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Oregon Implements a Tiered Minimum Wage Rate


Recently, Oregon's House of Representatives passed a bill that would create a tiered minimum wage rate in the state.  Under the bill approved in the House, different minimum wage rates wold go into effect around the state, depending upon population density.  This was one of the more unique proposals to come out on the minimum wage front, in regard to how to handle minimum wage rates for workers not only in larger cities such as Portland, but smaller towns and rural areas such as Astoria or Valley Falls.

In the final bill approved by the Senate and signed into law by Governor Kate Brown, workers inside Portland's urban growth boundary will receive $14.75/hour, $13.50/hour for workers in midsize counties, and $12.50/hour for workers in rural areas.  These tiered minimum wage rates will go into effect by 2022.  

While some supporters of a minimum wage hike had advocated for a $15/hour minimum wage rate, this final bill was still not sufficient.  With that being said, I think the Oregon Legislature developed a creative way to find a bill that could actually pass (and not devastate small town businesses that would struggle to make ends meet if forced to pay their employees $15/hour).  Whether other states follow suit and adopt a tiered minimum wage rate is hard to say.  I could see New York considering this option if the proposed $15/hour minimum wage rate is defeated.  Stay tuned.




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