Agricultural Employer Overtime Tax Credit Full-Time Equivalency (FTE) Calculation

# (1)

(1) Definitions. For purposes of this rule:

(a) Eligible employer. A producer of crops, animals, or aquaculture that employs agricultural workers directly, or indirectly through contract with a labor contractor.

(b) Employee. A person employed for wages or salary.

(c) Farm labor contractor has the same meaning as OAR 839-015-0004.

# (2)

(2) For purposes of determining the applicable percentage of the credit allowed under Oregon Laws 2022, chapter 115, section 9, an eligible employer's number of full-time equivalent (FTE) employees is equal to the total hours worked by all employees of the eligible employer during the calendar year divided by 2,080. The total hours include all hours worked by agricultural employees subject to overtime compensation requirements, and:

(a) Agricultural employees exempt from overtime compensation requirements under Oregon Laws 2022, chapter 115, section 4a, such as managerial employees and immediate family members of the eligible employer;

(b) Employees that do not perform services in agriculture; and

(c) Employees that perform work partially or entirely outside of Oregon.

# (3)

(3) For purposes of this rule, hours worked by agricultural workers employed by a farm labor contractor on behalf of an eligible employer are considered hours worked by an employee of the eligible employer.