements phased in over five years starting in 2023.

Under the law, farmworkers will be owed time-and-a-half overtime wages after 55 weekly hours of work next year, after 48 hours of work in 2025-2026 and then after 40 hours per week beginning in 2027.

Most farmers will be eligible for one of three tiers of tax credits, depending on whether they employ 25 or fewer workers, 25 to 50 workers, or more than 50 workers.

Tax credits will incrementally decline between 2023 and 2028. After that, the tax credits will be ended or re-evaluated by lawmakers based on economic studies required under HB 4002.

In her letter to the state House and Senate leaders, Brown acknowledged that the new law “has consequences for employers,” which is why she said it was crucial to include a tax-credit structure within the law to offset the impact on small, family-owned farms.

Brown wrote that the law may need to be changed and improved over time, so she said it’s important that conversation about the issue continue.

“I encourage legislators and stakeholders to continue their engagement on these issues, so that necessary and appropriate adjustments to the law can be made over time, during future legislative sessions,” said Brown.

An updated story is now available at www.capitalpress.com.