minimum wage

Earlier this month, the Governor of Oregon signed into law a novel tiered minimum wage bill. Gov. Brown signs ‘monumental’ Oregon minimum wage bill:

Gov. Kate Brown signed a bill enacting a double-digit increase in the state’s minimum wage, a boost that could give the state the highest minimum wage in the nation by 2022.

Shortly thereafter, President Barack Obama released a statement commending Brown and the Legislature while criticizing Congress for inaction on raising the federal minimum wage.

Brown told reporters at the bill signing ceremony that increasing the minimum wage was her top priority for the 2016 legislative session. The law takes effect July 1, with a 50-cent increase in the statewide minimum wage.

Passing the minimum wage increase was no small feat. Lobbyists for business and labor groups were firmly camped on opposite sides of the wage debate. The labor groups filed ballot measures to raise the minimum wage. That effectively forced the Legislature to come up with its own solution before a costly and potentially politically damaging ballot measure fight ensued.

The compromise developed between legislators and business and labor lobbyists is novel because it creates three minimum wage tiers for the state. Rural areas will see a wage increase from the current $9.25 to $12.50 by 2022. Much of the state will use a “base wage,” which will increase to $13.50 by 2022. The third tier is in the Portland area, which will increase to $14.75 by 2022.  After 2022, the base wage will be adjusted for inflation, with the Portland wage tied $1.25 above and the rural wage $1 below the base wage.

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In 2006, Arizona voters approved Proposition 202, the Arizona Minimum Wage Act, by a citizens initiative which set a higher minimum wage and adopted an automatic annual  cost of living adjustment.

Proposition 202 also gave local governments the right to enact their own higher minimum wage and other benefits of employment.

A.R.S.§ 23-362, Paragraph I provides:

I. THE LEGISLATURE MAY BY STATUTE RAISE THE MINIMUM WAGE ESTABLISHED UNDER THIS ARTICLE, EXTEND COVERAGE, OR INCREASE PENALTIES. A COUNTY, CITY, OR TOWN MAY BY ORDINANCE REGULATE MINIMUM WAGES AND BENEFITS WITHIN ITS GEOGRAPHIC BOUNDARIES BUT MAY NOT PROVIDE FOR A MINIMUM WAGE LOWER THAN THAT PRESCRIBED IN THIS ARTICLE. STATE AGENCIES, COUNTIES, CITIES, TOWNS AND OTHER POLITICAL SUBDIVISIONS OF THE STATE MAY CONSIDER VIOLATIONS OF THIS ARTICLE IN DETERMINING WHETHER EMPLOYERS MAY RECEIVE OR RENEW PUBLIC CONTRACTS, FINANCIAL ASSISTANCE OR LICENSES. THIS ARTICLE SHALL BE LIBERALLY CONSTRUED IN FAVOR OF ITS PURPOSES AND SHALL NOT LIMIT THE AUTHORITY OF THE LEGISLATURE OR ANY OTHER BODY TO ADOPT ANY LAW OR POLICY THAT REQUIRES PAYMENT OF HIGHER OR SUPPLEMENTAL WAGES OR BENEFITS, OR THAT EXTENDS SUCH PROTECTIONS TO EMPLOYERS OR EMPLOYEES NOT COVERED BY THIS ARTICLE. (emphasis added)

Last July, the Court ruled that Arizona cities can raise minimum wage:

Arizona cities have the right to raise their own minimum wages, according to a court judgment state officials agreed to Monday.

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