On March 2, 2016, Governor Kate Brown signed into law Senate Bill 1532 that establishes a 3- tiered system for determination of minimum wage based on geographical location of the employer as follows:
Tier-1
For employers of the following counties: Baker, Coos; Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, Wheeler, the minimum wage that must be paid to employees per hour will be:
From July 1, 2016, to June 30, 2017, $9.50.
From July 1, 2017, to June 30, 2018, $10.00
From July 1, 2018, to June 30, 2019, $10.50.
From July 1, 2019, to June 30, 2020, $11.00
From July 1, 2020, to June 30, 2021, $11.50.
From July 1, 2021, to June 30, 2022, $12.00
From July 1, 2022, to June 30, 2023, $12.50.
After June 30, 2023, Tier-1 employers must pay an employee no less than $1 per hour less than the minimum wage determined for Tier-2 employees.
Tier-2
For employers of the following counties: Benton, Clackamas (areas not inside of Portland urban growth boundary), Clatsop, Columbia, Deschutes, Hood river, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Multnomah (areas not inside of Portland urban growth boundary), Polk, Tillamook, Wasco, Washington (areas not inside of Portland urban growth boundary), Yamhill, the minimum wage that must be paid to employees per hour will be:
From July 1, 2016, to June 30, 2017, $9.75.
From July 1, 2017, to June 30, 2018, $10.25.
From July 1, 2018, to June 30, 2019, $10.75.
From July 1, 2019, to June 30, 2020, $11.25.
From July 1, 2020, to June 30, 2021, $12.00
From July 1, 2021, to June 30, 2022, $12.75.
From July 1, 2022, to June 30, 2023, $13.50.
After June 30, 2023, the minimum wage for Tier-2 will be adjusted annually for inflation based on the U.S. City Average Consumer Price Index for All Urban Consumers for All Items as prepared by the Bureau of Labor Statistics of the United States Department of Labor.
Tier-3
For employers of the following counties: Clackamas, Multnomah and Washington that are inside of the Portland urban growth boundary (generally the Portland metropolitan area), the minimum wage that must be paid to employees per hour will be:
From July 1, 2016, to June 30, 2017, $9.75.
From July 1, 2017, to June 30, 2018, $11.25.
From July 1, 2018, to June 30, 2019, $12.00
From July 1, 2019, to June 30, 2020, $12.50.
From July 1, 2020, to June 30, 2021, $13.25.
From July 1, 2021, to June 30, 2022, $14.00
From July 1, 2022, to June 30, 2023, $14.75.
After June 30, 2023 Tier-3 employers must pay an employee no less than $1.25 per hour more than the minimum wage determined for Tier-2 employees.
For a copy of enacted legislation, please click on the link provided below:
https://olis.leg.state.or.us/liz/2016R1/Downloads/MeasureDocument/SB1532
As always, please contact your HR Business Partner if you have any questions.