”Brian

”Brian

”Principal”

”Increase

If you work or own a business in Oregon, beginning on July 1st, 2016 there is a change coming to the Oregon minimum wage that may have an impact on you or your business!

There will be a tiered minimum wage increase implemented each year in July, beginning in 2016 until 2023.  This is how it will work:

In Jackson and Josephine Counties-

Year of Change

 

Increase for the Year

 

New Minimum Wage

July 1, 2016 .50 Cents $9.75
July 1, 2017 .50 Cents $10.25
July 1, 2018 .50 Cents $10.75
July 1, 2019 .50 Cents $11.25
July 1, 2020 .75 Cents $12.00
July 1, 2021 .75 Cents $12.75
July 1, 2022 .75 Cents $13.50
July 1, 2023 Adjusted annually based on the increase, if any, to the US City average Consumer Price Index for All Urban Consumers

 

 

* The Portland metro will also increase to $9.75 but then increase each year by 75 cents.  There are also non-urban counties which will start at $9.50 and increase each year by 50 cents.

Beginning July 1st, 2023 each area will have an increase based on the US City average Consumer Price Index for All Urban Consumers.

What does this mean for the business owner? 

As the plan is implemented, it will be imperative for business owners to watch their gross profit margins to ensure the percentage isn’t decreasing at a rate which isn’t sustainable for the company.  If you aren’t sure how this could change your bottom line then contacting your CPA should be your first step.

For more information on this topic, click on the link below to the State of Oregon website and the detailed map and descriptions.

Call Legacy Financial CPAs today at (541) 326-0993 or contact us for an evaluation to see how your business may be impacted by this new law.