Oregon's minimum wage will increase to $14.75 in 2022, $13.50 in smaller cities and $12.50 in other rural areas. On Wednesday, Governor Kate Brown signed Senate Bill 1532 into a law. Oregon becomes the first state to do this in the country through a three-tiered system.
President Barack Obama commended Brown for the trailblazing legislation to increase Oregon's minimum wage. At present, the federal minimum wage is at $7.25. The U.S. president encouraged the congress to follow Oregon for initiating action to raise the minimum wage. He also said that at least the District of Columbia and 18 states had pursued to increase the federal minimum wage three years ago. Oregon is not the only state to increase the minimum pay above $10. It follows states such as Massachusetts, California and Vermont, according to The Guardian.
"I'm proud to sign into law my top priority of the 2016 Legislative session - raising the minimum wage," Governor Kate Brown said in a statement. She said the new law "is a path forward - so working families can catch up, and businesses have time to plan for the increase.
Meanwhile, Oregon's minimum wage has been challenged by several activists around the country. Some opponents claimed that the law is too slow to make a substantial change in the system. A group called "Oregonians for $15" headed by campaign manager Justin Norton-Kertson said that they are still weighing if they will go ahead with their own ballot measure that would increase minimum salary to $15 all across the nation, The Wall Street Journal claims.
"It is too low, and it is too slow; it leaves rural workers behind at a lower wage that is really not enough," Kertson said.
At present, Oregon's minimum wage is $9.25. Through the three-tiered system, the workers' pay would depend on where the location of their work. As reported by Business Insider, the system aims to seal the gap between the rural farming communities and the urban Portland. These two ends have been divided politically, economically and culturally for a long time. The first upsurge in salaries would take effect in July.
The first increase would set additional of 50 cents in Portland and small cities and 25 cents in rural areas. Apart from the critics, business groups have also expressed their dismay on Oregon's minimum wage increase. They said it would only bring more problems and uncertainties.
