labor lawAdivision of labor law center

Roughly a dozen states in the U.S. base their annual minimum wage rate hikes on regional inflation levels.

The state of Oregon is one of these. Because Oregon’s cost of living increased by a dramatic 5.37% between August 2007 and August 2008, the minimum wage rate also increased significantly.

The minimum wage went up 45 cents an hour on January 1, 2009, from $7.95 to $8.40 hourly. The increase is one of the largest such hikes in recent years, and results from the inflation rate.

“This increase is the direct result of the rapidly rising cost of living facing Oregon workers,” said Labor Commissioner Brad Avakian. The Commissioner added, “By helping workers and their families preserve their purchasing power in difficult times, our strong minimum wage law also benefits our local economies, where workers spend most of their paychecks.”

Some question the wisdom of a large increase during recessionary times. The law, however, was (more…)