Effective January 1, 2015 the Oregon minimum wage increases 15 cents, to $9.25 per hour. That’s $2.00 per hour more than the federal minimum wage, but still less than the 2014 Washington state minimum wage of $9.32 per hour.
The OR minimum wage for tipped employees is also $9.25 per hour, since the state does not allow employers to take a tip credit.
Oregon is one of about a dozen states that increase the minimum wage annually, based on the cost of living. The Oregon minimum wage increase is based on the federal Consumer Price Index or CPI released by the U.S. Bureau of Labor Statistics.
Oregon labor and Industries Commissioner Brad Avakian estimates that this change will pump $25 million into the economy in consumer spending, since low-paid workers are unlikely to be in a position to save or invest their wage increase. Across the state, it’s estimated that more than 141,000 employees or 6% of the workforce earns the minimum wage. About 66% of those workers are women and the overwhelming majority are at least 20 years old.
Oregon labor law also requires that employers maintain accurate time and payroll records for at least two years. Employers must establish regular paydays, and a payroll period may not exceed 35 days.
As always, this change in the Oregon minimum wage requires that employers update their labor law posters, in particular the Oregon minimum wage poster.
