Oregon’s new minimum wage law takes effect on Friday, July 1, 2016, and employers have a few things to do in order to be prepared.
Each employer’s to-do list depends on the type of workers they have:
If your business employs workers who report to a fixed location and work there every day, be prepared to pay the new minimum wage for all hours worked beginning July 1, 2016. NOTE: This wage also applies if you have workers who make deliveries as part of their job, starting and ending their day at the same fixed location.
The wage you pay depends on the wage region where your business is located, so be sure you know which one you are in:
- Portland Urban Growth Boundary wages will rise to $9.75 per hour (enter your address here if you are not sure);
- Nonurban region minimum wages will rise to $9.50 per hour. This region includes all businesses in Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties;
- Urban/suburban region wages will rise to $9.75 per hour. This region includes all businesses in Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, and Yamhill.
If your business employs workers who spend more than 50% of their work hours in a region that is different than the company’s primary fixed location, follow the rules above, but base employees’ pay on the region where the employee spends more than 50% of their time.
If your business has employees who work in multiple regions in a single pay period, you must pay either:
- The minimum wage for each hour in each region where the work is performed. In this case, the employer must keep track of where the work was performed, provide this information on the employee’s pay stub, and maintain it in payroll records; or
- The highest wage rate required in any region where the employee worked during the pay period. If your business chooses this option, you do not need to track the location where the employee performed the work.
If your business employs piece rate or agricultural workers who historically have not been subject to state minimum wage laws, nothing changes. However, employers should carefully review these workers’ exempt status, as the new, higher wages mean higher penalties if that exemption is successfully challenged by a worker.
And for all employers:
Make sure your minimum wage posters are up to date. BOLI has new versions available online – click here to view.
This article comes from the Associated Oregon Industries.