Oregon Minimum Wage Increase

By Liani J. Reeves - Bullard Law

July 2, 2018

In March 2016, the Oregon Legislature enacted Senate Bill 1532 (codified in ORS 653.025) which provides for a geographically-tiered minimum wage increase over six years. The first increase went into effect July 1, 2016; annual scheduled minimum wage increases will continue through July 1, 2022.
 
Effective July 1, 2018, minimum wage rates will be increased as follows:
 
For employees performing work in the “Portland Urban Growth Boundary”: The minimum wage will increase $0.75 from $11.25 to $12.00 per hour. These are businesses that employ workers in Clackamas, Multnomah, and Washington counties.

For employees performing work in the “Standard” Region: The minimum wage will increase $0.50 from $10.25 to $10.75 per hour. These are businesses that employ workers in Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, and Yamhill counties.

For employees performing work in the “Nonurban” Region: The minimum wage will increase $0.50 from $10.00 to $10.50 per hour. These are businesses that employ workers in Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties.

Employers with individuals who provide services in multiple geographic regions in Oregon during any given pay period should follow these rules when evaluating which minimum wage rate applies:

1. If an employee performs more than 50% of his/her work during a pay period at a fixed business location, the minimum wage rate for the region for that business location applies to all hours worked during the pay period.

2. Delivery workers who start and end their work at the same fixed business location should be paid at least the minimum wage rate for the region encompassing that business location, notwithstanding deliveries made outside that region.

3. For those employees who do not perform more than 50% of their work hours during a pay period at a fixed business location, the employer must either (a) track (and maintain a record of) where the employee performs his/her work and pay at least the applicable wage rate for each region where the work was performed, or (b) pay the highest wage rate required for any region in which the employee worked for all hours worked during the pay period.

In addition, employers should be sure to post the new minimum wage rates (available on the BOLI website) at their worksites.  Please feel welcome to contact Bullard Law with any questions regarding minimum wages or other labor, employment and employee benefits issues.