As reported earlier (in “It’s Official — Oregon’s Minimum Wage Is Increasing”), Oregon has passed legislation which will increase minimum wage in Oregon over the next 7 years on a tiered schedule based on the employer’s location.
Previously, it was unclear how employers would determine which increase schedule to follow. In an effort to answer that question, the Oregon Bureau of Labor and Industries has proposed new rules that, if adopted, will define an employer’s geographical location and will clarify how employees should be paid if they work in more than one region.
With respect to the employer’s geographical location, the proposed rules state the following:
“Employer’s location” means any place where an employer employs any employee for more than an incidental period of time during the employee’s established workweek. An employer has more than one location if the employer has employees performing work in multiple regions during the same pay period. For example, an employer whose headquarters is located in Region 1 who provides contracted janitorial services to buildings in Region 1 and Region 2 is located in both Region 1 and Region 2.
The “regions” are defined as follows:
“Region 1” includes all parts of the state of Oregon not specifically included in Region 2 or Region 3 as defined.
“Region 2” includes the areas in the counties of Multnomah, Washington and Clackamas counties that are within the urban growth boundary as identified by the metropolitan service district.
“Region 3” includes the counties of Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa and Wheeler.
The proposed rules further define “incidental period of time” to mean a period of time
less than four (4) hours of an employee’s compensable time during any workweek. Time spent by an employee in a region solely for the purpose of travelling through the region from a point outside the region to another outside the region with no employment or work-related stops is an incidental period of time.
The term “workweek” means
any seven (7) consecutive twenty four (24) hour period as determined by the employer. The beginning of the workweek may be changed if the change is intended to be permanent and is not designed to evade the payment of minimum wage requirements of this rule.
Finally, the proposed rules clarify how the employer is to pay an employee when he performs work for “more than an incidental period of time” in more than one region during the workweek. In that case, the employer must pay the employee either
- No less than the hourly rate of pay at the highest rate of wage required for any region specified in the law in which the employee worked during the workweek for all hours worked by the employee; or
- No less than the hourly rate of pay at the applicable minimum rate of wage for each hour worked in each region in which the employee worked during the workweek.
These rules have not yet been adopted by the Oregon Bureau of Labor and Industries. We will keep you informed of any developments with this proposed rule.