Oregon Employment Update: Oregon Minimum Wage – 10 Things to Know

 

From the Desk of John Kreutzer: As of July 1, 2016, Oregon no longer has a standard minimum wage across counties. Now there are three wage areas: Metro, Standard and Nonurban. Wages increased by 25 cents in rural counties, from $9.25 to $9.50, and 50 cents in major cities, from $9.25 to $9.75. Here is what employers need to know about this historic change:

1. Areas: In the Portland metro area, defined as the land within Metro’s Urban Growth Boundary, the minimum wage rises to $9.75-an-hour. For the Standard area, places such as Eugene-Springfield, Medford, Corvallis, the Northern Coast and Bend, the rate will also rise to $9.75-an-hour. In the rest of the state, some 18 counties defined as Nonurban area including all of Eastern Oregon, the minimum wage will increase to $9.50-an-hour.

 

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2. Wages: The minimum wage in Oregon will continue to rise on a set schedule.

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3. Exceptions: The minimum wage applies to almost all workers in the state, as there are currently no sub-minimum rates for trainees or minors. Workers not subject to the minimum wage laws include: some agricultural workers; in-home child care providers; in-home, but casual, domestic workers; exempt employees; outside salespersons; taxicab operators; on-site for safety employees. For the full list click the link at the bottom of the page, or call with questions about your employees’ eligibility.

4. Hours Included: Employers must receive minimum wage for ALL hours worked, this includes preparation time, opening and closing times, and all required meetings. Also, most Oregon employees are entitled to be paid for 10 minute rest breaks during each four-hour work period.

5. Record Keeping: Any time spent by an employee in the performance of duties must be recorded as work time. Regardless of how wages are paid (i.e. salary, piece-rate, commission) employers must keep accurate time records, failure to do so can result in liability in wage and hour litigation.

6. Tip Credit: Oregon does not allow...

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