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News / Business / Clark County Business

Oregon’s wage hike could be felt locally

Economist: Border counties may try to stay competitive

By Lauren Dake, Columbian Political Writer
Published: March 3, 2016, 5:47pm

In his State of the State address in January, Gov. Jay Inslee championed raising the state’s minimum wage, using what’s become a hallmark line for the cause: “If you work 40 hours a week, you deserve a wage that puts a roof over your head and food on the table.”

Earlier this week, across the river, Oregon’s Gov. Kate Brown signed the nation’s highest statewide minimum wage rate into law. Oregon will implement a unique tiered approach that will raise the minimum to $14.75 in the Portland metro area, $13.50 in midsize counties and $12.50 for rural areas over a six-year period.

Despite Inslee’s push, efforts in the Washington Legislature to increase the minimum wage stalled this session. But the effects of a higher minimum wage across the Columbia could eventually be felt locally.

Scott Bailey, Southwest Washington regional economist with the Employment Security Department, said border counties usually adjust their wages upwards to remain competitive.

When Spokane had a higher minimum wage than neighboring Coeur d’ Alene, in Idaho, the fast-food restaurants in Idaho eventually raised their wages to compete, he said.

“You (will) see some pressure in jobs closer to the southern part of the county,” Bailey said. “Not so much in the northern part.”

But any impact, Bailey said, would take a while to be felt.

Oregon’s minimum wage hike will be phased in, and Washington employees in Oregon have to pay that state’s income tax.

“So the net impact on your paycheck might not be very much at first,” Bailey said.

Inslee said he remains committed to raising the wage in Washington.

On Thursday, the governor’s spokeswoman confirmed Inslee is continuing conversations with lawmakers who want to find a way to move forward legislatively.

Supporters of increasing the pay rate have also started gathering signatures to put a voter initiative on the November ballot.

Washington’s current minimum wage is $9.47 an hour, one of the nation’s highest. Oregon’s current minimum wage is $9.25.

Several Republicans have raised concerns that a hike in the minimum wage would cause small business owners to go out of business. One legislator introduced a measure this session that would have prohibited cities from setting their own wages.

Initial results from Seattle’s decision to increase the wage to $15 an hour, which is being phased in, should be available this summer, according to Bailey.

Rep. Jim Moeller, D-Vancouver, who pushed a measure to raise the minimum wage in the previous legislative session, said eventually the state will join Oregon.

People can’t afford a home or food, he said, “with the minimum wage as it is.”

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Columbian Political Writer