Effective January 1, 2004, Oregon's minimum wage will increase to $7.05 per hour. In December 2003, employers will be receiving revised posters from the Bureau of Labor & Industries ("BOLI") reflecting the new minimum wage.
In November of 2002, Oregon voters passed Ballot Measure 25, which requires the BOLI Commissioner to annually adjust the minimum wage for inflation, based on a rise in the Consumer Price Index (CPI). The annual adjustment is calculated every September, rounded to the nearest five cents, and becomes effective the following January. The United States Bureau of Labor and Statistics publishes the CPI, a measure of the average change in prices over time in a fixed "market basket" of goods and services, such as food, shelter, medical care, transportation fares and other goods and services people purchase for day-to-day living.
Prior to the passage of Ballot Measure 25, Oregon's minimum wage had not increased since 1999. The federal minimum wage is $5.15 and has not increased since 1997.
The State of Washington also annually adjusts its minimum wage based on the CPI. According to the Washington Department of Labor and Industries, the calculations are completed in September, but announced in November.
Employers that do not comply with the law run the risk of being audited by BOLI or the Department of Labor and may have to pay fines or back wages. They also run the risk of their employees bringing a wage suit for not paying them in accordance with the law. Fines and penalties may be at a premium, as any violation could be found to be intentional, given that the wage increase has been well-publicized. If you need more information on Oregon's minimum wage increase and the steps your business can take to ensure compliance with the law, be sure to consult your legal counsel.