New BOLI Rules for Calculating Payment of Minimum Wage

The first annual increase to Oregon’s minimum wage takes effect on Friday, July 1, 2016.  The rate of increases varies depending on geographic location.  The minimum wage in non-urban counties will increase to $9.50 per hour, while the minimum wage in the rest of the state increases to $9.75 per hour.

The Bureau of Labor and Industries (BOLI) recently issued administrative rules to guide employers on how to calculate wages of individuals who work in more than one geographic region in a given pay period.

  1. Work performed at a permanent fixed business location. If an employee performs more than 50% of his or her work in a pay period at a fixed business location in Oregon, the minimum wage rate for the region where that business is located applies to all hours worked during that pay period.
  2. Delivery workers who begin and end at a fixed business location. If a delivery worker begins and ends his or her work at the employer’s fixed business location, he or she is paid the prevailing minimum wage rate for that location regardless of whether the employee makes deliveries to other geographic regions.
  3. Work performed other than at a fixed business location.  If an employee works in multiple geographic regions during a pay period and does not perform more than 50% of his or her work in a fixed business location, then the employer may (a) track (and maintain record of) the hours worked in each geographic region and pay the applicable minimum wage for each hour worked in each region, or (b) pay the highest applicable minimum wage rate for all hours worked during that pay period.


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