Minimum Wage

The federal minimum wage was established in 1938, as part of the Fair Labor Standards Act (FLSA), to ensure that all work would be fairly rewarded and that regular employment would provide a decent quality of life. Congress makes periodic amendments to the FLSA to increase the federal minimum wage; however, since the 1960s, Congress has adjusted the federal minimum wage infrequently, enacting raises that have never been adequate to undo the erosion in the minimum wage’s value caused by inflation. This decline in purchasing power means low-wage workers have to work longer hours just to achieve the standard of living that was considered the bare minimum almost half a century ago. The decline in the value of the minimum wage has contributed to wage stagnation, and is directly responsible for widening inequality between low- and middle-wage workers.

In light of Congressional inaction, many states, cities, and counties have enacted their own higher minimum wages, with EARN groups providing the key research and analysis evaluating proposed minimum wage increases. In doing so, they are taking steps to help workers afford their basic needs, bring them closer to the middle class, and ensure that even the lowest-paid workers in their jurisdictions will benefit from broader improvements in wages and productivity.

As of 2017, the federal minimum wage was worth 25 percent less than it was in 1968.

There are 7 states that have no minimum-wage law or a minimum wage below the federal minimum wage. The federal minimum wage applies in all of these states.

Publications

Data for the People

  • December 31, 2022
  • Tyler Mac Innis, Janet Bauer, Nhi Nguyen

All Oregonians deserve to live in dignity — to enjoy economic security and the possibility to thrive. This is doable. Oregon, after all, is a prosperous place, with enough resources for everyone to live well.

But for a vast number of Oregonians today, economic security feels like an impossible dream. At a time when the income of the richest Oregonians has reached record highs, many low-paid Oregonians can’t afford basic necessities such as food, housing, and health care. Economic insecurity afflicts Oregonians of all races. As a result of an economy designed to benefit the white and wealthy, it is especially pronounced among Black, Indigenous and other Oregonians of color.

Data for the People provides the latest publicly-available data on the economic well-being of Oregonians. To better reflect the realities of particular communities, wherever possible we break down data by race and ethnicity using Race, Ethnicity, Language, and Disability (REAL-D) categories developed by the Oregon Health Authority (OHA). For more information about this process, as well as data sources used throughout, see our detailed methodology.

The data make clear the need for Oregon to create an economy that is more equitable in its prosperity. OCPP’s Action Plan for the People lays out a policy roadmap to shift the economic system to benefit all Oregonians, not just the wealthy few. We invite you to explore this data set.