Effective July 1, 2022 the OR minimum wage increases to;
$14.75/hour inside Portland Metro area. Within the urban growth boundary, including parts of Clackamas, Multnomah, and Washington Counties;
$13.50/hour in standard counties Benton, Clat
sop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, Yamhill, and parts of Clackamas, Multnomah, & Washington outside the urban growth boundary.
$12.50/hour in nonurban counties Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler Counties.
Why You Should Pay Attention:
Risk losing your tenured employees. Each time the minimum wage increases and you do not adjust your employees who make more than minimum wage a wage compression occurs. This means that your skilled staff who make more than minimum wage, their wages not keeping up with cost of living and this may encourage them to look for other employment opportunities. Please conduct a wage survey and we recommend implementing a compensation strategy that includes a wage range and scale that you can build into your budget.
Let's say you choose not to adjust your current employee's wages and someone leaves your employ. You will likely have to hire someone into the job at a higher rate, train them, and hope they stay with you. What if the employee talks about wages to others in a similar job and they make less? Now you have a potential employee morale issue and Pay Equity Law violation and possible discrimination claim.
Minimum wage is adjusted annually based on the increase, if any, to the US City average Consumer Price Index for All Urban Consumers (Source. BOLI Min. Wage, Retrieved from https://www.oregon.gov/boli/workers/Pages/minimum-wage-schedule.aspx)
The Portland Metro area will increase $1.25 over the standard minimum wage and nonurban counties will adjust to $1 less than the standard minimum wage.
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We are glad to conduct a salary analysis or help you with any other business or HR and Risk Mgt. questions.