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Oregon Minimum Wage Rate
Effective July 1, 2018 to June 30, 2019
Standard                         Portland Metro                         Nonurban Counties
$10.75                             $12.00                                        $10.50
Enacted by the 2016 Oregon Legislature, ORS 653.025 establishes a series of annual minimum wage rate increases that run through June, 2022. Beginning July 1, 2023, the minimum wage rate will increase based on the inflation as measured by the Consumer Price Index (CPI).
In addition to a standard minimum wage rate, the law sets out a separate rate which applies to employers located in the urban growth boundary of a metropolitan service district (currently, only the Portland metropolitan area). A third rate applies within certain "nonurban" counties named in the law.
Portland Metro
Nonurban Counties
July 1, 2017
July 1, 2018
July 1, 2019
July 1, 2020
July 1, 2021
July 1, 2022
July 1, 2023
Adjusted annually based on the increase, if any, to the US City average Consumer Price Index for All Urban Consumers
$1.25 over the standard minimum wage
$1 less than the standard minimum wage
Note: In the month of June 2018, all the hours worked up to 12:00 midnight on June 30, 2018 will be paid at the previous applicable minimum wage rate even if the payroll is done on or after July 1, 2018. For an employee whose work day straddles between June 30 and July 1, 2018, there will be two different rates of pay for that particular day if they are a minimum wage worker. The hours worked on and after 12:01 a.m., July 1, 2018 must be paid at the higher applicable minimum wage rate.
Portland Metro
The Portland Metro rate applies to employers located within the urban growth boundary (UGB) of the metropolitan service district.
  • A map of the UGB is also available for download.
Nonurban Counties
The nonurban rate applies to employers located within the following counties:
Oregon Minimum Wage Rates by County
NOTE: Employers located within Washington, Multnomah and Clackamas counties but NOT within the UGB must pay employees the standard rate, not the metro rate.
(Click for black and white version of this map.)

Q. What is the federal minimum wage?

A. The current federal minimum wage remains $7.25 per hour.  
Q. I am a Portland employer who has several exempt employees who make salaries near the minimum wage. Will the July 1, 2018 increase affect my employees' exempt status?
A: **Yes.** Starting July 1, 2018, exempt employees working within the Metro Urban Growth Boundary must earn at least $480 per week or $24,960 per year due to the $12/hr. wage increase.
Q. So which minimum wage am I required to pay my employee – the state or the federal? 

A. When federal and state employment laws conflict, employers must apply whichever standard is most beneficial to the employee. Therefore, Oregon employers must pay the higher state minimum wage.
Q. May I pay my new employees a training wage which is below the minimum wage? 

A. No. Unlike federal law, Oregon law requires that employees receive at least minimum wage during all stages of employment. This includes any period of on-the-job training. 
Q. May I count an employee's tips against the minimum wage? 

A. No. Oregon law does not allow for tip credits. ORS 653.035(3). 
Q. If I hire minors, do I need to pay them minimum wage?

A. Yes. Under Oregon law, the minimum wage applies to minors. 
Q. I provide meals and lodging for my employee. May I count the fair market value of the meals and lodging towards the minimum wage obligation? 

A. Yes, employers may make an authorized deduction for meals and lodging so long as they are provided for the “private benefit” of the employee. However, if you require your employee to live on-site, or if you derive a mutual benefit from the employee living on the premises, you must pay minimum wage in addition to the value of meals and lodging. OAR 839-020-0025. 
Note that employers may not require an employee to pay (e.g., by direct charge) amounts that could not have been lawfully deducted from wages under the minimum wage law, if to do so would reduce that employee's minimum wage earnings.

Q. I currently pay my employee $11.50 per hour ($1.25 above the July 1, 2017 to June 30, 2018 standard minimum wage). The employee claims that as of July 1, 2018, I will be legally obligated to pay at least $12.75 per hour ($1.25 cents above the July 1, 2018 to June 30, 2019 minimum wage). Is that right? 

A. No. The law only requires you to pay the minimum wage of $10.75 (standard) per hour as of July 1, 2018, unless you have a contract or policy providing that you will pay more, only those employees who were working for less than $10.75 per hour are legally required to receive a raise.
Q. If I pay my employee on a commission, does the minimum wage law still apply? 
A. Yes. Unless your employee falls into an exempt category, you must pay the employee at least minimum wage for all hours actually worked. This means that even with a commissioned employee, you must track all daily and weekly hours worked to determine whether the average hourly rate meets the minimum wage. If the average hourly rate is less than the minimum wage in any pay period, you must boost the employee's wages up to the minimum wage.
Q. My employee, who normally earns $13.00 per hour, travels as part of her job duties. May I pay her at a lower hourly rate for the travel time?

A. Yes, as long as you pay at least the minimum wage for each hour worked.


Nothing on this website is intended as legal advice. Any responses to specific questions are based on the facts as we understand them, and not intended to apply to any other situations. This communication is not an agency order. If you need legal advice, please consult an attorney. We attempt to update the information on this website as soon as practicable following changes or developments in the laws and rules affecting Oregon employers, but we make no warranties or representations, express or implied, about whether the information provided is current. We urge you to check the applicable statutes and administrative rules yourself and to consult with legal counsel prior to taking action that may invoke employee rights or employer responsibilities or omitting to act when required by law to act.