Oregon Minimum Wage: Rate, Tipped Wage, and Local Rules

Oregon does not have a single statewide minimum wage. Instead, it uses a three-tier regional system set by ORS 653.025, with separate rates for the Portland metro area, a "standard" rate for most counties, and a lower "non-urban" rate for 18 rural counties. As of 2026, those rates are roughly in the mid-to-upper $15 to low-$16 range for the Portland metro tier and around $15 for the standard tier, all of which sit far above the federal floor of $7.25 per hour. Critically, Oregon allows no tip credit at all: every tipped worker must be paid the full applicable minimum wage in cash, before tips. Because Oregon's rates change every July 1 based on inflation, you should always confirm the current figure with the Oregon Bureau of Labor and Industries (BOLI) before relying on a specific number.

How Oregon's Three-Tier System Works

In 2016, Oregon passed Senate Bill 1532, which replaced a single statewide minimum wage with three geographic tiers. The idea was to account for the large differences in cost of living between the Portland area and rural Oregon. The three tiers are:

• Portland metro (urban growth boundary) — the highest rate, covering employers located inside the Metro urban growth boundary, which includes parts of Multnomah, Washington, and Clackamas counties.
• Standard counties — the middle rate, applying to most of the state's more populated counties that are outside the Portland metro boundary.
• Non-urban counties — the lowest of the three rates, covering 18 specifically named rural counties such as Malheur, Lake, Harney, Wheeler, Sherman, Gilliam, Grant, Baker, Morrow, Umatilla, Union, Wallowa, Coos, Curry, Douglas, Klamath, Crook, and Jefferson.

Which rate applies depends on where the work is physically performed, not where the company is headquartered. If you work in multiple regions, your employer must either pay you the rate for each region where you work or pay the higher applicable rate. The Portland metro tier is typically about $1.25 higher than the standard tier, and the non-urban tier is typically about $1.00 lower than the standard tier.

Annual Inflation Indexing Every July 1

Oregon's scheduled step increases ended in 2022. Since July 1, 2023, the minimum wage in all three regions adjusts annually based on the Consumer Price Index (CPI-U, U.S. city average). BOLI calculates the new figures and publishes them in the spring, and the new rates take effect every July 1 (not January 1 like many other states). This means Oregon's minimum wage almost always rises a little each year to keep pace with inflation.

Because the number changes annually, any specific dollar figure you see can quickly go stale. As of 2026, the rates are approximately in the range described above, but the exact current figures should be verified directly on the BOLI website. BOLI maintains an official minimum wage page and a chart showing the rate for each region and each effective date.

No Tip Credit: Tipped Workers Get the Full Wage

This is one of the most important differences between Oregon law and federal law. Under the federal Fair Labor Standards Act (FLSA), an employer can take a "tip credit" and pay tipped employees a cash wage as low as $2.13 per hour, as long as tips bring the worker up to the federal $7.25 minimum. Many states follow this model.

Oregon does not. Oregon is one of a small group of states that prohibit any tip credit. Servers, bartenders, baristas, delivery drivers, and other tipped employees in Oregon must receive the full applicable regional minimum wage in cash, and any tips they earn are on top of that wage. An employer cannot count tips toward meeting the minimum wage obligation.

Tips remain the property of the employee. Employers may operate valid tip pools among employees who customarily receive tips, but managers, supervisors, and owners generally cannot keep employees' tips. If your employer is paying you a reduced "tipped" cash wage and counting your tips to reach minimum wage, that practice violates Oregon law.

Local Minimum Wages

Oregon's tiered structure is set at the state level, and Oregon law preempts cities and counties from setting their own separate minimum wage ordinances. In practice, this means there is no "Portland minimum wage" ordinance or "Eugene minimum wage" ordinance the way some other states allow. The Portland metro rate is part of the state system, not a city law. So unlike states such as California or Washington, where individual cities set higher local minimums, Oregon workers only need to identify which of the three state regional tiers applies to their worksite.

Common Exceptions and Special Situations

A few categories of workers are treated differently:

• Overtime. Oregon follows the federal 40-hour weekly standard for most workers: hours over 40 in a workweek are paid at 1.5 times the regular rate. Oregon also has special daily overtime rules for certain manufacturing and canning operations.
• Agricultural and domestic workers. These workers have historically had different coverage, though Oregon has been phasing in overtime protections for farmworkers. Minimum wage still generally applies.
• Student and learner exceptions. Limited sub-minimum rates can apply in narrow circumstances, but these are tightly regulated.
• Independent contractors. Genuinely independent contractors are not covered, but misclassification is common. Being labeled a "contractor" does not by itself remove your minimum wage rights if you function as an employee.

How to Enforce Your Right to Minimum Wage

If you believe you have been paid less than Oregon's applicable minimum wage, or that your employer took an unlawful tip credit, you have several options:

• Document everything. Keep copies of pay stubs, time records, schedules, and tip records. Note the dates and the region where you worked.
• Raise it internally first if safe. Sometimes underpayment is a payroll error that can be corrected quickly.
• File a wage claim with BOLI. The Oregon Bureau of Labor and Industries Wage and Hour Division investigates unpaid wage and minimum wage complaints and can order employers to pay what they owe.
• Consider a private claim. Oregon law allows employees to recover unpaid wages, and penalty wages may apply when an employer willfully fails to pay. An employment attorney can advise on deadlines and remedies.

Retaliation against workers who assert wage rights is illegal under Oregon law. An employer cannot fire, demote, or punish you for filing a wage claim or complaining about underpayment.

Where to Confirm the Current Rate

The authoritative source for Oregon's current minimum wage is the Oregon Bureau of Labor and Industries (BOLI). BOLI publishes the official rate for each of the three regions, the effective dates, and guidance on which counties fall into each tier. Because the rate adjusts every July 1 based on inflation, treat any number you find elsewhere as a starting point and verify it against BOLI before you rely on it for payroll, a wage claim, or a job decision. For federal questions, the U.S. Department of Labor administers the FLSA $7.25 baseline, but Oregon's higher rates control for work performed in Oregon.

Official Oregon Sources

This page is based on Oregon employment law. Rules and figures change — verify the current details directly with the official Oregon sources below. This is general legal information, not legal advice.

• Oregon Bureau of Labor and Industries (BOLI) — official Oregon agency.
• BOLI: Wage and Hour Complaint (For Workers)
• Oregon Revised Statutes Chapter 652 — Hours; Wages; Wage Claims; Records

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Oregon state law.