labor lawAdivision of labor law center

Labor Commissioner Dan Gardner announced an increase in Oregon’s state minimum wage on September 16, 2007. That increase went into effect on January 1, 2008, bringing the Oregon state minimum wage up 15 cents to $7.95 per hour.

Prior to January 1 of this year, Oregon held the honor of second-highest state minimum wage in the country. With the New Year increase, however, Oregon dropped to fourth place behind California and Massachusetts, which are tied for second at $8.00 per hour. Top honors go to Washington’s state minimum wage of $8.07 per hour.

Changes to Oregon’s state minimum wage are enacted on the first day of each year. The increases are calculated using the CPI (Consumer Price Index) inflation rate and rounding up to the nearest nickel.

In 2002, the Labor Commissioner led the effort to pass Ballot Measure 25 to legislate a cost of living increase in Oregon’s state minimum wage. Over 12 states followed Oregon’s lead and instituted minimum wage statutes which included cost-of-living increases.

Oregon voters began their minimum wage increase trend back in 1996. A measure to raise the minimum wage in 50 cents increments over two years, gave Oregon workers a total increase of $1.50 per hour. Measure 25 in 2002 established annual raises for the minimum wage and bumped the current minimum to $6.90 per hour.

Commissioner Gardner states that Oregon minimum wage workers are still at a disadvantage. An advocacy group for minimum wage workers, the Oregon Center for Public Policy, reported that over the previous three years, the average pay raise was 1% for wages in the 25 lowest-paying industries. Conversely, the average pay raise in the 25 highest-paying industries ranked at 10% for the same time period.

Oregon employers needing more information can turn to BOLI, Oregon’s state Bureau of Labor and Industry. BOLI recommends all Oregon employers, supervisors, managers and human resource professionals attend BOLI’s Technical Assistance seminars. The state of Oregon declares “BOLI seminars are acclaimed as an effective and proactive way to help keep your organization in compliance with labor laws — and out of court.”

January 1, 2008 saw an increase in state minimum wage for fourteen states, including Montana, Arizona, Iowa and Delaware and ten others. These raises, however, are just the first of many increases slated for 2008.

The first of these increases will occur on July 1, 2008. Three states will enjoy a substantial raise at this time. Kentucky will add 70 cents to its minimum resulting in a new rate of $6.55. West Virginia will also see a 70 cent bump, from $6.55 to $7.25 per hour. Employees in Pennsylvania, however, will see the biggest boost, a 90 cent jump from $6.25 to $7.15

Workers in Kentucky will receive a raise in minimum wage of $6.55 per hour, a bump of 70 cents from $5.85. A 70 cent raise will also be given to minimum wage employees in West Virginia resulting in a new rate of $7.25 per hour.

On May 24, 2006, President George W. Bush signed the Fair Minimum Wage Act of 2007 into law. This law set up increases in the federal minimum wage as a three-step system. On July 24, 2008, the second step of the Fair Minimum Wage Act’s system goes into effect. The federal minimum wage will go up from $5.85 to $6.55 per hour.

Minimum wage in the District of Columbia is also tied to the federal minimum wage. The D.C. law, however, requires its minimum to be at least $1.00 more than the federal rate. On July 24, 2008, therefore, D.C.’s minimum wage rate will become $7.55 per hour, exactly $1.00 greater than the federal minimum of $6.55 per hour.

Employers must be aware that when any labor laws change, either state or federal, they must update their labor law posters. For more information businesses can go to www.laborlawcenter.com.

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