Alert – Oregon Minimum Wage

Oregon Minimum Wage is scheduled to increase on July 1, 2017.

Oregon enacted a multi-year minimum wage increase plan during the 2016 Legislative session.  This plan includes annual increases to minimum wage as well as setting geographic segments within Oregon paying different minimum wage rates.

On July 1, 2017, the rates will change again and this will be the first time all three geographic segments will have different rates.  The Portland Metro area will see an increase of $1.50 per hour and the Standard and Non-Urban areas will see an increase of $0.50 per hour.

Date                                      Standard                           Portland Metro                       Nonurban Counties
 July 1, 2017                          $10.25                                    $11.25                                             $10.00

For more information about the definition of each geographic segment and the annual planned increases please click here.

When minimum wage increases it is important to evaluate and consider the impact to jobs in close relationship to minimum wage.  In other words, the ripple effect. When you throw a pebble into a pond, it doesn’t make just one splash; it makes several ripples.

We suggest organizations consider the process of Feathering to smooth out the ripples. Feathering is defined as a process of making incremental changes of larger to smaller to a group of items.    For minimum wage, the ripples spread out over an estimated $3 per hour.  Employees within $3 per hour of the minimum wage often measure their value by how much over minimum wage they are paid.  They feel a distinct devaluing when employees at minimum wage get increases and they do not.    If you would like additional details on Feathering please contact us.

Don’t forget…

When minimum wage increases your organization will need to post updated Labor Law Posters.  Feel free to visit our web page and access the Poster Compliance Center and receive a discount.