The federal minimum wage is the default wage in all states for most occupations that are involved in interstate commerce. A state may choose to set a minimum wage above or below the federal rate, but minimum wage earners receive the higher of the two amounts. States also may set a different minimum wage rate for specific occupations or employee classes not covered by the federal rate. The current federal minimum wage, set in 2009, is $7.25 per hour.

In 2002, Oregon voters approved a ballot measure to increase the state minimum wage to $6.90, with annual increases tied to inflation. Due to the inflation adjustments, the minimum wage had increased to $9.25 by January 2016. The legislature moved away from a statewide minimum wage in 2016 and instead set regional minimum wages, phasing in increases over a seven-year period with increases occurring on July 1 of each year, as shown in the chart below.

Following 2022, the minimum wages for urban counties will continue to grow according to annual adjustments in the Consumer Price Index. The Portland Metro Urban Growth Boundary minimum will be $1.25 higher than the urban county rate, and the nonurban counties will be $1.00 lower than the rate of urban counties.

Exceptions to the minimum wage law are listed in ORS 653.020. Examples include professional salaried employees and employees in specific occupations, such as taxicab operators, in-home care providers, volunteer firefighters, and some agricultural workers. Oregon, along with six other states, requires the same minimum wage rate for tipped and nontipped workers.11 The remaining states allow a “tip credit” against the minimum hourly rate, meaning that employers may count a limited amount of the worker’s tips toward the minimum wage.

Some economists have argued against a high minimum wage, such as in Oregon, pointing out that it excludes less-skilled people from the marketplace and discourages employers from training new wages. They also point out the increase in self-check and kiosk-ordering in states with a high minimum wage.




--Staff Reports, with Legislative Policy and Research Office

Post Date: 2020-10-15 09:03:32

Last Update: 2020-10-14 20:44:52