Oregon July 1 raises: 3 rules for pricing bid labor hours

Why July 1 matters on a bid

To price Oregon bid labor across July 1, split the hours at that date and price each part at the rate in force for it. BOLI's minimum wage page says Oregon minimum wage increases take effect on July 1st of each year. A bid priced in the spring can therefore be out of date by the time a crew starts after July 1.

Key takeaways

• Split labor hours at each July 1 that falls inside the job.
• Price each part at the rate in force for its own dates. Do not average the two rates.
• On public jobs, price from the contract pay sheet and confirm the contract signing date.
• Check the start date printed on every document you use.
• Write every date on the bid sheet.

This post gives you three rules for handling that. Rule 1 covers hourly pay that follows the state minimum wage. Rules 2 and 3 cover public jobs and the state pay rules that come with them. Use all three. Each one catches a different mistake.

Have these open before you start: BOLI's minimum wage page, the bid sheet for the job, and the contract paperwork. If you do not have the contract yet, ask for it before you finalize the bid. Rule 2 explains the question to ask the agency about the contract date.

This is a practical guide, not legal advice. It explains what BOLI's pages and the cited Oregon statute say, and it shows how to turn that into a labor number. If your contract or your lawyer says something different, follow the contract and the lawyer.

Rule 1: Price each hour at the rate for the day it is worked

Start by finding the current minimum wage figures on BOLI's minimum wage page, and note the effective date of each figure. Do not assume the size of a future change. Copy the figure for the location that matches the job, and write its effective date on your bid sheet.

Then split the labor at each July 1 inside the job. Here is the method:

1. Write down the planned first and last day of labor.
2. Mark every July 1 that falls between those dates. Each one is a split point.
3. Add up the hours worked before the split and the hours worked on or after it.
4. Price the earlier hours at the rate in force before July 1, and the later hours at the rate in force from July 1.
5. Multiply each part's hours by its rate, and add the two results to get the labor cost.
6. Check that the two parts of hours add back to the full count. If they do not, the split is wrong.

Do not average the two rates into one number. An average hides the change, and a client who checks the math cannot follow it. Put the date beside each rate in the bid, so a reader can see which hours used which rate.

A small sheet makes the split easy to read:

Take the Part A and Part B hours from your own crew schedule, not from an estimate of the whole job. The schedule is what the client will compare against, so it should be the first thing you check. If the schedule changes after you submit the bid, recalculate the split before you send any revised number.

A job that runs into a later year uses the same method. For work after the period covered by the current BOLI figures, use the figures BOLI posts for that period. Until you can confirm them, mark the number as an estimate and say so in the bid.

Illustrative example: a painting job split at July 1

A small painting crew works on a private building. The job starts a few weeks before July 1 and finishes a few weeks after it.

1. Write the start and finish dates.
2. Mark July 1. It falls inside the job, so the hours split there.
3. Count the hours on each side. Call the earlier set Part A and the later set Part B.
4. Price Part A at the rate in force before July 1.
5. Price Part B at the new rate from July 1, using the figure from BOLI's page for the job's location.
6. Multiply each part by its rate, and add the two results.
7. Check that Part A plus Part B equals the total hours in the schedule.

On the bid, write each line with its dates, such as "start date through the day before July 1: Part A hours at prior rate."

Rule 2: On public jobs, the contract's pay sheet sets the number

Oregon law says the paperwork for public jobs must state the existing state prevailing rate of wage. In plain words, the contract paperwork gives the prevailing wage rate you should use, so that is the number you price from.

The first step is to read the pay sheet attached to the bid documents. Find the trade for each worker. Write down the rate and the date printed on the sheet. Price from that sheet, not from a rate you saw on another job.

Look for amendment notes too. An amendment can change one trade and leave the others as they were. Read every line you use, not only the line you expected to see.

Example: a pay sheet lists one rate for a laborer and a different rate for an equipment operator. Price each worker's hours at the line for that worker's trade. Do not use one rate for the whole crew.

Contract dates can matter more than bid dates. BOLI's legislative updates page lists a change that applies "to public contracts that a contracting agency enters into, on or after July 1, 2026." Read that page's description of the change to see what kinds of work it covers, because the change does not reach every public job.

In plain words, the date the agency signs the contract decides whether that change reaches your job. The date you sent the bid does not. A bid sent before July 1, 2026 can still fall under the change if the contract is signed on or after that date.

Example, with a made-up signing date: a bid goes out in the spring. The agency signs the contract in a later month, after July 1, 2026. If the job includes work the change covers, the signing date is the one to check.

What to do: If your job might fall under that change, ask the agency in writing for the planned contract signing date. Write the date on your bid. If the answer is unclear, ask again before you submit. A written answer protects your number. For more on this, see carrying wage changes in a public bid.

Use this question in an email to the agency:

    
    Which pay sheet and which contract signing date apply to this job? Does any of the work fall under the change listed on BOLI's legislative updates page?

    
    

Rule 3: Check the start date printed on every document

Not every state date is July 1. BOLI's legislative updates page lists "PWR Occupational Definitions Effective July 5, 2026." These are prevailing wage (PWR) items for public jobs. Read BOLI's description of what the occupational definitions cover. A date a few days after July 1 is easy to miss if you only look at the month.

Write it beside the document's name. Do not assume a document applies from July 1 because the month sounds right.

Which date controls depends on the job. For hourly pay tied to the minimum wage, use Rule 1 and count by the day the hour is worked. For public work, the contract tells you which date controls. If the contract is silent, ask the agency in writing. Do not guess.

Read the contract with a highlighter. Mark every date, every trade name and every reference to a rate or a definition. Then check that each marked item matches a document in your bid file. A date that appears in the contract but not in your file is a question to ask before you price.

Example: a crew starts a public job shortly before July 1. The pay sheet is dated before July 1. The occupational definitions take effect on July 5, 2026. Which one covers the hours worked between the start and July 5? The contract answers that question. Read it before you price those days.

Keep a copy of each document with its date in the bid file. If a client asks months later why the number is what it is, you can show the exact paper you used.

Set up the bid sheet so the split shows

Use one row for each trade and each date range. A bid sheet with these columns makes every number traceable:

If a trade has two date ranges, it gets two rows. Do not merge them. A merged row hides the change that the client needs to see.

Mistakes that cost money

These five mistakes are easy to make. Each one has a fix.

1. Using the bid date instead of the work date. A bid sent before July 1 does not set the rate for hours worked after it. Fix: split the hours at July 1, as Rule 1 shows.
2. Copying a rate for the wrong location. Fix: pick the figure that matches the job's location.
3. Using an old pay sheet. The contract's pay sheet decides the rate on public work. Fix: check that the sheet you price from is the one attached to the bid, and that its date is printed on it.
4. Treating work covered by the contract-date change as ordinary work. The date the agency signs the contract can decide whether the change applies. Fix: write the signing date on the bid and check it against July 1, 2026.
5. Not writing the dates down. A number with no dates cannot be checked by the client or by you later. Fix: put the date beside every rate.

Checklist before you send a bid

Run through this list before any Oregon bid goes out. For more on labor for public jobs, see public bid labor checks before you lock costs.

1. Write the planned first and last day of labor on the bid sheet.
2. Find the minimum wage figure for the job's location on BOLI's minimum wage page, and note its effective date.
3. Split the hours at each July 1, and price each part at its own rate.
4. For a public job, copy the rate and its date from the pay sheet in the contract.
5. If the job might fall under the contract-date change, write the contract signing date on the bid and check it against July 1, 2026.
6. Write the start date of every document you use beside its name.
7. Save the sheet, the documents and the split in the bid file.

What these rules do not cover

These rules cover hourly pay only. They do not cover overtime, paid time off, payroll taxes, insurance or benefits. Those costs have their own rules and dates, so check each one before you finalize the bid. Other changes to a bid, such as material prices or equipment rental, are outside this post too.

Other states set their own minimum wages and pay dates. Do not use Oregon's July 1 date for a job in another state.

If a question is still open after you read the contract, ask the agency in writing. Keep the answer with the bid.

What to tell the client

Clients may ask why a number has two rates. Here is a plain answer you can use:

"Oregon's minimum wage can change on July 1, so we split the labor at that date. Here is the split, with the dates."

The short version

Price each hour at the rate for the day it is worked. On public jobs, price from the pay sheet in the contract, and check the date the contract is signed. Write every date on the bid so anyone can check your math. A bid that shows its dates is easier to defend.

Do not wait until the day you send the bid to check the rates. Check them when you start pricing, then again just before you send. A bid is only as current as its last check.