Thousands of people working minimum wage jobs in Oregon and Washington will be getting a pay raise as of the first of the year.

Bob Estabrook with the Oregon Bureau of Labor and Industry..."annual increase in Oregon's minimum wage is tied to the increase in the Consumer Price Index. So there is going to be a 15 cent per hour increase in the minimum wage."

The Oregon minimum wage goes from 8-80 and hour to 8-95. The Washington minimum goes from 9-04 to 9-19 an hour.

Estabrook says - minimum wage is right around the poverty level...but adds the hike can also hurt some businesses. "Industries where margins are much thinner, such as the restaurant industry."

Both Oregon and Washington do have some exceptions to the minimum wage requirment.