Oregon Minimum Wage 2026
⚠️Informational only — not legal or tax advice.
Last Updated: February 4, 2026
Last Reviewed: February 4, 2026
Applicable Period: 2026
Jurisdiction: State of Oregon, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter
Table of Contents
- Introduction
- Oregon Minimum Wage – 2026 Quick Reference
- Overview of Minimum Wage Law in Oregon
- Current Minimum Wage Rates in Oregon 2026
- Minimum Wage for Tipped Employees
- Local Minimum Wage Ordinances in Oregon
- Who Is Covered and Who Is Exempt
- Employer Obligations and Enforcement
- Oregon Minimum Wage vs Federal Law
- Minimum Wage Posting Requirements
- Frequently Asked Questions
- Information Verification Log
Introduction
The minimum wage in Oregon establishes the lowest hourly compensation that employers must legally provide to covered employees. For the period July 1, 2025, through June 30, 2026, Oregon maintains a three-tier minimum wage system with rates of $15.45 per hour in the Portland metro area, $14.20 per hour in standard counties, and $13.20 per hour in nonurban areas, based on regional cost-of-living differences.
Minimum wage regulations in Oregon operate under Oregon Revised Statutes § 653.025 alongside federal requirements established by the Fair Labor Standards Act (FLSA). When state minimum wage rates exceed the federal standard of $7.25 per hour, employers must comply with the higher applicable rate. Oregon does not allow tip credits, meaning employers cannot use employee tips to satisfy minimum wage requirements.
This page provides an authoritative overview of Oregon minimum wage law for 2026, including current rates, scheduled increases, tipped employee provisions, regional variations, coverage and exemptions, enforcement procedures, and compliance requirements. All information is compiled from official government sources.
| Oregon Minimum Wage — 2026 Quick Reference | |||
|---|---|---|---|
| Category | Rate | Effective Date | Official Source |
| Portland metro area minimum | $15.45/hour | July 1, 2025 | ORS 653.025(2) |
| Standard counties minimum | $14.20/hour | July 1, 2025 | ORS 653.025(1) |
| Nonurban counties minimum | $13.20/hour | July 1, 2025 | ORS 653.025(3) |
| Tipped minimum wage | No separate rate | N/A | ORS 653.035(3) |
| Tip credit allowed | No | N/A | ORS 653.035(3) |
| Next scheduled increase | July 1, 2026 | TBD by April 30, 2026 | ORS 653.025(5) |
| Rate adjustment mechanism | CPI-indexed | Annual | ORS 653.025(5) |
| Federal minimum wage | $7.25/hour | July 24, 2009 | FLSA |
| Local minimum wages | No (preempted) | N/A | ORS 653.017 |
Last verified: February 4, 2026 via Oregon Bureau of Labor and Industries website
Overview of Minimum Wage Law in Oregon
Legal Authority
Oregon minimum wage requirements are established under Oregon Revised Statutes Chapter 653, specifically ORS 653.025. The Oregon Bureau of Labor and Industries (BOLI) administers and enforces minimum wage regulations in Oregon. Oregon’s current three-tier minimum wage system was enacted in 2016 and implemented beginning July 1, 2016, with scheduled increases through June 30, 2023, followed by annual inflation adjustments.
Relationship to Federal Law
Under the Fair Labor Standards Act (FLSA), the federal minimum wage establishes a floor of $7.25 per hour for covered employers and employees. Oregon law operates independently of federal minimum wage standards but applies the principle that when both state and federal minimum wage laws apply, employers must pay whichever rate is higher.
Because Oregon’s minimum wages of $15.45, $14.20, and $13.20 significantly exceed the federal minimum, all covered employers in Oregon must comply with the applicable state rate based on their location.
Coverage Scope
Oregon minimum wage law applies to all employers regardless of size, with limited exceptions. Most hourly workers, including part-time employees and minors, are covered. Specific industries and employee types may be exempt under state law, as detailed in the exemptions section below. Employers not subject to state minimum wage requirements but covered by federal law must comply with FLSA standards.
Higher Rate Principle
The principle of “higher prevailing rate” requires employers to pay the highest applicable minimum wage—whether federal, state, or local. In Oregon, this means employers must identify and apply whichever minimum wage rate provides employees the highest hourly compensation based on the physical location where work is performed.
Current Minimum Wage Rates in Oregon 2026
Regional Minimum Wage System
Oregon operates a three-tier minimum wage system that recognizes cost-of-living differences across the state. The applicable rate depends on the physical location where employees perform work, not the employer’s principal place of business.
For the period July 1, 2025, through June 30, 2026:
Portland Metro Area: $15.45 per hour
Applies to: Employers located within the urban growth boundary of the Portland metropolitan service district (Metro) organized under ORS chapter 268, which includes portions of Clackamas, Multnomah, and Washington Counties
Coverage: All covered employers regardless of size
Authority: ORS 653.025(2)(h)
Standard Counties: $14.20 per hour
Applies to: All counties not classified as Portland metro or nonurban, including Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, and Yamhill Counties
Coverage: All covered employers regardless of size
Authority: ORS 653.025(1)(j)
Nonurban Counties: $13.20 per hour
Applies to: Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler Counties
Coverage: All covered employers regardless of size
Authority: ORS 653.025(3)(h) and ORS 653.026
These geographic variations recognize cost-of-living differences across Oregon. The higher rates in the Portland metropolitan area reflect elevated housing costs and living expenses compared to standard and rural regions. Employers must apply the rate corresponding to the physical location where employees perform work.
Determining Applicable Rate
Fixed Worksites: Employers with a fixed location pay the regional rate applicable to that location whenever an employee works on site at least 50 percent of the pay period.
Delivery Drivers: Drivers who start and finish their day at their employer’s location are due the minimum wage for that location.
Multiple Locations: Employees who do not work at least 50 percent of the pay period at the employer’s fixed location in Oregon need to be paid the rate applicable to the region where the work was performed. If an employee performs work in more than one region, an employer may track the hours worked in each region and pay the corresponding regional rates, or alternatively, pay all hours at the highest of the regional rates applicable to the employee’s work in that pay period.
Remote Workers: For employees working remotely, the minimum wage of the jurisdiction where the employee physically performs work generally applies.
Scheduled Minimum Wage Increases
Beginning July 1, 2023, Oregon’s minimum wage rates adjust annually based on inflation. No later than April 30 of each year, the Oregon Bureau of Labor and Industries calculates an adjustment to the standard minimum wage rate based on the increase, if any, from March of the prior year to March of the current year in the Consumer Price Index for All Urban Consumers for All Items (CPI-U) prepared by the Bureau of Labor Statistics.
Next Adjustment: July 1, 2026
The adjusted rates for July 1, 2026, through June 30, 2027, will be announced by April 30, 2026, and will be available on the BOLI minimum wage webpage.
Formula:
- Standard rate: CPI-adjusted annually
- Portland metro rate: Standard rate + $1.25
- Nonurban rate: Standard rate – $1.00
The wage amounts are rounded to the nearest five cents and become effective July 1 of each year. These adjustments ensure Oregon’s minimum wage keeps pace with inflation and maintains the regional differential structure.
Minimum Wage for Tipped Employees
No Tip Credit Allowed
Oregon does not permit employers to take a tip credit against minimum wage obligations. All employees, including those who receive tips, must be paid the full state minimum wage before any tips are considered.
Under ORS 653.035(3), employers, including those regulated under the federal Fair Labor Standards Act, may not include any amount received by employees as tips in determining the amount of the minimum wage required to be paid.
This means:
- Tipped employees receive the full applicable regional minimum wage ($15.45, $14.20, or $13.20 per hour) as base compensation
- All tips earned are additional compensation beyond the minimum wage
- Employers cannot use customer tips to satisfy minimum wage requirements
- Tips belong entirely to employees and cannot be retained by employers
Tipped Employee Rights
Even though Oregon prohibits tip credits, specific rules govern tip handling:
Tip Ownership: All tips received by employees are the property of the employee. Employers cannot keep any portion of tips, require employees to share tips with management, or make deductions from tips for credit card processing fees or other business expenses.
Tip Pooling: Oregon law permits voluntary tip pooling arrangements among employees who customarily receive tips, such as servers, bartenders, and bussers. However, managers, supervisors, and employers cannot participate in tip pools or require employees to contribute tips to management.
Service Charges: Mandatory service charges added to customer bills are not considered tips under Oregon law. Employers may retain service charges or distribute them according to their policies. Employers must clearly distinguish between service charges and gratuities to avoid confusion.
Commission Payments: Employers may include commission payments to employees as part of the applicable minimum wage for any pay period in which the combined wage and commission earnings comply with minimum wage requirements. In any pay period where combined wage and commission payments do not add up to the applicable minimum wage, the employer must pay the minimum rate.
Local Minimum Wage Ordinances in Oregon
State Preemption of Local Minimum Wages
Under ORS 653.017, the State of Oregon preempts all charter and statutory authority of local governments to set minimum wage requirements that differ from the state minimum wage. Cities and counties in Oregon cannot enact their own minimum wage rates that exceed or differ from the three-tier state system.
Limited Exceptions: Local governments may set minimum wage requirements in three specific circumstances:
- For Public Employers: Local governments may establish different minimum wage requirements for their own public sector employees and employees of other public employers within their jurisdiction.
- In Public Contract Specifications: Local governments may include minimum wage requirements in specifications for public contracts they enter into with private contractors.
- As Conditions of Economic Development Assistance: Local governments may establish minimum wage requirements as a condition of providing direct tax abatements or subsidies for private employers with 10 or more employees.
Application Across Oregon
The $15.45, $14.20, and $13.20 minimum wages apply uniformly across their respective jurisdictions. Unlike states such as California or New York, Oregon does not have city-level minimum wages that create variation within regions. All employers in a given county or metropolitan area must comply with the same applicable rate.
This preemption ensures consistency and predictability for employers operating in multiple jurisdictions within Oregon, while the three-tier system addresses regional cost-of-living differences at the state level.
Who Is Covered and Who Is Exempt
Employees Covered by Oregon Minimum Wage
Oregon minimum wage law covers most employees working in the state. Unless specifically exempted, covered employees include:
- Private sector workers: Full-time and part-time employees of private businesses regardless of employer size
- Salaried non-exempt employees: Employees paid on a salary basis who do not qualify for overtime exemption under the administrative, executive, or professional exemptions
- Hourly employees: Workers compensated on an hourly basis
- Temporary and seasonal workers: Employees hired for limited durations or specific seasons
- Minor employees: Workers under age 18 are entitled to the same minimum wage as adults
- Agricultural workers: Covered by minimum wage requirements, with limited exceptions for certain piece-rate work
- Domestic workers: Employees providing services in private households, with certain exceptions
Exemptions from Minimum Wage Requirements
The following categories of employees may be exempt from Oregon minimum wage requirements under ORS 653.020:
Executive, Administrative, and Professional Employees
Employees performing bona fide executive, administrative, or professional duties may be exempt if they meet both salary and duties tests. The employee must:
- Perform predominantly intellectual, managerial, or creative tasks
- Exercise discretion and independent judgment
- Earn a salary and be paid on a salary basis
For 2026, employees must earn a salary equivalent to the applicable minimum wage multiplied by 2,080 hours per year, divided by 12 months. Federal salary thresholds may also apply.
Outside Sales Employees
Employees whose primary duty is making sales away from the employer’s place of business and who are customarily and regularly engaged away from the employer’s business location are exempt. The employee’s work of any other nature for the employer cannot exceed 30 percent of hours worked in the workweek.
Agricultural Workers – Limited Exemptions
Most agricultural workers are covered by Oregon minimum wage. Exemptions apply to:
- Hand harvest or pruning laborers paid on a piece-rate basis by employers who did not use more than 500 piece-rate-work-days of agricultural labor in any calendar quarter during the preceding year
- Immediate family members of the employer (parent, spouse, child, or other immediate family)
- Certain hand harvest laborers under age 16 who are paid at the same piece-rate as employees over age 16
Student-Learners
Employers may pay student-learners enrolled in bona fide professional training programs at least 75 percent of the applicable minimum wage, subject to Commissioner approval and specific conditions under ORS 653.070.
Workers with Disabilities – Phased Out
As of July 1, 2023, Oregon no longer permits subminimum wages for workers with disabilities. All employees with disabilities must be paid at least the full applicable minimum wage under ORS 653.033.
Independent Contractors
Properly classified independent contractors are not employees and therefore not covered by minimum wage requirements. However, Oregon applies strict tests to determine independent contractor status, and misclassification may result in penalties, back wages, and other remedies.
Other Exemptions
Additional exemptions include:
- Individuals employed by the United States government
- Students employed by educational institutions where they are enrolled
- Taxicab operators
- Individuals employed on a casual basis in domestic service in or about a family home
- Volunteers at certain nonprofit organizations and camps
- Minor league baseball players subject to collective bargaining agreements
Small Employer Exemptions
Unlike some states, Oregon does not exempt small businesses from minimum wage requirements based on employee count or annual revenue. All employers in Oregon, including businesses with one employee, must comply with the applicable minimum wage.
Employer Obligations and Enforcement
Employer Compliance Requirements
Employers subject to Oregon minimum wage law must:
- Pay the applicable minimum wage for all hours worked based on the physical location where work is performed
- Maintain accurate payroll records documenting hours worked and wages paid for not less than two years, including:
- Employee names, addresses, and occupations
- Actual hours worked each week and each pay period
- Wage rates and total wages paid
- Any deductions from wages
- Display required posters informing employees of minimum wage rates. The Oregon Bureau of Labor and Industries provides posters that employers must display in conspicuous and accessible locations.
- Issue compliant wage statements showing gross wages, deductions, net pay, and for non-exempt employees, regular and overtime hours worked
- Provide written notice to new hires regarding wage rates, pay schedules, and information about deductions to help employees understand their wage statements (effective January 1, 2026, under SB 906)
- Keep records open for inspection by the Commissioner of the Bureau of Labor and Industries or designee at any reasonable time
Enforcement Agency and Process
The Oregon Bureau of Labor and Industries enforces minimum wage requirements in Oregon. BOLI:
- Investigates wage complaints filed by employees
- Conducts routine compliance inspections and strategic enforcement initiatives
- Issues citations and orders for wage violations
- Collects unpaid wages and penalties on behalf of employees
- Refers cases for criminal prosecution when appropriate
Filing a Complaint: Employees who believe they have not been paid proper minimum wage may file a complaint with BOLI through:
- Online portal: BOLI Complaint Resolution Center
- Phone: 971-245-3844
- Email: boli_help@boli.oregon.gov
- In-person: Regional offices in Portland, Salem, and Eugene
ORS 653.060 prohibits retaliation against employees who file wage complaints or cooperate with investigations. Employer retaliation constitutes an unlawful employment practice under ORS chapter 659A.
Penalties and Remedies
Employers who violate Oregon minimum wage law under ORS 653.055 and ORS 653.256 may be subject to:
Back Wages: Employers must pay employees the difference between wages paid and the required minimum wage for all hours worked. The statute of limitations for wage claims is generally two years from the date of violation, though certain circumstances may extend this period.
Liquidated Damages: Oregon law authorizes liquidated damages under ORS 652.150, which may equal the amount of unpaid wages, serving as compensation for delayed payment and deterring violations.
Civil Penalties: The Commissioner may assess civil penalties not to exceed $1,000 against any person who willfully violates minimum wage requirements. Each violation is a separate and distinct offense.
Interest: Unpaid wages may accrue interest from the date wages were due until payment.
Attorney Fees: Employees who prevail in minimum wage actions may recover reasonable attorney fees and costs of litigation under ORS 653.055(4).
Criminal Penalties: Willful violations may result in criminal prosecution, though such cases are rare and reserved for egregious circumstances.
Employer Liability to Multiple Employees: The Commissioner may join multiple wage claims against the same employer in a single proceeding, streamlining enforcement actions affecting multiple workers.
Oregon Minimum Wage vs Federal Law
The Federal Minimum Wage Floor
The Fair Labor Standards Act (FLSA) establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. This federal rate sets a floor for minimum wage requirements nationwide and applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000.
When State Law Applies
Because Oregon’s minimum wages of $15.45, $14.20, and $13.20 per hour all significantly exceed the federal minimum, most employees working in Oregon are entitled to the higher state rate. The federal minimum serves as a fallback only for the limited category of employers covered by federal but not state law, which is rare in practice.
Oregon law serves to extend minimum wage protection to employers and employees who may fall outside federal coverage while providing substantially higher wage floors than federal law requires.
Higher Applicable Rate Rule
The fundamental principle governing minimum wage compliance is that employers must pay whichever rate—federal, state, or local—provides employees the highest hourly wage. This rule ensures workers receive maximum protection under applicable law.
Practical Application:
- Identify all minimum wage rates that may apply (federal and state)
- Determine which rates cover the specific employer and employee
- Pay the highest applicable rate
In Oregon, because no local minimum wages exist due to state preemption, employers need only compare the federal minimum of $7.25 with the applicable Oregon regional rate ($15.45, $14.20, or $13.20) and pay the Oregon rate, which is always higher.
Minimum Wage Posting Requirements
Oregon law under ORS 653.050 requires employers to display an official minimum wage notice in a conspicuous location accessible to all employees. The poster must include current wage rates, employee rights, and contact information for the Oregon Bureau of Labor and Industries.
Where to obtain posters:
- Download from BOLI’s employer resources page
- Purchase printed copies: The 2025-2026 official poster is available through BOLI’s ecommerce store (valid July 1, 2025 to June 30, 2026)
- Available languages: English and Spanish (two-sided poster)
Posting locations: The notice must be posted in each workplace location where employees can readily see it, typically near time clocks, in break rooms, or at other prominent locations where employees gather or pass through regularly.
Compliance: Failure to display required posters may result in citations and civil penalties from the Oregon Bureau of Labor and Industries. Employers must update posters when minimum wage rates change, which occurs annually on July 1 in Oregon.
Frequently Asked Questions: Minimum Wage in Oregon 2026
What is the minimum wage in Oregon in 2026?
The minimum wage in Oregon for the period July 1, 2025, through June 30, 2026, depends on where work is performed. The Portland metro area rate is $15.45 per hour, standard counties pay $14.20 per hour, and nonurban counties require $13.20 per hour.
When is the next minimum wage increase in Oregon?
The next minimum wage increase in Oregon is scheduled for July 1, 2026. The Oregon Bureau of Labor and Industries will announce the adjusted rates by April 30, 2026, based on inflation as measured by the Consumer Price Index. Future increases will continue annually on July 1 based on CPI adjustments.
Does Oregon allow tip credit?
No, Oregon does not allow tip credit. All employees, including those who receive tips, must be paid the full minimum wage of $15.45, $14.20, or $13.20 per hour (depending on location) before tips. Tips are additional compensation that belongs entirely to employees.
Are there different minimum wages in different cities in Oregon?
No, Oregon does not have city-level minimum wages. State law preempts local governments from establishing their own minimum wage rates. However, Oregon has three regional rates: $15.45 per hour in the Portland metro area, $14.20 per hour in standard counties, and $13.20 per hour in 18 nonurban counties.
Who is exempt from minimum wage in Oregon?
Common exemptions from Oregon minimum wage include executive, administrative, and professional employees meeting salary and duties tests, outside sales employees, certain agricultural workers paid on a piece-rate basis by small employers, and properly classified independent contractors. Most hourly workers, including part-time employees and minors, are covered.
What happens if an employer pays below minimum wage in Oregon?
Employers who pay below minimum wage face back wage liability, liquidated damages equal to the unpaid amount, civil penalties up to $1,000 per violation, and potential attorney fees to prevailing employees. Oregon law under ORS 653.060 prohibits retaliation against workers who report violations. Employees can file complaints with the Oregon Bureau of Labor and Industries to recover unpaid wages.
Do small businesses have to pay minimum wage in Oregon?
Yes, all employers in Oregon must pay minimum wage regardless of size. Even businesses with one employee must comply with the applicable regional rate. Oregon does not exempt small employers from minimum wage requirements based on employee count or annual revenue.
Is Oregon’s minimum wage higher than the federal minimum?
Yes, all three of Oregon’s regional minimum wage rates significantly exceed the federal minimum wage of $7.25 per hour. Oregon employers must pay the higher state rates: $15.45 in Portland metro, $14.20 in standard counties, or $13.20 in nonurban counties.
How often does Oregon increase its minimum wage?
Oregon adjusts its minimum wage annually on July 1 based on the Consumer Price Index for All Urban Consumers (CPI-U). The Oregon Bureau of Labor and Industries calculates the adjustment no later than April 30 each year by comparing CPI data from March to March. The adjustment is rounded to the nearest five cents.
Can employers pay less than minimum wage during training?
Oregon permits employers to pay student-learners enrolled in bona fide professional training programs at least 75 percent of the applicable minimum wage, subject to Commissioner approval under ORS 653.070. This applies only to specific circumstances with educational institution participation. Regular training periods do not permit subminimum wages.
How to file a minimum wage complaint in Oregon
Employees who believe they have not received proper minimum wage compensation may file a wage complaint with the Oregon Bureau of Labor and Industries. Filing methods include:
- Online portal: BOLI Complaint Resolution Center
- Phone: 971-245-3844
- Email: boli_help@boli.oregon.gov
- In-person: Regional offices in Portland, Salem, and Eugene
The Oregon Bureau of Labor and Industries will investigate the complaint and may recover unpaid wages on behalf of the employee. Oregon law prohibits employer retaliation against workers who file wage complaints or participate in investigations.
Do remote workers in Oregon get the Oregon minimum wage?
Generally, the minimum wage of the jurisdiction where the employee physically performs work applies. Remote workers located in Oregon are typically entitled to the applicable Oregon regional minimum wage ($15.45, $14.20, or $13.20), even if their employer is based in another state. The specific rate depends on the county where the remote worker is physically located while working.
Information Verification Log
All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.
| Source | Last Verified | Full URL |
|---|---|---|
| Oregon Revised Statutes Chapter 653 | February 4, 2026 | https://www.oregonlegislature.gov/bills_laws/ors/ors653.html |
| Oregon Bureau of Labor and Industries – Minimum Wage | February 4, 2026 | https://www.oregon.gov/boli/workers/pages/minimum-wage.aspx |
| Oregon Bureau of Labor and Industries – Minimum Wage Schedule | February 4, 2026 | https://www.oregon.gov/boli/workers/pages/minimum-wage-schedule.aspx |
| Oregon Bureau of Labor and Industries – Complaint Filing | February 4, 2026 | https://www.oregon.gov/boli/workers/pages/complaint.aspx |
| Oregon Bureau of Labor and Industries – Workplace Posters | February 4, 2026 | https://www.oregon.gov/boli/employers/pages/posters.aspx |
| Fair Labor Standards Act (FLSA) | February 4, 2026 | https://www.dol.gov/agencies/whd/minimum-wage |