74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1759
 
                           A-Engrossed
 
                         Senate Bill 403
                 Ordered by the Senate March 23
           Including Senate Amendments dated March 23
 
Sponsored by COMMITTEE ON RULES
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
  Permits employee who serves food or beverages, receives tips
and reports tips to employer to waive meal period. Prohibits
employer from coercing employee into waiving meal period. Imposes
civil penalty for violation.
   { +  Sunsets January 2, 2012. + }
 
                        A BILL FOR AN ACT
Relating to meal periods for tipped employees; creating new
  provisions; and amending ORS 653.261.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 653.261 is amended to read:
  653.261. (1) The Commissioner of the Bureau of Labor and
Industries may   { - issue - }   { + adopt + } rules prescribing
such minimum conditions of employment, excluding minimum wages,
in any occupation as may be necessary for the preservation of the
health of employees.   { - Such - }   { + The + } rules may
include, but are not limited to, minimum meal periods and rest
periods, and maximum hours of work, but not less than eight hours
per day or 40 hours per week; however, after 40 hours of work in
one week overtime may be paid, but in no case at a rate higher
than one and one-half times the regular rate of pay of
 { - such - }   { + the + } employees when computed without
benefit of commissions, overrides, spiffs and similar benefits.
  (2) Nothing contained in ORS 653.010 to 653.261 shall be
construed to confer authority upon the commissioner to regulate
the hours of employment of employees engaged in production,
harvesting, packing, curing, canning, freezing or drying any
variety of agricultural crops, livestock, poultry or fish.
  (3) Rules   { - promulgated - }   { + adopted + } by the
commissioner pursuant to subsection (1) of this section do not
apply to individuals employed by this state or a political
subdivision or quasi-municipal corporation thereof if other
provisions of law or collective bargaining agreements prescribe
rules pertaining to conditions of employment referred to in
subsection (1) of this section, including meal periods, rest
periods, maximum hours of work and overtime.
  (4) Rules   { - promulgated - }   { + adopted + } by the
commissioner pursuant to subsection (1) of this section regarding
meal periods and rest periods do not apply to nurses who provide
acute care in hospital settings if provisions of collective
bargaining agreements entered into by the nurses prescribe rules
concerning meal periods and rest periods.
   { +  (5)(a) The commissioner shall adopt rules regarding meal
periods for employees who serve food or beverages, receive tips
and report the tips to the employer.
  (b) In rules adopted by the commissioner under paragraph (a) of
this subsection, the commissioner shall permit an employee to
waive a meal period. However, an employer may not coerce an
employee into waiving a meal period.
  (c) Notwithstanding ORS 653.256 (1), in addition to any other
penalty provided by law, the commissioner may assess a civil
penalty not to exceed $2,000 against an employer that the
commissioner finds has coerced an employee into waiving a meal
period in violation of this subsection. Each violation is a
separate and distinct offense. In the case of a continuing
violation, each day's continuance is a separate and distinct
violation.
  (d) Civil penalties authorized by this subsection shall be
imposed in the manner provided in ORS 183.745. All sums collected
as penalties under this subsection shall be applied and paid over
as provided in ORS 653.256 (3). + }
  SECTION 2. ORS 653.261, as amended by section 1 of this 2007
Act, is amended to read:
  653.261. (1) The Commissioner of the Bureau of Labor and
Industries may adopt rules prescribing such minimum conditions of
employment, excluding minimum wages, in any occupation as may be
necessary for the preservation of the health of employees. The
rules may include, but are not limited to, minimum meal periods
and rest periods, and maximum hours of work, but not less than
eight hours per day or 40 hours per week; however, after 40 hours
of work in one week overtime may be paid, but in no case at a
rate higher than one and one-half times the regular rate of pay
of the employees when computed without benefit of commissions,
overrides, spiffs and similar benefits.
  (2) Nothing contained in ORS 653.010 to 653.261 shall be
construed to confer authority upon the commissioner to regulate
the hours of employment of employees engaged in production,
harvesting, packing, curing, canning, freezing or drying any
variety of agricultural crops, livestock, poultry or fish.
  (3) Rules adopted by the commissioner pursuant to subsection
(1) of this section do not apply to individuals employed by this
state or a political subdivision or quasi-municipal corporation
thereof if other provisions of law or collective bargaining
agreements prescribe rules pertaining to conditions of employment
referred to in subsection (1) of this section, including meal
periods, rest periods, maximum hours of work and overtime.
  (4) Rules adopted by the commissioner pursuant to subsection
(1) of this section regarding meal periods and rest periods do
not apply to nurses who provide acute care in hospital settings
if provisions of collective bargaining agreements entered into by
the nurses prescribe rules concerning meal periods and rest
periods.
    { - (5)(a) The commissioner shall adopt rules regarding meal
periods for employees who serve food or beverages, receive tips
and report the tips to the employer. - }
    { - (b) In rules adopted by the commissioner under paragraph
(a) of this subsection, the commissioner shall permit an employee
to waive a meal period. However, an employer may not coerce an
employee into waiving a meal period. - }
    { - (c) Notwithstanding ORS 653.256 (1), in addition to any
other penalty provided by law, the commissioner may assess a
civil penalty not to exceed $2,000 against an employer that the
commissioner finds has coerced an employee into waiving a meal
period in violation of this subsection. Each violation is a
separate and distinct offense. In the case of a continuing
violation, each day's continuance is a separate and distinct
violation. - }
    { - (d) Civil penalties authorized by this subsection shall
be imposed in the manner provided in ORS 183.745. All sums
collected as penalties under this subsection shall be applied and
paid over as provided in ORS 653.256 (3). - }
  SECTION 3.  { + The amendments to ORS 653.261 by section 2 of
this 2007 Act become operative on January 2, 2012. + }
                         ----------