Dive Brief:
- Oregon soon will pass Massachusetts as top ranking state for minimum wage, according to the Associated Press.
- Oregon lawmakers last week approved landmark legislation that uses a "tiered" system based on geography. Gov. Kate Brown is expected to sign the law, which puts Oregon center stage regarding the national debate about minimum wage. The federal rate has remained unchanged at $7.25 since 2008.
- The AP reports that 14 other states have raised their rates in the last two years, with another dozen or so looking to follow suit 2016. The issue of wage inequality and falling middle-class incomes are sure to be part of the upcoming presidential election.
Dive Insight
According to the AP, Oregon's plan will implement gradual increases over six years, so that by 2022 the state's current $9.25 hourly minimum wage will be at $14.75 in metro Portland, $13.50 in smaller cities, and $12.50 in rural communities.
The article notes that the three-tiered regional system is unique, as it differs from states that have targeted wage hikes for government employees or specific industries, such as fast-food workers.
Paul Holvey, a Democrat from Eugene, OR, told the AP that Oregon has been an innovator with programs nationwide and was actually the first to even have a minimum wage. He says this law won't solve every problem, but expects it to make a "substantial dent" in income disparity.
