Oregon Employment Law Update 2018
Oregon continues to increase the minimum wage, using a three-boundary minimum wage system. On July 1, 2018, the urban (Portland Metropolitan Area) minimum hourly wage increases to $12.00, the non-urban (designated rural areas) minimum hourly wage increases to $10.50, and the standard (all other areas) minimum hourly wage increases to $10.75.
Starting in 2016, Oregon began requiring all employers to allow sick leave to employees. The leave is paid or unpaid depending on the employer’s number of employees. Employers may now limit the number of hours of sick time employees can accrue to 40 hours in a year and cap total accrual balances, including any carry over from prior years, to 80 hours.
New Payroll Tax
As of July 1, 2018, employers must withhold and pay to the Oregon Department of Revenue one-tenth of one percent (0.1%) of total wages earned by employees residing in or performing services in Oregon. The revenue from this tax is for public transit improvements.
Earned Income Tax Credit Notices
Oregon’s Bureau of Labor and Industry (BOLI) is making rules for employers to give written notice to employees of the availability of state and federal earned income tax credits. Notices must be in English and the language used to communicate with employees and must provide website addresses to find additional information. Notices will need to be emailed or mailed at the same time or with the employee’s W-2 form.