New Minimum-Wage Rates Now in Effect

Date: July 05, 2022

Last year of 2016 legislation creating scheduled increases. Next year, the rate links to CPI

July 1 was the last scheduled increase in Oregon’s three-tiered minimum-wage rate created by the Legislature in 2016. On July 1 of next year, future increases for the three tiers will be linked to the Consumer Price Index, which is tied to inflation.

At the beginning of this month, minimum-wage rates rose to:

  • $14.75 in the counties constituting the Portland Metro area
  • $13.50 in the Standard counties
  • $12.50 in the Non-Urban counties.

The Bureau of Labor & Industries has created a handy poster (see below) with all the counties under the three tiers and the new rates going forward.

The Bullard Law firm suggests employers “be sure to notify those employees who are entitled to a wage increase and the effective date, and send out and replace the required Oregon minimum wage poster: BOLI: Required Worksite Posters: For Employers: State of Oregon.

A $16 Minimum Wage Next Year?

“Oregon’s minimum wage had changed very little from 2009 through 2015, and legislators didn’t want it to stagnate again. So their 2016 bill mandated annual adjustments, beginning in 2023, tied to the rate of inflation,” reports The Oregonian.

“And here’s where things get interesting.

“Inflation was cool when the Legislature passed that bill, and each of the initial wage increases was greater, in percentage terms, than the rate of inflation. This year, though minimum wage workers are getting a 5.4% raise in the Portland area – much less than the rate of inflation.

“The latest federal numbers put annual inflation at 8.6%. If that rate keeps up, the minimum wage in the Portland area would hit $16 an hour in July 2023.”

 

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