6/27/22: Annual Compliance Check: Planned Increase in Oregon’s Minimum Wage is Effective July 1
June 27, 2022
It is that time of year again when employers must ensure that their pay rates are consistent with Oregon’s annual automatic increases to the minimum wage. The new applicable minimum wage rate depends upon both the location of the employer and where employees perform their work.
New Minimum Wage Rates
These are the new minimum wage rates for each region effective July 1, 2022:
Portland metro area within the urban growth boundary: $14.75
Standard minimum wage: $13.50
Rural Oregon: $12.50
The “standard minimum wage” applies to Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Yamhill, and Wasco counties as well as parts of Clackamas, Multnomah, and Washington counties outside the urban growth boundary.
Oregon’s rural minimum wage rate applies in Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties.
If you are unsure if your company is within the urban growth boundary, please refer to this map maintained by Metro.
Compliance Reminders
Employers should consider taking some proactive steps to ensure compliance with Oregon’s new minimum wage rates. For example, for employers who outsource their payroll to third-party providers, it is worth confirming that your provider has input the appropriate minimum wage and overtime rates. Employers are also required to display an updated minimum wage poster in a conspicuous place beginning on July 1. The poster is available for download here.
Employers may also consider the downstream consequences of these new wage rates, as these increases tend to create wage compression that may need to be addressed. They may also affect employers’ pay equity plans and higher paid employees’ wages, depending on their compensation structure and the specific language in their job offers or employment agreements.
Click to access a PDF of this Electronic Alert.
For questions on wage and hour law, contact the Barran Liebman team at 503-228-0500.
