Measure No. 25

Proposed by initiative petition to be voted on at the General Election, November 5, 2002.



RESULT OF "YES" VOTE: "Yes" vote increases the Oregon minimum wage to $6.90 in 2003; requires annual increases for inflation in future years, based on consumer price index.

RESULT OF "NO" VOTE: "No" vote rejects increasing Oregon minimum wage to $6.90 in 2003, requiring annual increases for inflation in future years based on consumer price index.

SUMMARY: Oregon's minimum wage is set by statute at $6.50 per hour. That minimum wage has applied since January 1999; current law does not adjust the minimum wage for inflation. This measure increases Oregon's minimum wage to $6.90 for calendar year 2003 and requires that minimum wage be increased for inflation in each subsequent year. Requires the Commissioner of the Bureau of Labor and Industries to calculate the adjustment for inflation each September, based on any increase in the U.S. City Average Consumer Price Index for All Urban Consumers for All Items that occurred during previous twelve months. Provides that recalculated minimum wage is rounded to nearest five cents and new minimum wage becomes effective January 1 of the following year. Other provisions.

ESTIMATE OF FINANCIAL IMPACT: The measure would require state expenditures of $1.19 million in 2003, $1.22 million in 2004, and $1.26 million in 2005. The measure would result in an increase in state revenues of $847,000 in 2003, $872,000 in 2004, and $898,000 in 2005. For years after 2005 the impact on state expenditures and revenues is expected to increase at the rate of inflation.

The measure would require local government expenditures of at least $350,000 in 2003, $360,500 in 2004, and $371,315 in 2005. There will be no impact on local government revenues.

Text of Measure

The Minimum Wage Inflation Adjustment Act

Be It Enacted By the People of the State of Oregon:

Section 1. ORS 653.025 is amended to read:

653.025. (1) Except as provided by ORS 652.020 and the rules of the Commissioner of the Bureau of Labor and Industries issued under ORS 653.030 and 653.261, for each hour of work time that the employee is gainfully employed, no employer shall employ or agree to employ any employee at wages computed at a rate lower than:

(1) For calendar year 1997, $5.50
(2) For calendar year 1998, $6.00
(3) For calendar years after December 31, 1998, and before January 1, 2003, $6.50.
(4) For calendar year 2003, $6.90.
(5) For calendar years after 2003, a rate adjusted for inflation.

(2) (a) The Oregon minimum wage shall be adjusted annually for inflation, as provided in subsection (2) (b) below.

      (b) No later than September 30 of each year, beginning in calendar year 2003, the commissioner shall calculate an adjustment of the wage amount specified in subsection (1) of this section based upon the increase (if any) from August of the preceding year to August of the year in which the calculation is made in the U.S. City Average Consumer Price Index for All Urban Consumers for All Items as prepared by the Bureau of Labor Statistics of the United States Department of Labor or its successor.

      (c) The wage amount established under this subsection shall:
(A) Be rounded to the nearest five cents; and
(B) Become effective as the new Oregon minimum wage, replacing the dollar figure specified in ORS 653.025(1), on January 1 of the following year.
Section 2. ORS 653.040 is amended to read:
653.40. The Commissioner of the Bureau of Labor and Industries, in addition to the commissioner's other powers, may:
(1) Investigate and ascertain the wages of persons employed in any occupation or place of employment in the state.
(2) Require from an employer statements, including sworn statements, with respect to wages, hours, names and addresses and such other information pertaining to the employer's employees or their employment as the commissioner considers necessary to carry out ORS 653.010 to 653.261.
(3) Make such rules as the commissioner considers appropriate to carry out the purposes of ORS 653.010 to 653.261, or necessary to prevent the circumvention or evasion of ORS 653.010 to 653.261 and to establish and safeguard the minimum wage rates [set] provided for under ORS 653.010 to 653.261.
If any part of this statute is held to be unconstitutional under the state or federal constitution, the remaining parts shall not be affected, and shall remain in full force and effect.

NOTE: Boldfaced type indicates new language; [brackets and italic] type indicates deletions or comments.

Explanatory Statement

Arguments in Favor

Arguments in Opposition

Statewide Measures

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