As we previously advised,1 on March 2, 2016, Oregon enacted the first geographically-tiered minimum wage hike in the country. This new minimum wage law, which becomes effective on July 1, 2016, imposes different minimum wage rates for employers in the Portland, Oregon metro area and for employers located in the more rural parts of the state.
On Wednesday, the Bureau of Labor and Industries (BOLI) issued its much-anticipated administrative rules to implement these changes. The rules provide guidance to employers with individuals who provide services in multiple Oregon geographic regions during any given pay period. Oregon Administrative Rule 839-020-0011 provides three key rules to follow:
- If an employee performs more than 50% of his/her work during a pay period at a fixed business location, the minimum wage rate for the region encompassing that business location applies to all hours worked during the pay period.
- Delivery workers who start and end their work at the same fixed business location should be paid at least the minimum wage rate for the region encompassing that business location, notwithstanding deliveries made outside that region.
- For those employees who do not perform more than 50% of their work during a pay period at a fixed business location, the employer must either (a) track (and maintain record of) where the employee performs his/her work and pay at least the applicable wage rate for each region where the work was performed, or (b) for all hours worked during the pay period, pay the highest wage rate required for any region in which the employee worked.
Employers should review their payroll practices, evaluate the options above for those employees working in more than one region, and implement any required changes by July 1.