Proposed by initiative petition to be voted on at the General Election, November 5, 1996.
RESULT OF "YES" VOTE: "Yes" vote increases state's minimum wage to $6.50 per hour over three year period.
RESULT OF "NO" VOTE: "No" vote leaves state's minimum wage at current level of $4.75 per hour.
SUMMARY: This measure amends the state's hourly minimum wage. The current minimum wage is $4.75 per hour and has been in effect since January 1, 1991. This measure would increase the minimum wage to $5.50 per hour for calendar year 1997, to $6.00 per hour for calendar year 1998, and to $6.50 per hour for calendar year 1999 and the years following.
ESTIMATE OF FINANCIAL IMPACT: Direct state expenditures are estimated to increase by $26.4 million when fully implemented in 1999 to bring state government employees and state contract service providers currently paid at minimum wage to the new level.
Direct state expenditures are estimated to decrease by at least $3.3 million annually due to reduced public assistance eligibility.
Direct state tax revenues are estimated to increase $4.8 million a year, due to both increased personal income taxes and decreased corporate income taxes by increasing wages of workers paid at current minimum wage.
Direct local government expenditures are estimated to increase $5 million when the measure is fully implemented to bring local government employees and local contract service providers currently paid at minimum wage to the new level.
Other expenditure and revenue changes could not be estimated due to insufficient data.
Preamble: WHEREAS, ORS 653.015 states the policy of the State of Oregon is to establish minimum wage standards for workers at levels consistent with their health, efficiency and general well-being, and
WHEREAS, Oregon is no longer meeting these standards with the current minimum wage of $4.75 an hour - or approximately $800 a month for a full-time year-around worker, and
WHEREAS, adjusted for inflation, the purchasing power of the minimum wage has fallen by 70 cents an hour since its last increase in 1991,
THEREFORE THE PEOPLE FIND, that to meet the policy objectives set forth in ORS 653.015, and to increase economic independence, to reduce the need for public benefits, to enable families to raise their children in dignity, to increase meaningful employment, to increase the purchasing power of low-income citizens, and thereby expand the tax base, Oregon law is revised to create a more livable minimum wage, as follows:
SECTION 1. ORS 653.025 is amended to read:
653.025. Except as provided by ORS 652.020 and the rules of the Commissioner of the Bureau of Labor 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 the period of September 1, 1989 to December 31, 1989, $3.85.
(2) For calendar year 1990, $4.25
(3) For calendar years after December 31, 1990, $4.75.]
(1) For calendar year 1997, $5.50.
(2) For calendar year 1998, $6.00.
(3) For calendar years after December 31, 1998, $6.50.
If any part of this statute is held to be unconstitutional under the federal or state 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.