Related Stories Minimum Wage to Increase in January Increases in Federal Minimum Wage Considered in House and Senate Oregon's Minimum Wage Set to Rise 30 Cents
Minimum Wage Indexing
Background
In 1996, voters passed Measure 36. Measure 36 created a 3-tier increase of minimum wage over three years. $4.75 to $5.50, $5.50-$6.00, and $6.00-$6.50. Subsequently, the state suffered price inflation increased unemployment rates, and escalating hunger rates. In November 2002, voters passed Measure 25. ORA vehemently urged industry to fight the measure which narrowly passed by a margin just over one percent. Oregon has one of the highest unemployment rates in the nation and voters have once again, by passing Measure 25, decided to raise the minimum wage - this time, forever. During the 2003 Legislative session, HB 2624, which would have repealed the index of the minimum wage, passed the House 35-24 but died in the Senate. A similar bill, HB 2331, was introduced during the 2005 session but was never voted on..
Issue
Measure 25 increased Oregon's minimum wage to $6.90, effective January 1, 2003, and is indexed for an annual increase regardless of the state's economic health. Within the restaurant industry, the majority of employees considered minimum wage employees are in entry-level positions and those tipped employees who actually make - with tips - well over the minimum wage. None of the minimum wage proposals introduced by advocates in favor of accelerating the increases have even attempted to address either one of these realities.
ORA Position
The Oregon Restaurant Association (ORA) supports efforts to remove the annual indexing until the economy stabilizes and the state's unemployment rate declines from one of the highest in the nation. ORA is opposed to any increases in the minimum wage that do not take into consideration the effects on entry level or tipped employees.
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