Oregon Minimum Wage Goes to $7.95

November 26th, 2007 Posted by Amelia

On January 1, 2008 the Oregon state minimum wage will increase to $7.95 per hour. The increase was announced by Labor Commissioner Dan Gardner on September 16, 2007. This is a 15-cent increase from the state’s current rate of $7.80 per hour.

Oregon’s minimum wage is currently the second highest in the nation. However, on the first day of 2008 it will become the fourth highest in the nation, as the minimum wage in New York and Massachusetts increase to $8.00 per hour. On that same day, the minimum wage in Washington will increase to $8.07 per hour, once again making it the nation’s highest.

“Oregon’s minimum wage law makes sure these workers’ wages keep pace with [the] rising cost of living,” Labor Commissioner Dan Gardner said.

The Labor Commissioner was instrumental in leading the successful 2002 effort to pass Ballot Measure 25 and introduce a cost of living increase for the state’s minimum wage. Many states have followed suits, and at least 12 states currently include cost-of-lving increases in their current minimum wage statutes.

The annual increases in the Oregon minimum wage are calculated based on the Consumper Price Index or CPI. The CPI inflation rate is rounded up to the nearest nickel, and the change goes into effect on the first day of each year.

The current trend in Oregon minimum wage dates back to 1996, when voters approved a measure that increased the state minimum wage by $1.50 in three 50-cent increments spread over more than two years. In 2002, Measure 25 increased the sate minimum wage to $6.90 per hour, and implemented annual increases.

Every employer in the state must prominently display an updated Oregon minimum wage poster. Posters are available at www.laborlawcenter.com.

According to Commissioner Gardner, minimum wage workers in Oregon are still disadvantaged. The Oregon Center for Public Policy, an advocacy group for minimum wage workers, reports that wages in the 25 lowest-paying industries, the average pay raise was just 1% over the past three years. By contrast, in the 25 highest-paying industries, the average pay raise was 10% over the same period.

For employers who would like more information on the Oregon labor laws including the state minimum wage law, BOLI, the state Bureau of Labor and Industry, offers quality Technical Assistance seminars. BOLI recommends these seminars for all Oregon employers, supervisors, managers and human resource professionals. At them, BOLI trainers work closely with bureau enforcement divisions to present up-to-date information. According to the state of Oregon, “BOLI seminars are acclaimed as an effective and proactive way to help keep your organization in compliance with labor laws — and out of court.” A schedule of seminar fees can be found here.

Wage and Hours seminars will be conducted in Portland on December 11, and in Salem at Roth’s Hospitality Center on December 12. A seminar on state leave laws is scheduled for December 13 in Portland, and a seminar on recordkeeping for employers is scheduled for December 18 in Portland. All of the Portland events are held at the State Office Building.

In Addition, on December 5 and 6, BOLI sponsors the stat’s 23rd Annual Employment Law Conference in Portland at the Oregon Convention Center.

Oregon is not the only state that will roll out a minimum wage increase on January 1, 2008. At least 14 states in total will introduce increases. This ranges from a 15-cent cost of living increase in Missouri, to 50-cent increases in Delaware, New York and Massachusetts. Florida’s minimum wage will increase from $6.65 per hour to $6.79 per hour, while the rate in Iowa increases a whopping $1.05 per hour, from $6.20 to $7.25. 

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Posted in Employment Laws, Minimum Wage, Oregon, Overtime, Wage and Hour

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