A number of changes have hit the State of Oregon this past week, affecting a wide range of individuals. Oregon’s minimum wage increased this past Monday, and on Sunday, Oregon legislators passed a bill that will make the state the eighth in the nation to offer paid family and medical leave.
Oregon Minimum Wage Increase
July 1st marked the increase of Oregon’s minimum wage which increased by fifty cents to $11.25. Workers in the Portland-Metro area will see the minimum wage increase to $12.50, with the minimum wage in non-urban counties rising to $11 per hour. This is the fourth increase to the state’s minimum wage that Oregon has seen in the last four years.
The minimum wage increase was part of Senate Bill 1532, a three-tier minimum wage system that was passed in 2016 which locked in annual increases to the minimum wage through 2022, at which time the minimum wage will cap at $14.75 in the Portland-Metro area. After this time, any increases to the state’s minimum wage will be directly tied to inflation.
Paid Family and Medical Leave
On Sunday, June 30th, Senators in Oregon voted 21-6 to send House Bill 2005 to the governor, which proposes paid family and medical leave to workers who make more than $1,000 a year 12 weeks of paid leave for medical or family reasons. An incredibly generous program, this is the first paid leave program in the country which would offer 100% paid leave to low-income workers.
Employees and businesses will be required to contribute to this program, with small businesses being exempt from contributions. Workers will expect to see this benefit take effect in 2023.
HRCentral will reach out to our clients individually if and when these updates affect their organization. Contact us today if you have any questions regarding either of these recent updates!