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Find out how the Oregon minimum wage increase will affect your business.

Understanding the Oregon Minimum Wage Increase

Beginning on July 1, 2016, Oregon’s minimum wage will increase. The Oregon minimum wage increase will include three tiers of minimum wages.

Basics of the Oregon minimum wage increase

Oregon’s minimum wage is unique because, beginning on July 1, 2016, there is not a single minimum wage for the state. Instead, there will be three minimum wages.

The minimum wage will be divided up by region. There will be a standard minimum wage. There will also be separate minimum wages for the Portland Metro area and for nonurban areas. Oregon is the first state to set tiered minimum wages based on location.

The regional minimum wages will increase each year on July 1.

The Oregon minimum wage increase schedule goes up to 2022. Beginning on July 1, 2023, the minimum wages will be adjusted based on inflation.

Oregon regional minimum wage

The new Oregon minimum wage is divided into three tiers: a standard wage, a Portland Metro wage, and a nonurban counties wage.

Locations in Oregon are divided into the tiers based on population density and cost of living.

The standard minimum wage

The standard minimum wage applies to employers located in the following counties: Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, and Yamhill.

The nonurban counties minimum wage

The nonurban counties minimum wage applies to employers located in the following counties: Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler.

The Portland Metro minimum wage

The Portland Metro minimum wage applies to employers within the urban growth boundary. The Portland Metro has a tool where you can look up your address to see if you are located in an urban growth boundary. The urban growth boundary is located in parts of Clackamas, Multnomah, and Washington counties. The parts of those three counties that are not in the urban growth boundary should follow the standard minimum wage.

Oregon minimum wage increase schedule

Each regional minimum wage will increase on July 1 of every year through 2022. The minimum wages increase at different rates.

Beginning on July 1, 2023, the minimum wages are adjusted for inflation. There are rules for how the wages will be adjusted.

The standard minimum wage will be increased based on the U.S. City average Consumer Price Index for All Urban Consumers. The Portland Metro minimum wage must be $1.25 more than the standard minimum wage. The nonurban counties minimum wage must be $1.00 less than the standard minimum wage.

Standard
Minimum Wage
Portland Metro
Minimum Wage
Nonurban Counties
Minimum Wage
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 beyond Rate annually adjusted for inflation. Rate annually adjusted for inflation. Must be at least $1.25/hour more than the standard rate. Rate annually adjusted for inflation. Must be at least $1.00/hour less than the standard rate.

Tipped employees

Oregon does not allow a tip credit for paying tipped employees. You should pay tipped employees at least minimum wage.

Surviving the minimum wage increase

Even a gradual minimum wage increase can be difficult for small businesses. Your small business might be strapped for funds. But, there are ways small businesses can survive a minimum wage increase.

A few things you can do include increasing prices, creating a more efficient staff schedule, and finding a cheaper way to run payroll.

Do you want to find a cheaper way to run payroll? Try Patriot’s inexpensive payroll software now. We charge you based on the number of employees you have, not on the number of paychecks you process. And, we provide free direct deposit, so paying employees is a breeze.

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