By Jason W. Douthit
In 2016, the Oregon Legislature passed Senate Bill 1532, which requires annual minimum wage increases. The next scheduled minimum wage increases take effect July 1, 2020. It is anticipated that the minimum wage increases will take place as scheduled without any relief due to the COVID-19 crisis.
There are three different minimum wages in Oregon depending on the location of the work. A single rate applies to the Portland Metro Area. Outside of the Portland Metro Area, all counties are subject to the standard minimum wage unless the county is designated as a “nonurban” county.
The Portland Metro Area minimum wage is currently $12.50 per hour and will increase to $13.25 per hour. The standard minimum wage will increase from $11.25 to $12.00 per hour. The nonurban county minimum wage will increase from $11.00 to $11.50 per hour. Nonurban counties include the counties of Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler. Note that the portions of Clackamas, Multnomah and Washington counties that lie within the Portland Metro Area Urban Growth Boundary are subject to the Portland Metro Area minimum wage, but the portions lying outside of the Urban Growth Boundary are subject to the standard minimum wage rate.
The annual increases under the Senate Bill are already determined through July 1, 2022. The annual increase beginning on July 1, 2023 for standard counties will be based on the increase (if any) to the US City average Consumer Price Index for All Urban Consumers. The Portland Metro Area’s minimum wage will be $1.25 more than the standard minimum wage, while the nonurban county minimum wage will be $1.00 less. The following chart provides the annual increases going forward:
|Standard Minimum||Portland Metro Area||Nonurban County|
|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||Increase tied to the
US City Avg Consumer Price Index for All Urban Consumers
|$1.25 over the standard minimum wage||$1.00 less than the standard minimum wage|
If you have any questions regarding the changes to Oregon’s minimum wage, including which workers are subject to the minimum wage or are exempt from the requirement, please contact a Bullard Law attorney.