Oregon BOLI Announces Minimum Wage Rules

Oregon July 1 2016 mapNew rules will help employers calculate wages when an employee works in multiple areas

PORTLAND, OR—The Bureau of Labor and Industries (BOLI) has published new minimum wage rules in preparation for the July 2016 minimum wage increase, the agency announced today.

The rules will help employers calculate wages in circumstances such as a worker performing duties at a location other than the employer’s permanent location or working in multiple areas in the course of a work period.

The rules can be found here.

The rules reflect comments from a diverse group of Oregonians and an advisory group that included the

NW Grocery Associations, Oregon Restaurant and Lodging Association, Oregon Farm Bureau, Oregon

Association of Nurseries, Association of Oregon Industries, Oregon Business Association, UFCW, PCUN,

AFL-CIO, Family Forward, SEIU, CAUSA and Oregon Center for Public Policy. In addition to holding a public hearing and convening multiple advisory meetings, the agency received more than 300 written comments about the proposed rules.

“I appreciate that both industry associations and minimum wage advocates stepped up to advise our agency’s rulemaking process,” said Labor Commissioner Avakian. “As Oregon raises its minimum wage for more than a hundred thousand workers next month, we hope that the rules will provide fairness to workers and employers alike.”

Passed by the 2016 Oregon Legislature, SB 1532 creates a series of annual minimum wage increases starting in July. After 2023, Oregon’s minimum wage rate will be indexed to inflation based on the

Consumer Price Index (CPI), a figure published by the United States Bureau of Labor Statistics to track prices for a fixed “market basket” of goods.

The law creates a tiered wage floor based on three zones around the state: 1) inside the urban growth boundary of the Portland metro region, including Multnomah, Washington and Clackamas counties 2) certain “nonurban” counties listed here and 3) the rest of the state.

BOLI’s Technical Assistance for Employers Program will hold a series of seminars around the state to help employers navigate new sick time requirements, minimum wage rules and other new workplace laws.

NOTE: The agency has also developed one poster for the state that will satisfy employers’ posting requirements. As of June 16, 2016, All In One Poster Company will have this newly released notice included in our Labor Law Posters for Oregon.

Here is the actual table, with some explanation and footnotes showing the rundown of the plan:

Effective Date of Rate Increase Base Rate Exception:  Rate within Portland’s Urban Growth Boundary2 Exception:  Rate within Nonurban Counties3
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

After June 30, 2023, the base rate will be adjusted for inflation, with the Portland rate set $1.25 above the base and the nonurban county rate set $1.00 below the base.

Employers should review their payroll practices and, as with any minimum wage increase, implement any required changes to comply with each of the upcoming rate adjustments starting later this year.

1 Some cities have recently raised the minimum wage higher than the projected rates established by Oregon’s new law.

2 An area encompassing the City of Portland and much of the greater tri-county area (Multnomah, Washington, and Clackamas counties) that is managed and periodically expanded by Metro, the Portland area regional government.

3 Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties.

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