Minimum Wage Legislation in Oregon

1. What is the current minimum wage in Oregon and how does it compare to federal minimum wage?

The current minimum wage in Oregon is $11.25 per hour for non-urban counties and $12.00 per hour for urban counties, which includes the Portland Metro Area.

This is higher than the federal minimum wage of $7.25 per hour, which has not been increased since 2009.

2. Has the minimum wage in Oregon always been higher than the federal minimum wage?
No, historically the federal minimum wage has been higher than the state minimum wage in Oregon. However, this changed in 2016 when Oregon passed legislation to increase its minimum wage over a series of annual steps, ultimately resulting in a higher minimum wage than the federal level.

3. How does Oregon’s minimum wage compare to other states?
Currently, there are 29 states that have a higher minimum wage than the federal level of $7.25 per hour.

Oregon’s current minimum wage is among the highest in the country, tied with Colorado and Washington for 5th place behind California ($14.00), Washington D.C. ($15), Massachusetts ($13.50), and Vermont ($11.75).

4. How often does Oregon’s minimum wage increase and by how much?
Since 2016, Oregon’s minimum hourly rate has increased at least once every year on July 1st.

The amount of the increase varies each year depending on whether it is an urban or non-urban county and on economic conditions such as inflation rates.

In general, starting from July 2020 until July 2023, urban county rates will go up by $0.50-$0.60 each year (except in July 2021 when they will only rise by $0.30) while non-urban counties will see increases ranging from $0-$0.90 per year.

After reaching its final stages of annual increases in July 2023 (when it reaches $13.50 for non-urban counties and $14.75 for urban), Oregon’s minimum wage will then be adjusted annually based on the annual change in the Consumer Price Index for urban areas in the Western Region.

5. Do all employees in Oregon receive the same minimum wage?
No, there are exceptions to Oregon’s minimum wage law that allow certain categories of workers to receive a lower minimum wage rate. These include trainees, learners, and workers under 18 years old.

Additionally, some occupations such as farmworkers and certain “seasonal amusement” or “holiday” employees may be exempt from the minimum wage requirements if they work less than a certain number of hours per year.

6. Are there any plans to further increase Oregon’s minimum wage in the future?
It is possible that Oregon’s minimum wage may continue to increase in the future through legislative action or ballot initiatives.

In recent years, there have been efforts to increase the federal minimum wage, which could also result in an increase for all states including Oregon. However, at this time, there is no concrete plan or timeline for any further changes to either state or federal minimum wages.

2. Has there been any recent legislation proposed to increase the minimum wage in Oregon?


Yes, there have been several recent proposals to increase the minimum wage in Oregon.

In 2016, Oregon Governor Kate Brown signed into law a bill that gradually increases the state’s minimum wage over a six-year period. This law, known as Senate Bill 1532, raises the minimum wage to $14.75 in the Portland Metro area, $13.50 in nonurban counties, and $12.50 in rural counties by 2022. After 2022, the minimum wage will be adjusted annually based on inflation.

In June 2019, another bill was introduced in the Oregon legislature that proposed raising the state’s minimum wage to $17 per hour by 2025. This bill, known as House Bill 3405, would also establish a separate tiered system of wages for different regions of the state and increase protections for workers who receive tips.

Additionally, there has been ongoing debate about potentially raising the federal minimum wage to $15 per hour. If this were to occur, it would also impact Oregon’s minimum wage as it is currently tied to federal laws.

3. Are there any exemptions or exceptions to the minimum wage law in Oregon?


Yes, there are some exemptions and exceptions to the minimum wage law in Oregon.

1. Tipped employees: The minimum wage for tipped employees is $12.00 per hour as of July 1, 2021. This includes occupations such as servers, bartenders, and delivery drivers who receive tips as part of their regular compensation.

2. Certain industries: There are specific industries that are exempt from the state minimum wage rate and instead must pay the federal minimum wage rate, which is currently set at $7.25 per hour. These industries include seasonal amusement or recreational establishments, certain agriculture workers, and certain nonprofit organizations.

3. Trainees and learners: Employers may pay a reduced minimum wage rate to employees who are under the age of 20 and in their first 90 consecutive calendar days of employment with a new employer. The training or learning period does not have to be consecutive days but cannot exceed 90 days.

4. Employees with disabilities: Employers can apply for a Special Employer Certificate to pay individuals with disabilities less than the minimum wage rate based on their productivity level.

5. Independent contractors: Individuals who are classified as independent contractors rather than employees do not fall under the minimum wage law in Oregon.

6. Individuals exempt from overtime pay: Some individuals may be exempt from receiving overtime pay, which applies when an employee works over 40 hours in a workweek. These exemptions include executive, administrative, professional, outside salesperson roles, among others.

It’s important for employers and employees to understand and comply with these exemptions to avoid any potential violations of the minimum wage law in Oregon.

4. How often does the minimum wage in Oregon get reviewed and potentially adjusted?


The minimum wage in Oregon is reviewed and potentially adjusted once a year.

5. Is there a difference in minimum wage for different industries or job types within Oregon?


Yes, there are different minimum wage rates for different industries and job types within Oregon. The general statewide minimum wage is currently $11.25 per hour, but certain cities and counties have higher minimum wages. Additionally, there are specific minimum wage rates for agricultural workers, employees at certain seasonal amusement or recreational establishments, and employees who receive gratuities as part of their compensation (such as tipped restaurant workers). Some cities in Oregon also have specific minimum wage rates for businesses that operate within their city limits.

6. Have there been any significant changes to the minimum wage laws in Oregon over the past decade?


Yes, there have been several significant changes to minimum wage laws in Oregon over the past decade. In 2016, the state enacted a series of annual increases to its minimum wage rates, which will continue until reaching $14.75 per hour in urban areas and $13.50 per hour in non-urban areas by 2022. Additionally, a statewide paid sick leave law was passed in 2015, requiring employers to provide paid time off for workers to use for their own or a family member’s illness or injury. In 2019, Oregon also became the first state to pass legislation implementing a graduated minimum wage system based on regional cost of living differences, with wages increasing at different rates depending on whether an area is classified as “Rural,” “Standard,” or “Urban.”

7. How does Oregon’s minimum wage compare to neighboring states?


As of July 1, 2021, Oregon’s minimum wage is $12.75 per hour. This is higher than the federal minimum wage of $7.25 per hour, but it also varies depending on location within the state.

Oregon’s minimum wage is generally higher than neighboring states. Here is a comparison of minimum wage rates in Oregon and its neighboring states:

– California: $14.00 per hour (as of January 1, 2021)
– Washington: $13.69 per hour (as of January 1, 2021)
– Idaho: $7.25 per hour (the same as the federal rate)
– Nevada: $9.75 – $10.50 per hour (depending on employer size and whether benefits are provided)

It’s important to note that some cities within these states may have their own higher minimum wage rates. Additionally, many cities and counties in Oregon have a higher minimum wage than the state rate, such as Portland’s current rate of at least $14.00 per hour (as of July 1, 2021).

8. Is it legal for employers in Oregon to pay less than minimum wage, such as through tip credits or youth wages?

No, it is not legal for employers in Oregon to pay less than the minimum wage. The minimum wage in Oregon applies to all employees, unless they are exempt under certain circumstances, such as being a seasonal agricultural worker. Employers are not allowed to use tip credits or youth wages to pay their employees below the minimum wage.

9. Are small businesses exempt from paying the state minimum wage in Oregon?

No, small businesses in Oregon are subject to the state minimum wage regardless of their size. The minimum wage applies to all employers who employ at least one worker for hire and who have an annual gross sales volume of $100,000 or more. Employers with a lower annual gross sales volume must still pay their employees at least the federal minimum wage of $7.25 per hour. Additionally, some cities in Oregon may have a higher local minimum wage that applies to all businesses within their jurisdiction.

10. What is considered a livable or fair wage according to cost of living in Oregon?


According to the MIT Living Wage Calculator, a livable or fair wage for a single adult in Oregon is $14.62 per hour (before taxes), assuming they work full-time (40 hours per week). This would cover the basic costs of living, including housing, food, transportation, healthcare, and other basic necessities. However, the actual fair wage may vary depending on specific location within Oregon and an individual’s personal expenses and circumstances.

11. Does Oregon have a plan for gradually increasing the minimum wage towards a certain target amount?

Yes, Oregon has a plan in place to gradually increase the minimum wage towards a target amount. In 2016, the state passed Senate Bill 1532 which includes a series of incremental increases to the minimum wage over six years. The first increase took place in July 2016, followed by additional increases each year until 2022. After that, the minimum wage will be adjusted annually based on inflation.

12. Are there any debates or controversies surrounding the current minimum wage laws in Oregon?

Yes, there are several debates and controversies surrounding the current minimum wage laws in Oregon. One main controversy is whether the increase in minimum wage will lead to job loss for low-wage workers or benefit them by increasing their income. Some argue that businesses may not be able to afford the higher wages and may have to lay off workers or cut employee hours, leading to job loss. Others argue that the increased wages will stimulate consumer spending and lead to job growth.

There are also debates about the timing and pace of the minimum wage increases. Some believe that it should be raised more gradually to allow businesses time to adjust, while others argue that a slower increase would not do enough to alleviate poverty and improve living standards for low-wage workers.

There is also debate over whether there should be different minimum wage rates for different regions within the state. Currently, the minimum wage is set statewide, but some argue that this does not take into account differences in cost of living between urban and rural areas.

Finally, there is ongoing discussion about what constitutes a livable wage and whether the current minimum wage is enough for individuals to cover their basic expenses without needing government assistance.

13. Do employees who receive tips have a separate, lower minimum wage requirement in Oregon?


Yes, employees who receive tips have a separate minimum wage requirement in Oregon. The current minimum wage for tipped employees in Oregon is $12.20 per hour, which is $1.50 less than the standard minimum wage of $13.70 per hour. Employers are required to pay their tipped employees at least the state’s minimum wage, but tips may be counted towards meeting this requirement. Employers must also ensure that their tipped employees earn at least the full minimum wage including tips, and if they do not, the employer must make up the difference.

14. Are non-profit organizations exempt from paying their employees at least state minimum wage in Oregon?


No, non-profit organizations in Oregon are not exempt from paying their employees at least state minimum wage. All employers, including non-profits, must comply with minimum wage laws set by the state.

15. What are the consequences for employers who violate the state’s minimum wage laws in Oregon?


The consequences for employers who violate the state’s minimum wage laws in Oregon can include fines, legal action, and penalties. The Oregon Bureau of Labor and Industries (BOLI) is responsible for enforcing the state’s minimum wage laws and can pursue legal action against employers who are found to be in violation.

Violations of Oregon’s minimum wage laws may also result in a civil penalty of up to $1,000 per violation. Additionally, if an employee files a complaint against their employer for violating minimum wage laws, the employer may be required to pay back any wages that were unlawfully withheld.

In some cases, repeated or egregious violations of minimum wage laws may also result in criminal charges being filed against the employer. Employers who fail to comply with Oregon’s minimum wage laws may also face damage to their reputation and loss of business.

It is important for employers in Oregon to ensure that they are following all state and federal minimum wage laws to avoid potential consequences.

16. How does overtime pay affect employees who are paid at or near the state’s minimum wage level in Oregon?

If an employee is paid at or near the state’s minimum wage level and they work more than 40 hours in a workweek, they are entitled to overtime pay at a rate of 1.5 times their regular hourly wage for each hour worked over 40.

In Oregon, the current minimum wage is $12.00 per hour. This means that if an employee who is paid at the minimum wage works 45 hours in a workweek, they would receive $12.00 for the first 40 hours and $18.00 for the additional 5 hours of overtime, for a total of $570.

Employers should be aware that if an employee’s regular rate of pay fluctuates due to bonuses, commissions or piecework earnings, the overtime rate must still be calculated based on 1.5 times their average hourly rate over the workweek.

Additionally, if an employee is exempt from minimum wage requirements (such as certain agricultural employees), they are not entitled to overtime pay even if they work more than 40 hours per week. However, other protections may still apply to these exempt employees under state and federal laws.

Overall, it is important for employers to carefully track employees’ hours and ensure that they are being properly compensated for any overtime work. Failure to do so could result in legal action from employees and potential penalties from the state labor agency.

17. Are there any specific industries or job types that are exempt from following state-level minimum wage laws in Oregon?


No, all industries and job types in Oregon are subject to the state-level minimum wage laws. However, there may be exceptions for certain workers such as tipped employees or minors, depending on the specific wage rates set by the Oregon Bureau of Labor and Industries.

18. If an employee works remotely for a company based outside of Oregon, do they still receive at least state-mandated minimum wage?


Yes, the employee must still receive at least the state-mandated minimum wage for the location where they are performing work. This applies even if the company is based outside of Oregon. Employers must follow the minimum wage laws of the state where work is being performed.

19. Are there any age restrictions for employees earning the minimum wage in Oregon?

Yes, employees must be at least 18 years old to earn the minimum wage in Oregon. However, there are exceptions for certain seasonal workers and students under the age of 18.

20. In what ways does Oregon enforce compliance with their minimum wage laws?


Oregon enforces compliance with their minimum wage laws through several measures:

1. Regular monitoring and investigation: The Oregon Bureau of Labor and Industries (BOLI) monitors compliance with the state’s minimum wage laws by conducting periodic investigations and audits of businesses to ensure that they are paying their employees the required minimum wage.

2. Complaints and claims process: BOLI also has a complaint process in place for employees to report any potential violations of the minimum wage law. They investigate these complaints and can take legal action if necessary.

3. Civil penalties: Employers who fail to pay employees the minimum wage or violate other provisions of the law may be subject to civil penalties, which can include back wages owed, interest, and additional damages.

4. Education and outreach: BOLI also conducts education and outreach programs to inform both employers and employees about their rights and responsibilities under Oregon’s minimum wage laws.

5. Collaboration with other agencies: BOLI works closely with other state agencies, such as the Oregon Employment Department, to identify potential violations of minimum wage laws and coordinate enforcement efforts.

6. Increased fines for repeat offenders: The state has implemented increased fines for repeat offenders who continue to violate the minimum wage laws despite previous warnings or sanctions.

7. Publicity campaigns: At times, Oregon may launch publicity campaigns to raise awareness about the importance of paying workers a fair minimum wage and the consequences of violating these laws.

8. Legal actions: In some cases, BOLI may take legal action against employers who refuse to comply with the state’s minimum wage laws, including filing lawsuits on behalf of affected employees.