Oregon Public Broadcasting

A possible increase in the nation's highest minimum wage is becoming a hot potato in Olympia.

Thursday, Washington state was to announce its minimum wage for 2011 -- as Oregon did last week. 

But labor groups and Washington's Attorney General are sparring over the pay rate.

Voters in Washington and Oregon decided years ago to link the minimum wage to inflation. 

But what about deflation? 

During the first year of the recession, the U.S. consumer price index went down.  State officials decided not to lower the base wage by a like amount. 

Now the question is when to resume annual increases.

Washington's Republican attorney general Rob McKenna says to wait until the cost of living catches up to pre-recession levels.  But Washington State Labor Council President Rick Bender says inflation has ticked up slightly again so the state's minimum wage should rise to $8.67 per hour in January.

Rick Bender: "This 12 cent increase, even though itís not a big increase, every little bit helps for over 300,000 workers here in the state of Washington."

Washington's Department of Labor and Industries emailed a statement that says the agency and the Governor want two more weeks "to consider the different legal positions"on the minimum wage.

The Consumer Price Index went up a little more than one percent over the last year. Last week, Oregon's labor commissioner announced that state's minimum wage will rise in January from $8.40 an hour, to $8.50.

Online:

Washington Attorney General's opinion on annual adjustment of minimum wage

Washington State Labor Council