Starting July 1st, Oregon will roll out the beginning of a complex six-year mandatory wage hike, which will be based on a tiered approach based on employer location. The different areas will have their wages increased tied to the density of their respective regions. The standard wage posted on the labor law poster will be $9.75, and this will include the Portland Metro area. Non-urban counties will only have the wages increased to $9.50 per hour.
The rate of Wage increases will be a three tiered structure based on three different density groups. High-Density population areas including Portland’s urban growth boundary will see an increase of $1.50 starting July 2017 up to $11.25 per hour, and will receive annual increases up until June 30th, 2022 when the minimum wage will go all the way up to $14.75 per hour. The medium density areas, will only increase to $10.25 an hour on July 1st, 2017 and will increase annually until it hits $13.50 per hour in 2022. The lowest density counties meanwhile, will see their 2017 rate increase to $10.00 per hour and increase annually it goes up to $12.50 in July of 2022.
Once 2023 comes around, the Commissioner of Labor will base the increases on cost of living expenses, which is similar to the system that uses the Consumer Price Index (CPI).
Employers should take time to go over their current payroll practices, and be sure to comply with the changes that will be adjusted annually.
Other changes to the labor law poster include the Oregon Family Leave Act (OFLA), the Oregon Indoor Clean Air Act (ICAA), a brand new Oregon Sick Time Law, and a new format that improves clarity to the Oregon OSHA compliances.