A law increasing the minimum wage in the state of Oregon was recently signed. The law as described by Governor Kate Brown is the first of its kind in U.S. This bill will create a three-tiered minimum wage system in Oregon. The increase will be implementing this coming July, where the minimum wage in Portland and smaller cities will go up by 50 cents while in rural communities the increase will be 25 cents.
The increase is in compliance of the three-tiered minimum wage system which states: the base fare will increase to $9.75 per hour where the Portland metropolitan area will receive a higher minimum wage while the rural areas will receive a lower minimum wage of $9.50 per hour. Eighteen counties were identified as rural areas, it includes Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler.
The law seek to pave a path forward for working families to catch up and for business owners to have ample to time to plan for the increase. The minimum wage was determined based on the area of employment to address the needs of the rapidly growing urban powerhouse of Portland. Given this increase, divisions caused by economic, cultural and political differences will be resolved in order to aid the state’s struggling farming communities.
Oregon’s three-tiered system will be implemented within a six-year period. During this time the minimum wage in Portland will be raised to $14.75, smaller cities to $13.50 and rural areas to $12.50, from the current $9.25 hourly rate. Prior to Oregon’s increase states such as Massachusetts, California and Vermont already signed into law a state-wide increase of their minimum which is above $10. But, Oregon’s increase is by far the highest rate compared to other states, based on a six-year plan.
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