The minimum wage increased by 75 cents in Eugene on July 1, affecting workers across the city. This change also impacts student workers, especially those who work on campus. At UO, many jobs such as dining service workers and office assistants are paid minimum wage. However, the bump in pay to $13.50 an hour is still not enough for many college students as they balance paying for college, rent, and groceries.
In 2016, the Oregon Legislature enacted Senate Bill 1532, which established a set of annual increases in the statewide minimum wage through 2022. It established three different sets of minimum wages –– standard, Portland metro, and non-urban –– according to the act agreed upon by the legislature. Eugene falls under the standard wage. Until July 1, 2017, the minimum wage in Eugene was under $10 per hour. It wasn’t until July 1, 2020 that it was increased to $12 per hour.
UO pays its student workers on a monthly basis, with pay periods beginning and ending at different times of the month depending on the program.
This payment schedule can be difficult for many. Camila Macias, a rising junior with a major in folklore and public culture, said that getting paid on a monthly basis rather than twice a month makes it more difficult for them to budget their money and to pay bills on time. If the paycheck is even a couple of days late, it could mean paying rent late and dealing with possible fees. During the school year, Macias said that all of their income went to paying for rent. They work as an office assistant for LGBT Education and Support Services.
Rent is one of the biggest costs for many students, which is why they often try to minimize what they’re paying. Wil Tayco, a rising sophomore with a major in folklore and public culture, is currently working as a conference ambassador for UO Housing Conference Services. Tayco was interested in the job for its potential to save costs, at an hourly pay rate of $13.25. After the minimum wage hike, Tayco anticipates an hourly wage of $13.75.
“I get room and board with my current position, which is basically the only reason I took it. I’m able to save up all the money I earn this summer and save up for a few months of rent and groceries and stuff like that,” Tayco said. “I’m fortunate enough to be in the situation where I can save all this money this summer and get room and board and not have to pay for that [during the summer]. But otherwise if I didn’t have this circumstance, I would be working at least 30 hours a week in the fall.”
Tayco is from Utah where the minimum wage is $7.25 per hour, the same as the national minimum wage. By staying in Oregon to work during the summer, they can make nearly double what they would in Utah.
Macias is from California, where they will work this summer as a cashier for $15.90 per hour. That’s only $3.15 per hour more than their job during the school year, but amounts to a difference of nearly $400 in their monthly paycheck. With this stark of a difference, the effects of low wages are easy to see.
However, this year’s increase in pay is “some, but definitely not enough,” Macias said. “I won’t have to spend my entire paycheck on rent alone, but will still be spending the majority of it on that.”
“One of the big reasons why I am saving so much this summer is because $1000 per month could get me my rent and my groceries for the month, but I wouldn’t be able to eat out at all, I wouldn’t be able to go do things with friends, I wouldn’t be able to spend money if there was something I absolutely needed like going to the doctor,” Tayco said.
Starting next year, increases in minimum wage will be determined by the Consumer Price Index, which evaluates the cost of living and keeps up with inflation. CPI is determined by the United States Bureau of Labor Statistics. However, this change will not occur on a national scale. The federal minimum wage is increased only when Congress passes a bill and the president signs it into law, according to the US Department of Labor.
Even with the slight increase in Oregon’s minimum wage, many college students are still feeling the effects of high costs.