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Minimum Wage in Oregon: $15.55, Portland's $16.80 and the Three Zones

The minimum wage in Oregon is $15.55 an hour standard, $16.80 in the Portland metro area and $14.55 in nonurban counties, for 1 July 2026 to 30 June 2027. Oregon doesn't allow tip credits, so tipped staff get the full rate for their zone plus their tips.

I've checked this against Oregon's Bureau of Labor and Industries, known as BOLI, and its rate schedule, plus the U.S. Department of Labor's tables, in October 2026. Oregon is the one state where you can't answer the question without knowing where the work happens, so most of this page is about the zones.

The three Oregon rates

ZoneHourly rate, 1 July 2026 to 30 June 2027Where it applies
Portland Metro$16.80Inside the urban growth boundary, including parts of Clackamas, Multnomah and Washington counties
Standard$15.55Most of the state outside the other two zones
Nonurban counties$14.55Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa and Wheeler

BOLI says that if your work location is inside the urban growth boundary you must be paid at least the Portland Metro rate, even if your county is only partly inside it. BOLI also runs an interactive map for checking a specific address.

The 50% rule for workers who move around

This is the insight people miss. BOLI says workers should typically be paid the wage for the county where they work 50% or more of their hours each week. If you travel for work, your employer can pay you the rate for each county you work in. For delivery drivers who cross several counties, BOLI's answer is the rate for the county where you start and end your day.

  1. List every location each employee works in during a typical week.
  2. Find which zone each location sits in, using BOLI's map for addresses near the boundary.
  3. If one zone gets 50% or more of the hours, pay that zone's rate.
  4. For travelling staff, either pay each county's rate for hours there, or the start and end county rate for drivers.
  5. Recheck on 1 July every year, when the new rates take effect.

Tips, minors and training wages

  • Tip credits are illegal in Oregon. Tips belong to the worker and can't be counted toward hourly pay.
  • An employer can require tip pooling, but under federal rules managers and the house can't share in the pool.
  • The minimum wage is the same for adults and for minors.
  • There's no training wage. Oregon requires at least minimum wage during every stage of employment, including on-the-job training.
  • Workers can't agree to accept less than the minimum wage.

That makes Oregon one of the few states where a server earns the same cash wage as a cook. If you run a shared tip pool, read my tip pooling guide for the federal limits.

How the 1 July rise is set

Since 1 July 2023, the standard rate has been indexed to inflation. By 30 April each year, BOLI calculates the change in the U.S. City Average Consumer Price Index for All Urban Consumers from March of the prior year to March of the current year. The increase is rounded to the nearest five cents and takes effect on 1 July. The Portland Metro rate is then set $1.25 above the standard rate, and the nonurban rate $1 below it.

Oregon's recent history

Year (1 January)Standard rate
2020$12.00
2021$12.75
2022$13.50
2023$14.20
2024$14.70
From 1 July 2026$15.55

The 2020 to 2024 figures are the U.S. Department of Labor's standard rates on 1 January of each year. Because Oregon's rises land on 1 July, a calendar year has two rates.

Overtime and exempt salaries

Overtime is due after 40 hours a week, and Oregon also requires premium pay after 10 hours a day in certain mills, factories, canneries and packing plants. For salaried staff, BOLI says exempt employees must currently get the more generous federal minimum salary of $684 a week to be exempt. My overtime laws guide covers the other exempt tests.

Payroll checks before each 1 July

  • Confirm the new standard, Portland Metro and nonurban rates once BOLI publishes them.
  • Map every employee to a zone using their main work location.
  • Raise anyone below the new rate on the first payroll covering 1 July.
  • Check salaried staff still meet the exempt salary test.
  • Update posters at every work site.

Oregon against the West Coast

StateMinimum wage (as of October 2026)Tipped cash wage
Washington$17.13$17.13, no tip credit
California$16.90$16.90, no tip credit
Oregon, Portland Metro$16.80$16.80, no tip credit
Oregon, standard$15.55$15.55, no tip credit
Nevada$12.00$12.00, no tip credit
Idaho$7.25$3.35

The whole West Coast bans the tip credit, so Idaho is the only neighbour where a tipped worker's cash wage drops well below the headline rate. Portland employers compete directly with Vancouver, Washington, across the river, where the state rate is higher still. My Washington minimum wage guide has its rules.

My verdict

Oregon is three minimum wages in one state, with no tip credit and no training wage. Pay by zone, use the 50% rule for staff who move between zones, and diary 1 July for every rise. Get those right and Oregon is predictable, even if it's not cheap.

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Frequently asked questions

What is the minimum wage in Oregon?

From 1 July 2026 to 30 June 2027 it's $15.55 standard, $16.80 in Portland Metro and $14.55 in nonurban counties.

Does Oregon allow a tip credit?

No. Tip credits are illegal in Oregon, so tips can't count toward the minimum wage.

When does Oregon's minimum wage go up?

Every 1 July, based on the change in the Consumer Price Index from March to March.

Which minimum wage applies if I work in two Oregon zones?

Typically the rate for the county where you work 50% or more of your hours each week.

Is the minimum wage lower for minors in Oregon?

No. BOLI says the minimum wage is the same for adults and minors.

Can Oregon employers pay a training wage?

No. Oregon requires at least the minimum wage during every stage of employment, including training.

Which rate applies to delivery drivers in Oregon?

BOLI says drivers who work across several counties should get the rate for the county where they start and end their day.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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