(1) Except as provided in subsections (2) and (3) of this section, ORS § 652.020 and the rules of the Commissioner of the Bureau of Labor and Industries issued under ORS § 653.030 and 653.261, for each hour of work time that the employee is gainfully employed, no employer shall employ or agree to employ any employee at wages computed at a rate lower than:

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(a) For calendar year 2003, $6.90.

(b) From January 1, 2004, to June 30, 2016, a rate adjusted for inflation as calculated by the commissioner.

(c) From July 1, 2016, to June 30, 2017, $9.75.

(d) From July 1, 2017, to June 30, 2018, $10.25.

(e) From July 1, 2018, to June 30, 2019, $10.75.

(f) From July 1, 2019, to June 30, 2020, $11.25.

(g) From July 1, 2020, to June 30, 2021, $12.

(h) From July 1, 2021, to June 30, 2022, $12.75.

(i) From July 1, 2022, to June 30, 2023, $13.50.

(j) After June 30, 2023, beginning on July 1 of each year, a rate adjusted annually for inflation as described in subsection (5) of this section.

(2) If the employer is located within the urban growth boundary of a metropolitan service district organized under ORS Chapter 268, except as provided by ORS § 652.020 and the rules of the commissioner issued under ORS § 653.030 and 653.261, for each hour of work time that the employee is gainfully employed, no employer shall employ or agree to employ any employee at wages computed at a rate lower than:

(a) From July 1, 2016, to June 30, 2017, $9.75.

(b) From July 1, 2017, to June 30, 2018, $11.25.

(c) From July 1, 2018, to June 30, 2019, $12.

(d) From July 1, 2019, to June 30, 2020, $12.50.

(e) From July 1, 2020, to June 30, 2021, $13.25.

(f) From July 1, 2021, to June 30, 2022, $14.

(g) From July 1, 2022, to June 30, 2023, $14.75.

(h) After June 30, 2023, $1.25 per hour more than the minimum wage determined under subsection (1)(j) of this section.

(3) If the employer is located within a nonurban county as described in ORS § 653.026, except as provided by ORS § 652.020 and the rules of the commissioner issued under ORS § 653.030 and 653.261, for each hour of work time that the employee is gainfully employed, no employer shall employ or agree to employ any employee at wages computed at a rate lower than:

(a) From July 1, 2016, to June 30, 2017, $9.50.

(b) From July 1, 2017, to June 30, 2018, $10.

(c) From July 1, 2018, to June 30, 2019, $10.50.

(d) From July 1, 2019, to June 30, 2020, $11.

(e) From July 1, 2020, to June 30, 2021, $11.50.

(f) From July 1, 2021, to June 30, 2022, $12.

(g) From July 1, 2022, to June 30, 2023, $12.50.

(h) After June 30, 2023, $1 per hour less than the minimum wage determined under subsection (1)(j) of this section.

(4) The commissioner shall adopt rules for determining an employer’s location under subsection (2) of this section.

(5)(a) The Oregon minimum wage shall be adjusted for inflation as provided in paragraph (b) of this subsection.

(b) No later than April 30 of each year, beginning in 2023, the commissioner shall calculate an adjustment of the wage amount specified in subsection (1)(j) of this section based upon the increase, if any, from March of the preceding year to March of the year in which the calculation is made in the U.S. City Average Consumer Price Index for All Urban Consumers for All Items as prepared by the Bureau of Labor Statistics of the United States Department of Labor or its successor.

(c) The wage amount as adjusted under this subsection shall be rounded to the nearest five cents.

(d) The wage amount as adjusted under this subsection becomes effective as the new Oregon minimum wage amount, replacing the minimum wage amount specified in subsection (1)(j) of this section, on July 1 of the year in which the calculation is made. [1967 c.596 § 4; 1973 c.403 § 3; 1975 c.504 § 1; 1979 c.832 § 1; 1979 c.886 § 1; 1985 c.99 § 2; 1985 c.161 § 1; 1989 c.446 § 4; 1997 c.1 § 1; 2003 c.2 § 1; 2016 c.12 § 1; 2017 c.17 § 52]