73rd OREGON LEGISLATIVE ASSEMBLY--2005 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 243
 
                         Senate Bill 451
 
Sponsored by Senator KRUSE; Senators BEYER, GEORGE, MORSE, C
  STARR, WESTLUND, WHITSETT, WINTERS
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Allows reduced minimum wage for employees under 18 years of age
for first 60 calendar days of employment. Establishes minimum
wage for certain tipped employees.
 
                        A BILL FOR AN ACT
Relating to minimum wage; creating new provisions; and amending
  ORS 653.025.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 653.025 is amended to read:
  653.025. (1) Except as provided by ORS 652.020  { + and
sections 3 and 4 of this 2005 Act + } 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 - }   { + an + }
employer   { - shall - }   { + may not + } employ or agree to
employ any employee at wages computed at a rate lower than:
  (a) For calendar year 1997, $5.50
  (b) For calendar year 1998, $6.00
  (c) For calendar years after December 31, 1998, and before
January 1, 2003, $6.50.
  (d) For calendar year 2003, $6.90.
  (e) For calendar years after 2003, a rate adjusted for
inflation.
  (2)(a) The Oregon minimum wage shall be adjusted annually for
inflation, as provided in paragraph (b) of this subsection.
  (b) No later than September 30 of each year, beginning in
calendar year 2003, the commissioner shall calculate an
adjustment of the wage amount specified in subsection (1) of this
section based upon the increase { + , + }   { - ( - } if
any { + , + }  { - ) - }  from August of the preceding year to
August 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 established under this subsection shall:
  (A) Be rounded to the nearest five cents; and
  (B) Become effective as the new Oregon minimum wage, replacing
the dollar figure specified in subsection (1) of this section, on
January 1 of the following year.
 
  SECTION 2.  { + Sections 3 and 4 of this 2005 Act are added to
and made a part of ORS 653.010 to 653.261. + }
  SECTION 3.  { + (1) An employer may pay a minor, for the first
60 calendar days of employment with that employer, an opportunity
wage rate that is 50 cents an hour less than the wage rate
established under ORS 653.025.
  (2) An employer may not take any action to displace employees,
including partial displacements such as reduction of hours, wages
or benefits, for the purpose of hiring an employee at the
opportunity wage rate determined under subsection (1) of this
section. + }
  SECTION 4.  { + (1) If an employee earns tips and is required
to report those tips to the employer under section 6053 of the
Internal Revenue Code and the regulations promulgated thereunder,
the employer may not employ the employee at a wage rate lower
than $6.90 an hour.
  (2) This section applies only to an employee who:
  (a) Customarily receives or is allocated $30 or more a month in
tips;
  (b) Has been notified by the employer of the provisions of this
section before the start of the pay period to which the employer
seeks to apply the provisions; and
  (c) Keeps tips received by the employee or who receives a share
of tips pooled with other employees.
  (3) An employer may not take any action to displace employees,
including partial displacements such as reduction of hours, wages
or benefits, for the purpose of hiring an employee at the hourly
rate determined under subsection (1) of this section. + }
  SECTION 5.  { + Sections 3 and 4 of this 2005 Act and the
amendments to ORS 653.025 by section 1 of this 2005 Act apply
only to work performed on or after the effective date of this
2005 Act. + }
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