71st OREGON LEGISLATIVE ASSEMBLY--2001 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 2464
Senate Bill 443
Sponsored by Senator HARPER (at the request of Oregon Restaurant
Association)
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.
Permits tip credit against minimum wage. Permits reduction of
minimum wage rate to employees under age 18 for first 60 calendar
days of employment.
A BILL FOR AN ACT
Relating to minimum wage; creating new provisions; and amending
ORS 653.010, 653.027 and 653.035.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 653.010 is amended to read:
653.010. As used in ORS 653.010 to 653.261, unless the context
requires otherwise:
{ - (1) 'Average weekly wage' means the average weekly wage
of workers in covered employment in Oregon, as determined by the
Employment Department for the preceding fiscal year. - }
{ - (2) - } { + (1) + } 'Commissioner' means the
Commissioner of the Bureau of Labor and Industries.
{ - (3) - } { + (2) + } 'Employ' includes to suffer or
permit to work; however, 'employ' does not include voluntary or
donated services performed for no compensation or without
expectation or contemplation of compensation as the adequate
consideration for the services performed for a public employer
referred to in subsection { - (4) - } { + (3) + } of this
section, or a religious, charitable, educational, public service
or similar nonprofit corporation, organization or institution for
community service, religious or humanitarian reasons or for
services performed by general or public assistance recipients as
part of any work training program administered under the state or
federal assistance laws.
{ - (4) - } { + (3) + } 'Employer' means any person who
employs another person including the State of Oregon or a
political subdivision thereof or any county, city, district,
authority, public corporation or entity and any of their
instrumentalities organized and existing under law or charter.
{ - (5) - } { + (4) + } 'Minor' means any person under 18
years of age.
{ - (6) - } { + (5) + } 'Occupation' means any occupation,
service, trade, business, industry, or branch or group of
industries or employment or class of employment in which
employees are gainfully employed.
{ - (7) - } { + (6) + } 'Organized camp' means a day or
resident camp, whether or not operated for profit, established to
give campers recreational, creative, religious or educational
experience in cooperative group living wherein the activities are
conducted on a closely supervised basis, whether or not the camp
is used primarily by an organized group or by members of the
public and whether or not the activities or facilities are
furnished free of charge or for the payment of a fee.
{ - (8) - } { + (7) + } 'Outside salesperson' means any
employee who is employed for the purpose of and who is
customarily and regularly engaged away from the employer's place
or places of business in making sales, or obtaining orders, or
obtaining contracts for services and whose hours of work of any
other nature for the employer do not exceed 30 percent of the
hours worked in the workweek by the nonexempt employees of the
employer.
{ - (9) - } { + (8) + } 'Piece-rate' means a rate of pay
calculated on the basis of the quantity of the { - crop
harvested - } { + work performed or services rendered + }.
{ - (10) - } { + (9) + } 'Salary' means no less than the
wage set pursuant to ORS 653.025, multiplied by 2,080 hours per
year, then divided by 12 months.
{ - (11) - } { + (10) + } 'Wages' means compensation due to
an employee by reason of employment, payable in legal tender of
the United States or check on banks convertible into cash on
demand at full face value, subject to such deductions, charges or
allowances as are permitted in ORS 653.035.
{ - (12) - } { + (11) + } 'Work time' includes both time
worked and time of authorized attendance.
SECTION 2. ORS 653.027 is amended to read:
653.027. { + (1) + } An employer who employs { - individuals
under 18 years of age - } { + a minor + } in agricultural labor
and who pays { - such individuals by the amount of work
produced or services rendered - } { + the minor on a piece-rate
basis + } shall pay { - such individuals the same rate of
payment for the work produced or services required as paid - }
{ + the minor no less than the piece-rate the employer pays + }
to individuals 18 years of age or older.
{ + (2) When an employer pays a minor on other than a
piece-rate basis, for the first 60 calendar days of employment
the employer, notwithstanding ORS 653.025, may pay the minor an
opportunity wage determined under subsection (3) of this section.
(3) In determining the amount of the opportunity wage in
subsection (2) of this section, the employer may set a wage rate
that is less than the minimum wage provided for in ORS 653.025 by
up to 50 cents an hour if:
(a) After setting the rate, the amount of the opportunity wage
is not less than $6.50 an hour; and
(b) The employer notifies the minor of the provisions of this
subsection and subsection (2) of this section before the start of
employment.
(4) An employer may not take any action to displace employees,
including partial displacements such as reduction in hours, wages
or benefits, for the purpose of hiring a minor at an opportunity
wage determined under subsection (3) of this section. + }
SECTION 3. ORS 653.035 is amended to read:
653.035. (1) Employers may deduct from the minimum wage to be
paid employees under ORS 653.025, 653.030 or 653.261 { - , - }
the fair market value of lodging, meals or other facilities or
services furnished by the employer for the private benefit of the
employee.
(2) Employers may include commission payments to employees as
part of the applicable minimum wage for any pay period in which
the combined wage and commission earnings of the employee will
comply with ORS 653.010 to 653.261. In any pay period
{ - where - } { + in which + } the combined wage and
commission payments to the employee do not add up to the
applicable minimum wage under ORS 653.010 to 653.261, the
employer shall pay the minimum rate as prescribed in ORS 653.010
to 653.261.
(3) { + (a) + } Employers { - , including employers regulated
under the Federal Fair Labor Standards Act, may not include
any - } { + may include an + } amount received by employees as
tips in determining the amount of the minimum wage required to be
paid by ORS 653.010 to 653.261. { + However, in determining
the amount of the minimum wage required to be paid, an employer
may not include an amount of tips that:
(A) Reduces the net wage to less than $6.50 an hour;
(B) Exceeds the amount of tips actually received by an
employee; or
(C) Exceeds 50 percent of the minimum wage required to be paid.
(b) This subsection applies only to an employee who:
(A) Customarily receives or is allocated $30 or more per month
in tips;
(B) Keeps tips received by the employee or received as a share
of tips pooled with other employees; and
(C) Is notified by the employer of the provisions of this
subsection before the start of the pay period to which the
employer seeks to apply the provisions. + }
SECTION 4. { + (1) The amendments to ORS 653.027 by section 2
of this 2001 Act apply only to employment relationships entered
into on or after the effective date of this 2001 Act.
(2) The amendments to ORS 653.035 by section 3 of this 2001 Act
apply only to wages earned in pay periods that begin on or after
the effective date of this 2001 Act. + }
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