Oregon Law Alert: Oregon’s minimum wages will increase as follows on July 1, 2018:
- Within Portland's Urban Growth Boundary: $12.00 per hour
- In mid-sized cities (the “standard” rate): $10.75 per hour
- In non-urban counties: $10.50 per hour
Non-urban counties include Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler.
Under state law, exempt employees in Oregon must be paid on a salary basis at a monthly rate of at least 2080 x minimum wage/12 (they may be paid more often than monthly). In the past, this number has been lower than the federal minimum of $455 per week, thus the federal minimum applied, and the state rate was irrelevant.
But, beginning July 1, the minimum salary for exempt employees within Portland’s Urban Growth Boundary will be greater than the federal minimum. Exempt employees working in that region will need to earn at least $2,080 per month or $480 per week. Employers should make pay increases as necessary or reclassify employees as non-exempt and pay them by the hour, including overtime for hours worked over 40 in a workweek.
Oregon’s predictive scheduling law will take effect on July 1, 2018. The law only applies to employers in retail, hospitality, and food service with 500 or more employees worldwide.
The IRS and the U.S. Department of Labor, along with state agencies, have specific criteria for determining who is an employee and who is an independent contractor. Watch our webinar, where we examine the classification of workers as independent contractors instead of as employees.