New Oregon Minimum Wage, Pay Stub and Pay Record Requirements

Our blog readers will recall from an earlier blog post that Oregon has adopted a new regional minimum wage system that increases state minimum wage rates in a series of installments beginning July 1, 2016, based on the region in which the employer is located.

Initially, in the urban area of Portland and in midsize counties, the minimum wage rate will increase from $9.25 per hour to $9.75 per hour. In rural areas the minimum wage rate will increase from $9.25 per hour to $9.50 per hour. By July 1, 2022, the minimum wage rates will reach to $14.75 per hour inside Portland’s urban growth boundary, $13.50 per hour in midsize counties and $12.50 per hour in rural areas. Beginning July 1, 2023, and each July 1 thereafter, the minimum wage rate will be adjusted for inflation.

PAY STUBS & PAY RECORDS

Beginning January 1, 2017, Oregon will also require additional disclosures on wage statements and increase an employer’s time and pay records retention responsibilities. Under new law, employers will be required to provide employees with written wage statements itemizing the following information on each statement:

• The date of payment;
• The dates of work covered by the payment;
• The name of the employee;
• The employer’s name and business registry number or business identification number;
• The address and telephone number of the employer;
• The rate or rates of pay;
• Whether the employee is paid by the hour, shift, day or week or on a salary, piece or commission basis;
• The employee’s gross wages for the pay period;
• The employee’s net wages for the pay period;
• The amount and purpose of each deduction made during the respective period of service that the payment covers;
• Allowances, if any, claimed as part of minimum wage;
• For non-exempt employees, the regular and overtime rates of pay, the number of regular and overtime hours worked and pay for those regular and overtime hours; and
• For piece rate workers, the applicable piece rate or rates of pay, the number of pieces completed at each piece rate and the total pay for each rate.

A paystub may be provided in electronic format if it contains the necessary disclosures, the employee expressly agrees to receive the statement in electronic form, and the employee has the ability to print or store the statement at the time of receipt. Finally, the new law will require employers to retain time and pay records for a period of three years.

These laws together with the State’s mandatory workplace posting requirement are designed to improve employee working conditions, increase pay transparency, prevent wage theft and expose wage and hour violations. Employers should review payroll and recordkeeping practices and update workplace posters to ensure compliance.