Oregon Governor Kate Brown recently enacted legislation that increases the state’s minimum wage rate by creating separate increases for employers based on geographic location. This change is relevant to your business if you have employees who live or work in Oregon. This increase is effective July 1, 2016, with ongoing increases to occur annually each July 1.  

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Oregon Minimum Wage Increase

Mar 29, 2016

Oregon Governor Kate Brown recently enacted legislation that increases the state’s minimum wage rate by creating separate increases for employers based on geographic location. The law, Senate Bill 1532, splits the current minimum wage rate into three categories:

  1. Employers located within the urban boundary of a metropolitan service district (currently, Portland metro)
  2. Employers located in nonurban areas (specific counties listed in the bill)
  3. “Standard” employers that do not fit into either category

As of July 1, 2016, the wage rates for these categories are:

  1. Standard: $9.75/hr.
  2. Urban (Portland Metro): $9.75/hr.
  3. Nonurban: $9.50/hr.

The law directs the Commissioner of the Bureau of Labor and Industries (BOLI) to adopt rules to determine an employer’s location for purposes of determining the applicable rate. Final rules have not been issued at the time of this writing. This increase is effective July 1, 2016, with ongoing increases to occur annually each July 1.