The Oregon minimum wage will remain at $8.40 in 2010, according to Labor Commissioner Brad Avakian. The Commissioner recently announced that due to a decline of 1.48% in the cost of living, the state minimum wage would be unchanged.
This is the first time since 2002 that the Oregon minimum wage will not have an annual cost-of-living increase.
“Under the circumstances, a steady minimum wage is good for Oregon’s businesses and working people,” Commissioner Avakian said. He pointed out that with the economy struggling, this would allow minimum wage employees to maintain their purchasing power and contribute to recovery. Avakian added, “At the same time, employers who are in difficult financial situations can breathe a little easier because there labor costs will remain constant.”
At $8.40 per hour, the Oregon minimum wage is still the second highest in the nation. It is exceeded only by the Washington minimum wage of $8.55 per hour. The Vermont minimum wage is third at $8.07 per hour. Illinois, Massachusetts and California are in a three-way tie for fourth place at $8.00 per hour, although that will change on July 1, 2010 when the Illinois minimum wage increases to $8.25 per hour.
Oregon is one of ten states with statutes that require annual adjustments to the state minimum wage based on the CPI or Consumer Price Index for the 12 months ending August 31 each year. The other states include Washington, Vermont, Ohio, Nevada, Montana, Missouri, Florida and Arizona. Most of those states are not planning any change in the minimum wage for 2010.
The CPI, published quarterly by the federal Bureau of Labor Statistics, measures the average change in prices over time for a fixed package or “market basket” of goods and services, such as medical care, food, shelter, transportation, etc.
In Colorado, however, the state minimum wage will decrease by 4 cents in 2010, from $7.28 to $7.24 per hour. This is the first time in U.S. history that a state minimum wage has been reduced.
