The Oregonians who earn minimum wage, many of whom are students, will see a bump up in pay to $9.75 an hour this month — increasing from $9.25 on July 1. This is just the first of a series of increases that will continue until 2022.
Oregon employers have had to adjust to the new laws, which were signed by the Oregon Legislature in March. The law categorizes Oregon into three separate regions, each with its own specific increases and minimum wages. Oregon is the first state in the U.S. to use this kind of tiered system.
Eugene is in the “Standard Counties” region, where minimum wage will cap at $13.50 in 2022. Other rural areas will see a minimum wage of $12.50, with the highest region within the Portland Metro Area, where the minimum wage will be $14.75 by the same year.
Some local businesses in Eugene have been planning for these changes. Papa’s Pizza, a Eugene-based business, is one of them. Their workforce is made up of about 60 or 70 students at their two locations, according to manager Brandon Moniz.
“Minimum wages have gone up so rapidly, that’s it’s basically caught up with our own increases,” Moniz said. Papa’s Pizza has proactively increased employee wages.
According to Moniz, Papa’s Pizza hasn’t had to stop their hiring process due to the increases. Moniz doesn’t expect to see any change in the number of staff.
Papa’s pizza has had to raise the prices of their buffet, salads, and wine, as well as limit employee hours, according to Jacob Heilbronner, another manager at Papa’s Pizza.
Heilbronner also said that the differences in pay between employees will be wiped out; new employees will now earn the same as employees who have works at Papa’s Pizza for longer, and who have earned raises.
“It’s unfair for people who have worked here longer to have to get paid the same as people who just walk in the door,” said Heilbronner.
Other organizations, like the Eugene Chamber of Commerce, initially voiced concern over the speed in which the increases would take place.
Brittany Quick-Warner, director of business advocacy for the Eugene Chamber of Commerce said the small, incremental increases would be easier on businesses than one large increase.
The highest minimum wage increases in the nation belong to New York State and California, which will be $15 an hour by the end of 2022.
The increases come a time when tuition raises have caused a concern for many students. Fall term will see a 4.8 percent increase in tuition rates.
Kathryn Fortner, a UO business student who works at the Duck Store earning minimum wage, will benefit from the increases. Along with the tuition hikes, Fortner thinks the result will be inflation. “Everything will start costing more,” she said.
When asked what she will do with the extra 50 cents an hour, Fortner says she will “put it towards rent, food, and I’ll stop asking my parents for so much money.”