Bill > HB2962

This bill proposes a comprehensive overhaul of Oregon's minimum wage calculation methodology, with significant changes set to take effect on July 1, 2026. The bill directs the Bureau of Labor and Industries to establish a new formula for setting minimum wage rates that takes into account regional economic differences and housing affordability. Specifically, the new method will use fair market rent calculation methodology to determine minimum wage rates across different regions of Oregon, with the goal of ensuring that workers earning minimum wage can afford a one-bedroom apartment (defined as spending no more than 30% of monthly income on rent). Starting July 1, 2026, the minimum wage will initially be $2 more than the previous minimum wage, with subsequent annual increases of $2, subject to a formula-based maximum. The Bureau of Labor and Industries will calculate these rates annually using fair market rent estimates from the federal Department of Housing and Urban Development, and will adopt rules to implement this new approach. The bill also makes corresponding technical amendments to various other Oregon Revised Statutes to reference this new minimum wage calculation method, ensuring consistency across state labor and employment regulations.

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2962