LABOR LAW NEWS
Oregon Passes Historic Minimum Wage Law
Published on February 22, 2016
The Oregon Senate passed a bold minimum wage bill (SB1352) that establishes a tiered minimum wage system based on the geographical location of employers.
UPDATE March 2, 2016: This bill was signed into law by Oregon Governor on March 2, 2016, and takes effect July 1, 2016.
The Oregon Minimum Wage Act awaits Governor Kate Brown’s signature before being enacted into law, but the Governor tweeted that she looks forward to signing the bill.
Oregon Minimum Wage Increase Components
In a nutshell, the new Oregon Minimum Wage law:
- Creates staged minimum wage increases through 2023.
- Suspends annual inflation adjustment for minimum wage rate until 2023.
- Requires employers located within Portland’s urban growth boundary to pay rate higher than the base rate for minimum wage.
- Allows employers located within certain counties to pay rate lower than the base rate for minimum wage. Declares an emergency, effective on passage.
- The law includes three different rate increases beginning July 1, 2016, and reaching its highest set rate by 2022. The three different rate tiers differ by location. The highest rate will reach $14.75 in Portland in 2022.
Stages of Oregon Minimum Wage Increase
New rates begin July 1 of each year and end June 30 of the subsequent year.
|July 1-June 30||Statewide||Metro Service Districts||Nonurban County*|
|July 1, 2023+||Adjusted annually for inflation||$1.25 more than statewide rate||$1.00 more than statewide rate|
Oregon Minimum Wage Posting Requirements
Oregon currently has a posting required for minimum wage rates, and the existing requirement has not changed. GovDocs expects that under the new minimum wage law, the Oregon Minimum Wage notice will be updated to reflect the new minimum wage rates. The law does not indicate whether Oregon requires separate minimum wage postings for each of the three geographical locations. The new rate is effective July 1, 2016, and GovDocs will monitor for any new or updated Oregon minimum wage postings ahead of the effective date.
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