Beginning July 1, 2016, Oregon's minimum wage will increase to $9.75 per hour, and it doesn't stop there. Oregon is the first state to implement a tiered minimum wage system that sets different hourly rates in different parts of the state. The minimum wage will continue to increase each year for the next six years, and will adjust for inflation thereafter. By 2022, the minimum wage will be $14.75 inside Portland's urban growth boundary, $12.50 in "nonurban" rural areas, and $13.50 in remaining areas (General Minimum Wage).
The law does not specify a method for employers to determine its location for purposes of paying minimum wage. Nor does the law specify how employers can determine the appropriate minimum wage for those employees who travel throughout the state on a regular basis. Instead, the law directs the Commissioner of the Bureau of Labor and Industries to adopt rules for determining an employer's location. We do not yet know when the new rules will be released.
General Minimum Wage (Remaining counties not included in other two categories)
Portland Urban Growth Boundary
July 1, 2016
July 1, 2017
July 1, 2018
July 1, 2019
July 1, 2020
July 1, 2021
July 1, 2022
July 1, 2023 and every July 1 thereafter
Adjusted for inflation; no less than $1 per hour less than general minimum wage
A rate adjusted annually for inflation
Adjusted for inflation; no less than $1.25 per hour more than general minimum wage
This client update is prepared for the general information of our clients and friends. It should not be regarded as legal advice. If you have any questions regarding this update, or for more information about this topic, please contact any of the attorneys in our Labor & Employment Practice Group, or the attorney with whom you normally consult.