The current Oregon minimum wage rate is $14.00 for employees within urban growth boundaries, $12.00 for employees in certain nonurban counties, and $12.75 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, pay certain employees a subminimum wage.
– Employers located within an urban growth boundary of certain metropolitan service districts
- July 1, 2021 – $14.00
- July 1, 2022 – $14.75
– Employers located in certain nonurban counties
- July 1, 2021 – $12.00
- July 1, 2022 – $12.50
Counties that fall with in the definition of a “nonurban county” include:
– Employers in any other geographic area
- July 1, 2021 – $12.75
- 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.
Oregon employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. See FLSA: Minimum Wage.
If an employer chooses to pay employees minimum wage, the employer must pay those employees in accordance with the minimum wage law, either federal or state, that 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.
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.
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 which are organized and conducted for the education and training of individuals with mental or physical disabilities may obtain authorization to pay a subminimum wage 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)
Oregon minimum wage laws do not permit employers to pay trainees a subminimum wage rate that is less than the standard minimum wage.
Oregon minimum wage laws do not permit employers to pay apprentices a subminimum wage rate that is less than the standard minimum wage.
Oregon minimum wage laws do not permit employers to pay learners a subminimum wage rate that is less than the standard minimum wage.
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
Oregon minimum wage laws do not allow employers to pay student workers a subminimum wage rate that is less than the standard minimum wage.