Oregon Passes First-of-Its-Kind Minimum Wage Law With Rates Varying by Region
Author: Michael Cardman, XpertHR Legal Editor
UPDATE: Governor Kate Brown signed the bill into law on March 2, 2016.
February 22, 2016
Oregon's legislature has passed a new minimum wage bill, under which the minimum wage will vary depending on where an employer is located.
Many cities and counties around the nation have adopted their own local minimum wage rates, resulting in a patchwork of requirements for employers that operate in more than one location. But Oregon is the first state to establish regional variations at the state level.
Under the bill, which Gov. Kate Brown has said she will sign, the minimum wage will be higher for Portland and its immediate surroundings and lower for certain rural counties. The minimum wage will increase every year on July 1 for the next seven years. After that, it will be adjusted for inflation each year.
Base Minimum Wage |
Portland Area | Certain Rural Counties | |
|---|---|---|---|
Current |
$9.25 |
$9.25 |
$9.25 |
July 1, 2016 |
$9.75 |
$9.75 |
$9.50 |
July 1, 2017 |
$10.25 |
$11.25 |
$10.00 |
July 1, 2018 |
$10.75 |
$12.00 |
$10.50 |
July 1, 2019 |
$11.25 |
$12.50 |
$11.00 |
July 1, 2020 |
$12.00 |
$13.25 |
$11.50 |
July 1, 2021 |
$12.75 |
$14.00 |
$12.00 |
July 1, 2022 |
$13.50 |
$14.75 |
$12.50 |
July 1, 2023, and every July 1 thereafter |
Adjusted for inflation |
Adjusted for inflation; no less than $1.25 more than base minimum wage |
Adjusted for inflation; no less than $1.00 less than base minimum wage |
The bill directs the Bureau of Labor and Industries to adopt rules for determining an employer's location.
The rural counties were selected based on a demographic analysis that accounts for how much income families would need to make ends meet without public or private assistance.