Despite a state economy that has yet to show improvement, Oregon businesses have received some welcome news from state agencies this fall that two key business costs – workers’ compensation and minimum wage – will hold steady for 2010. 

The Department of Consumer and Business Services has announced that workers’ compensation “pure” premium rates for Oregon employers will fall by 1.3 percent in 2010.  Cumulatively, this will save Oregon employers just over $18 million in workers’ compensation premiums next year.  Workers’ compensation premium rates have decreased each year since 2006, and have not increased since 1990.  Since the landmark 1990 workers’ comp reforms spearheaded by AOI and other groups, rates for Oregon employers have dropped over 60 percent, saving employers $17.4 billion in premium costs.

In another recent development, Labor Commissioner Brad Avakian announced that Oregon’s minimum wage rate will remain at $8.40 per hour in 2010.  Oregon’s minimum wage rate will hold steady for the first time since voters passed Measure 25 in 2002.  Due to passage of that ballot measure, Oregon law mandates that the state’s minimum wage rate increase every year in conjunction with the Portland/Metro Consumer Price Index (CPI).  However, the 2009 CPI actually dropped by 1.48 percent, but the law only allows for increases based on the CPI, leaving no option for a reduced wage when the CPI declines.