While many states increased their minimum wage in January, Oregon waited until July 1.  Because the state of Oregon now has a tiered system based on the geographic location of where work takes place, employers within the state have different minimum wage requirements.  There are three separate wage rates.  The “standard” minimum wage is $10.25, while Portland employers within the urban growth boundary will need to pay employees at least $11.25 an hour, and non-urban employers can pay $10.00 an hour.

The “standard” minimum wage applies to the entire state with the exception of the area of Portland within the urban growth boundary and outlying rural counties (mainly in the southern and eastern parts of the state).

Portland area employers (in Clackamas, Multnomah and Washington counties) who are unsure if they must pay the higher minimum wage may find Metro’s look-up tool helpful.  Below is the link to the database that allows users to enter an address and determine what rate applies to their area.  http://www.oregonmetro.gov/library/urban-growth-boundary/lookup

Non-urban counties (where the new minimum wage is $10.00) include Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa and Wheeler.

The increase in the state minimum wage means employers must ensure that they are displaying a current minimum wage poster for both employees and applicants to see.  New posters may be downloaded from the Oregon Bureau of Labor http://www.oregon.gov/boli/TA/Pages/T_Tabooks.aspx#pomw

Or an all-in-one poster, which will be updated automatically, if required because of changes in the law, may be purchased from Poster Compliance Center (use the discount code HRANSWER for special pricing). https://www.postercompliance.com/

Employers can expect minimum wage increases every July 1 of $.50 to $.75 an hour, depending on their location.  Starting in 2023 increases will be tied to the Consumer Price Index.

Some requirements about Oregon minimum wage are not changing, including no “training” wage, minor employees must be paid at least the full minimum wage, and tip credits are not allowed.  If you have questions about the new minimum wage, HR Answers can help!