It’s 2018! That means your Oregon marijuana business will be subject to increased minimum wage requirements this summer. The new federal Tax Act has everyone considering money, so now is a great time to think about how the increase in state minimum wage will affect your business expenses.
In 2015 the Oregon legislature established a progressive series of annual minimum wage rate increases. The rate increases began on July 1, 2016 and continue through July 1, 2022. On July 1, 2023 the minimum wage rate will be indexed to inflation based on the consumer price index, which is a figure published by the United States Bureau of Labor Statistics.
The location of your Oregon cannabis business will dictate the amount of increase of the minimum wage for your non-exempt employees this July. (“Non-exempt employees” are employees who must be paid minimum wage and overtime, for any hours worked beyond 40 in a given week.)
|Date||Standard||Portland Metro||Nonurban Counties|
|July 1, 2016||$9.75||$9.75||$9.50|
|July 1, 2017||$10.25||$11.25||$10.00|
|July 1, 2018||$10.75||$12.00||$10.50|
|July 1, 2019||$11.25||$12.50||$11.00|
|July 1, 2020||$12.00||$13.25||$11.50|
|July 1, 2021||$12.75||$14.00||$12.00|
|July 1, 2022||$13.50||$14.75||$12.50|
|July 1, 2023||Adjusted annually based on the increase, if any, to the US City average Consumer Price Index for All Urban Consumers||$1.25 over the standard minimum wage||$1 less than the standard minimum wage|
The Portland Metro rate applies to all employers located within the urban growth boundary. Metro has an Urban Growth Boundary tool to help determine if your cannabis business is within the Portland Metro area. The nonurban counties rate applies to: Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Marrow, Sherman, Umatilla, Union, Wallowa, and Wheeler. All other counties must pay the standard rate.
Both the state of Oregon and the federal government set minimum wage requirements. The federal minimum wage is and remains at $7.25. As you can tell, Oregon’s minimum wage is significantly higher than the federal minimum wage. When federal and state employment laws conflict, employers must apply whichever standard is most beneficial to employees. In the case of minimum wage, Oregon employers, including all cannabis businesses, must pay their employees minimum wage based on the Oregon rate. Start planning ahead.