From July 1, 2026, Oregon's standard minimum wage is $15.55 per hour, with $16.80 per hour in the Portland metro area and $14.55 per hour in nonurban counties. From January 1 through June 30, 2026, the rates were $15.05, $16.30, and $14.05. No tip credit is allowed, so tipped employees receive the same rate.
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Oregon has set its minimum wage above the federal floor of $7.25/hr. As an employer, you must pay at least the applicable minimum wage to all non-exempt employees. Getting this wrong can result in back pay claims, penalties, and lawsuits.
Current Oregon Minimum Wage: $15.55/hr Standard
| Standard Minimum Wage | $15.55/hr |
| Portland Metro Minimum Wage | $16.80/hr |
| Nonurban Counties Minimum Wage | $14.55/hr |
| Tipped Minimum Wage | Same as above (no tip credit) |
| Federal Minimum Wage | $7.25/hr |
When both federal and state minimum wages apply, employers must pay the higher of the two. In Oregon, the state rate for the work location applies.
Tipped Employee Minimum Wage: No Tip Credit
Tip credits are illegal in Oregon. Employers must pay tipped employees the full minimum wage for their work location in cash wages, and tips cannot be counted toward it.
From the Payroll Desk
Oregon does not allow a tip credit. Set every tipped employee's hourly rate at or above the full minimum wage for the work location, whatever the employee earns in tips.
Federal vs. State Minimum Wage
The federal minimum wage has been $7.25/hr since 2009. Oregon has set a higher rate, so the state rate applies to all employers in Oregon.
Local Minimum Wage Exceptions
Oregon's minimum wage depends on work location. From July 1, 2026, the Portland metro rate inside the urban growth boundary is $16.80/hr, the standard rate is $15.55/hr, and the nonurban county rate is $14.55/hr. No tip credit is allowed.
Overtime and Minimum Wage
Under the FLSA, non-exempt employees who work more than 40 hours in a workweek must be paid at least 1.5x their regular rate. The overtime rate is based on the actual rate paid (which must be at least the minimum wage), not a fixed multiplier of the minimum.
For more on overtime rules, see our Overtime Pay Rules guide.
Employer Compliance
- Pay at least the minimum wage for each work location ($15.55/hr standard from July 1, 2026) to all non-exempt employees
- Pay tipped employees the full minimum wage; tips cannot count toward it
- Display the required minimum wage poster in a visible workplace location
- Keep accurate payroll records for at least 3 years (federal requirement)
- Monitor for local minimum wage ordinances in your municipality
Frequently Asked Questions
What is the Oregon minimum wage in 2026?
From July 1, 2026, through June 30, 2027, Oregon's minimum wage is $15.55 per hour standard, $16.80 per hour in the Portland metro area, and $14.55 per hour in nonurban counties. From January 1 through June 30, 2026, the rates were $15.05, $16.30, and $14.05. No tip credit is allowed.
What is the tipped minimum wage in Oregon?
Oregon has no lower tipped minimum wage. Tip credits are illegal in Oregon, so tipped employees must be paid the full minimum wage for their work location before tips.
Does Oregon follow the federal minimum wage?
No, Oregon sets its own minimum wage, $15.55/hr standard from July 1, 2026, which is above the federal minimum of $7.25/hr.
What are the penalties for violating Oregon minimum wage laws?
Employers who fail to pay the minimum wage in Oregon may face back pay obligations, penalties, fines, and potential lawsuits from affected employees. The Oregon Bureau of Labor and Industries (BOLI) enforces minimum wage compliance.
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Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of February 2026 and may not reflect recent changes in federal or Oregon state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Oregon law before making payroll or compliance decisions for your business.