Fall 2012Oregon's minimum wage increases to $8.95 effective January 1, 2013. The federal minimum wage will remain the same at $7.25 per hour. When federal and state wage and hour laws conflict, employers are required to apply the standard that is most beneficial to employees. Therefore, employers must pay Oregon employees the higher state minimum wage for all hours worked in 2013.
Didn't Minimum Wage Just Go Up Last Year?
Yes. Oregon's minimum wage increased on January 1, 2012, from $8.50 to $8.80. It is increasing again in January 2013 because Oregon law requires an annual adjustment to minimum wage, rounded to the nearest five cents, when the U.S. Average Consumer Price Index for All Urban Consumers for All Items increases. Last period, the urban area consumer price index went up approximately 1.7 percent.
Transitioning to the New Minimum Wage
Employers with pay periods ending in December 2012 may pay employees the current minimum wage rate of $8.80 per hour for the December pay period even if pay day occurs in January 2013. This is because the new rate only applies to hours worked in 2013. For example, if the pay period ends on December 31, 2012, and pay day for that period is January 5, 2013, employers may pay employees $8.80 per hour for that December period because all hours worked in that period occurred in 2012. The following and all subsequent 2013 pay periods, however, must be paid at no less than $8.95 per hour.
As a reminder, Oregon employers must also update their required minimum wage posters when the new rate goes into effect. Download the new 2013 minimum wage poster.
The Bureau of Labor and Industries has also updated its Technical Assistance for Employers' website to answer frequently asked questions about Oregon's new minimum wage. For more information, please view the faqs.