Human Resource Blog

Oregon Minimum Wage

The minimum wage in Oregon is changing on January 1, 2008.  How much is the new minimum wage?

The Oregon minimum wage will increase on January 1, 2008.  The new minimum wage will be $7.95 per hour.  This is a 15 cent change from the previous rate of $7.80 per hour.  This increase will make Oregon the fourth highest minimum wage on January 1, 2008.  The states that are higher include Washington ($8.07), Massachusetts ($8.00) and California ($8.00). 

The increase of the minimum wage in Oregon is controlled by the consumer price index otherwise known as the CPI.  A CPI is multiplied by the current minimum wage and then rounded up to the next nickel.  This cost of living increase was called Ballot Measure 25 and set the standard for 12 states that include cost of living increases to compute the minimum wage.  Employees that earn tips in the state of Oregon are paid the same wage as the non-tipped employees.  Oregon does not pay a tip credit like Arizona, Delaware, Ohio or Connecticut. 

The standard work week in Oregon is 40 hours per week.  Workers who work more than 40 hours per week are entitled to time in a half which would be $11.93 per hour. There are a few other states that are increasing their minimum wage including Ohio, Kentucky, Florida, Iowa and New Mexico on January 1, 2008.  Ohio will increase its minimum wage to $7.00 per hour.  Iowa is increasing $1.05 per hour over its previous minimum wage making the new minimum wage $7.25 per hour.   

Oregon’s minimum wage will be $1.40 higher than the federal minimum wage on January 1, 2008. The federal minimum wage is scheduled to change on July 24, 2008.  It will increase to $6.55.  On July 24, 2009 the federal minimum wage will increase one more time to $7.25 per hour. 

Employers who live in Oregon will need to update their minimum wage posters at the beginning of the year.  Minimum wage posters are available at www.laborlawcenter.com.