Increase in Oregon Minimum Wage on July 1, 2017

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Oregon business owners are anticipating another minimum wage increase this summer.

On July 1, 2017, all three county divisions will see an increase the minimum wage.

  • $1.50 raise for the Portland Metro area (from $9.75 to $11.25)
  • $0.50 raise for standard counties (from $9.75 to $10.25)
  • $0.50 raise for nonurban counties (from $9.50 to $10)

Each increase is a part of a series of annual minimum wage increases enacted by the 2016 Oregon Legislature through Senate Bill 1532. This series started on July 1, 2016 and is projected to end on July 1, 2022, with a rate of $14.75 for the Portland Metro area. In subsequent years, the Oregon minimum wage rate will continue to adjust with the CPI. For more information or to learn which increase will affect your location, please see the Oregon.gov Minimum Wage Rate Summary.

There are several differing opinions on the effects of this increase on small business owners.

While some would argue that a rise in labor costs will require higher prices, cutting hours, and other adjustments to lower operating expenses, others maintain the argument that the minimum wage must be raised to adjust along with the cost of living. Regardless of your stance on the increase, this change requires small business owners to adapt and adjust their HR departments accordingly.

The Oregon minimum wage increase has several implications for business owners.

  • Payroll, often referred to as one of the largest expenses of any company, remains an increasing expense in the state of Oregon.
  • Increases in labor costs will require business owners to find new avenues to generate more revenue.

Rather than focusing their attention on payroll and feeling burdened with the various aspects of HR, it is important for business owners to focus on using their efforts efficiently to generate revenue, profitability, and growth.

By outsourcing HR, business owners can focus their efforts on creating a healthy, profitable business.

At Aliat, we fulfill all your HR needs. From payroll and benefits to wellness and healthcare, we will ensure that your employees are engaged and contributing to the growth of your company. Our team is dedicated to quality customer service and care so that we can relieve your stress and assist you in building a healthy business.

If you have questions on the Oregon minimum wage rate and how it affects your business, get in touch with our HR experts.

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