Oregon Minimum Wage Laws – 2022

The current Oregon minimum wage rate is $14.75 for employees within urban growth boundaries, $12.50 for employees in certain nonurban counties, and $13.50 for all other employees. Employers are required to pay employees Oregon’s minimum wage rate for every hour worked unless the employer or employee is exempt by state or federal law.

Regarding the tip wage rate, Oregon does not allow employers to pay employees who earn tips a tipped minimum wage rate lower than the standard minimum wage rates. Additionally, Oregon’s laws may allow employers, in limited situations, to pay certain employees a subminimum wage.


Minimum wage

On March 2, 2016, Gov. Brown signed a law providing for increases to Oregon’s minimum wage. The minimum wage increases began on July 1, 2016, and provide for different minimum wages depending on the area in which a business operates within the state. The increases and geographic distinctions are as follows:

– Employers located within an urban growth boundary of certain metropolitan service districts

  • July 1, 2022 – $14.75

– Employers located in certain nonurban counties

  • July 1, 2022 – $12.50

Counties that fall within the definition of a “nonurban county” include:

  • Baker
  • Coos
  • Crook
  • Curry
  • Douglas
  • Gilliam
  • Grant
  • Harney
  • Jefferson
  • Klamath
  • Lake
  • Malheur
  • Marrow
  • Sherman
  • Umatilla
  • Union
  • Wallowa
  • Wheeler

– Employers in any other geographic area

  • July 1, 2022 – $13.50

Beginning in 2023, the minimum wage will increase, consistent with an increase in the U.S. City Average Consumer Price Index for All Urban Consumers.

OR Statute 653.02; OR Statute 653.026

Oregon employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. For more information, see FLSA: Minimum Wage.

Suppose an employer chooses to pay employees minimum wage. In that case, the employer must pay those employees in accordance with the minimum wage law, either federal or state, which results in the employees being paid the higher wage.

In most instances in Oregon, the Oregon minimum wage will apply as it generally guarantees a higher wage rate for employees than federal law.


Minimum Wage Calculator


Tip minimum wage

Oregon does not have a separate minimum wage for tipped employees. Employers are required to pay tipped employees the full minimum wage amount regardless of how much the employee receives in tips. OR Statute 653.035(3).


Tip pooling and sharing

Oregon minimum wage laws do not address tip or gratuity pooling or sharing.


Subminimum wage

Employees with disabilities

Oregon minimum wage laws permit employers to pay employees with disabilities a subminimum wage rate that is lower than the standard minimum wage until June 30, 2023, at which time employers will be required to pay employees with disabilities the standard minimum wage. Currently, employers may pay employees with disabilities $10.75 per hour, and on July 1, 2022, the subminimum wage rate will be $12.50 per hour. OR Statute 653.033; OR Admin. Rules 839-020-0015

Until June 30, 2023, employers who operate nonprofit rehabilitation programs or organizations organized and conducted for the education and training of individuals with mental or physical disabilities may obtain authorization to pay a subminimum wage. This is to disable employees by applying for such authorization with the U.S. Department of Labor, Wage and Hour Division.

The Bureau will recognize a certificate issued by the U.S. Department of Labor allowing the payment of subminimum wage rates under the Fair Labor Standards Act as sufficient to permit the subminimum wage payments. OR Admin. Rules 839-020-0015(3)(g)


Trainees

Oregon minimum wage laws do not permit employers to pay trainees a subminimum wage rate that is less than the standard minimum wage.


Apprentices

Oregon minimum wage laws do not permit employers to pay apprentices a subminimum wage rate that is less than the standard minimum wage.


Learners

Oregon minimum wage laws do not permit employers to pay learners a subminimum wage rate that is less than the standard minimum wage.


Student learners

Oregon minimum wage laws allow employers to pay student learners a subminimum wage rate that is less than 75% of the standard minimum wage if the student learners are receiving instruction in an accredited school, college, or university and who is employed on a part-time basis pursuant to a bona fide professional training program.

Employers must submit an application with the Bureau of Labor and Industries for approval to pay a subminimum wage to student learners. OR Statute 653.070; OR Admin. Rules 839-020-0015


Student workers

Oregon minimum wage laws do not allow employers to pay student workers a subminimum wage rate that is less than the standard minimum wage.


Oregon Minimum Wage Laws 2022 FAQs

Is there a new minimum wage rate in Oregon this 2022?

The series of gradual minimum wage increases already started last July 2021. However, we can expect another minimum wage rate increase this coming July 2022.

Can employers expect further minimum wage rate increases in Oregon in the near future?

Yes, there are plans to implement further changes to the minimum salary in 2023. The changes are expected to happen on July 2023. There is no set rate yet, though.

That’s because the Oregon minimum wage rate will start an annual adjustment based on the Consumer Price Index (or CPI). These changes seek to make the minimum pay rates more competitive, especially to the changing costs of living in the state.

What are the factors that can impact the minimum salary rate in Oregon?

Aside from the CPI, other factors can impact the salary of minimum wage jobs.

The employee type is one of the first things that you should consider. For instance, in Oregon, professional “white collar” employees are entitled to receive a minimum salary.

Student learners are different from trainees. Oregon labor laws don’t allow the training wage to be lower than the standard minimum salary. Meanwhile, it is possible to pay a subminimum rate for student learners.

Another factor is employer location. As you might have noticed above, the average wages vary according to the set county wage rate.

The salary in standard counties is different from the metropolitan wage rate.

How can both employers and employees adjust to accommodate Oregon’s rising minimum wage levels?

We understand the pressure on employers that the hourly minimum wage increases bring, especially with the COVID-19 pandemic’s impact across various industries.

The best step to better adapt to these hourly wage changes is to assess your company for business expenses. Check if there’s a chance to decrease your production costs.

Any additional costs must also be re-evaluated. For instance, employee turnovers can be quite expensive.

It would probably prove to be more affordable to improve your company culture instead, especially in the long run.

With these in mind, we’re sure that you’ll be able to find the budget to meet the upcoming salary increases. On the other hand, if you’re a minimum wage employee, it’s best to keep track of your minimum wage earnings.

Take note of the minimum wage increase schedule as well. In this way, you’ll be able to determine whether your employer is meeting the minimum wage obligation or not.


Other State’s Minimum Wage Information

AlabamaHawaiiMassachusettsNew MexicoSouth Dakota
AlaskaIdahoMichiganNew YorkTennessee
ArizonaIllinoisMinnesotaNorth CarolinaTexas
ArkansasIndianaMississippiNorth DakotaUtah
CaliforniaIowaMissouriOhioVermont
ColoradoKansasMontanaOklahomaVirginia
ConnecticutKentuckyNebraskaOregonWashington
DelawareLouisianaNevadaPennsylvaniaWest Virginia
District of ColumbiaMaineNew HampshireRhode IslandWisconsin
FloridaMarylandNew JerseySouth CarolinaWyoming
Georgia

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We hope you find our newsletters help you better navigate employment and labor law issues.