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Oregon’s minimum wage will increase to $9.10 in 2014

Oregon Labor and Industries Commissioner Brad Avakian announced on September 17 that the state’s minimum wage will increase to $9.10 on January 1, 2014, providing a $0.15 per hour raise for 98,000 minimum wage workers.

State law requires that an adjustment be made to the minimum wage each year no later than September 30 based on any increase in the U.S. City Average Consumer Price Index (CPI) for All Urban Consumers for All Items, from August of the prior year to August of the year in which the calculation is made. The amount must be rounded to the nearest of five cents.

Currently, the minimum wage in Oregon is $8.95. Based on an increase in the CPI of 1.52 percent from August 2012 to August 2013, the calculation used for determining the minimum wage rate for 2014 is: $8.95 X .0152 = $.1360, rounded to $.15.

The adjustment means that directly-affected employees working 30 hours a week will have $234 more to spend on goods in 2014. The increase is expected to generate more than $20 million in new consumer spending for Oregon’s economy.

Earlier this year, Commissioner Avakian testified before the U.S. Senate’s Health, Education, Labor and Pensions (HELP) Committee about Oregon’s successful experience indexing its minimum wage to provide businesses with a high level of predictability for payroll expenses over time, avoiding major spikes.

“Oregon can build a stronger economy by making sure that workers have the purchasing power they need to keep pace with the rising cost of everyday goods,” said Avakian. “With this increase in Oregon’s wage floor, nearly 100,000 Oregonians will earn more money for groceries, school supplies, gas and other household essentials. That’s good not just for individual workers, but for our state’s economy.”