Oregon's minimum wage increase through three-tiered system based on geography was signed by U.S. Democratic Governor Kate Brown on Wednesday. The new law would set the minimum wage to nearly $15 an hour over the six years that would make Oregon workers the highest paid among all states in the U.S.
Oregon now joins the bandwagon of other 14 states that have increased minimum wage in a span of two years. Oregon's minimum wage law would mean that Portland workers will be receiving $14.75 hourly by 2022. Employees in smaller cities and towns will get $13.50 an hour in cities such as Salem and Eugene and people in rural areas will be get $12.50 an hour, CBS News reports. The new law makes Oregon a trailblazer in the controversial debate over minimum wage as the nation has been challenged by great economic slump in the previous years.
"I started this conversation last fall, bringing stakeholders together to craft a workable proposal, one that gives working families the much-needed wage boost they need, and addresses challenges for businesses and rural economies presented by the two impending ballot measures," Brown said.
Currently, Oregon's minimum wage is set at $9.25 an hour, which is higher by $2 in other states. According to Reuters, workers in Oregon will receive the new wage rate in Jan. 2017. People inside Portland will be getting an increase of 15% from their present rate. It would mean that their salary will be $11.79 an hour and $10.25 outside Portland. Oregon follows the move of California, Massachusetts, and Vermont, the states that recently boosted the minimum wage most recently.
"The costs of essentials such as food, child care, and rent are rising so fast that wages can't keep up," Brown said in a statement while announcing the plan, Oregon Live cites. "Many Oregonians working full-time can't make ends meet, and that's not right."
Oregon's minimum wage hike is seen as a huge assistance for low-paid workers in the state. Meanwhile, critics believe that the new law could harm businesses that are still trying to get on track after the nation's recession.
