What Is Oregon's Minimum Wage in 2025?
Oregon has three different minimum wage rates based on geographic location. As of July 1, 2025:
- Portland Metro area: $15.95 per hour
- Standard counties: $14.70 per hour
- Nonurban counties: $13.70 per hour
Your minimum wage depends on where you physically perform work, not where your employer is located or headquartered. This three-tier system makes Oregon unique among U.S. states and recognizes that cost of living varies significantly across the state.
Why Oregon’s Three-Tier System Matters
Oregon’s tiered minimum wage system acknowledges economic reality: living costs in Portland are dramatically higher than in rural Morrow County. Rather than forcing a one-size-fits-all approach, Oregon adjusts minimum wage to regional economic conditions.
If your employer pays you less than the minimum wage for your work location, they’re breaking the law. You can recover unpaid wages, penalties (up to $1,000 per pay period), and interest. Understanding which tier applies to you is the first step in protecting your rights.
The Three Oregon Minimum Wage Tiers Explained
Tier 1: Portland Metro Area – $15.95/hour (2025)
Who it covers: Workers performing work in Clackamas, Multnomah, or Washington County within the urban growth boundary.
2025 rate: $15.95 per hour (effective July 1, 2025)
What is the urban growth boundary? The Portland Metro urban growth boundary (UGB) is a geographic line separating urban land from rural land. If you work within this boundary in one of the three covered counties, you receive the Portland Metro rate.
Cities fully within the Portland Metro tier (partial list):
- Portland
- Beaverton
- Hillsboro
- Gresham
- Lake Oswego
- Tigard
- Tualatin
- West Linn
- Oregon City
- Milwaukie
- Cornelius
- Forest Grove (most areas)
Check your location: If you’re unsure whether your workplace is inside the urban growth boundary, check with Metro (Portland’s regional government) at oregonmetro.gov or ask your employer which rate applies.
Example: Maria works at a coffee shop in downtown Portland. She receives $15.95/hour minimum wage because Portland is within the Portland Metro tier.
Tier 2: Standard Counties – $14.70/hour (2025)
Who it covers: Workers in designated “standard” counties that don’t qualify for Portland Metro or Nonurban rates.
2025 rate: $14.70 per hour (effective July 1, 2025)
Standard counties include:
- Benton County
- Clatsop County
- Columbia County
- Deschutes County
- Hood River County
- Jackson County
- Josephine County
- Lane County
- Lincoln County
- Linn County
- Marion County
- Polk County
- Tillamook County
- Wasco County
- Yamhill County
Plus: Areas of Clackamas, Multnomah, and Washington Counties outside the urban growth boundary
Major cities in Standard tier:
- Salem (Marion/Polk Counties)
- Eugene (Lane County)
- Bend (Deschutes County)
- Corvallis (Benton County)
- Medford (Jackson County)
- Grants Pass (Josephine County)
- Astoria (Clatsop County)
- Hood River (Hood River County)
- The Dalles (Wasco County)
- McMinnville (Yamhill County)
Example: James works at a retail store in Eugene. He receives $14.70/hour minimum wage because Lane County is a Standard county.
Tier 3: Nonurban Counties – $13.70/hour (2025)
Who it covers: Workers in Oregon’s rural counties with lower population density and cost of living.
2025 rate: $13.70 per hour (effective July 1, 2025)
Nonurban counties include:
- Baker County
- Coos County
- Crook County
- Curry County
- Douglas County
- Gilliam County
- Grant County
- Harney County
- Jefferson County
- Klamath County
- Lake County
- Malheur County
- Morrow County
- Sherman County
- Umatilla County
- Union County
- Wallowa County
- Wheeler County
Major towns in Nonurban tier:
- Klamath Falls (Klamath County)
- Pendleton (Umatilla County)
- Roseburg (Douglas County)
- Coos Bay (Coos County)
- Ontario (Malheur County)
- La Grande (Union County)
- Baker City (Baker County)
- Hermiston (Umatilla County)
Example: Robert works on a farm in Malheur County. He receives $13.70/hour minimum wage because Malheur County is a Nonurban county.
Quick Reference: Which Minimum Wage Rate Applies?
Step 1: Where do you physically perform work?
Step 2: Find the county in this list:
| Your Work Location | Minimum Wage (2025) | Tier |
|---|---|---|
| Clackamas, Multnomah, or Washington County (inside Portland urban growth boundary) | $15.95/hour | Portland Metro |
| Clackamas, Multnomah, or Washington County (outside urban growth boundary) | $14.70/hour | Standard |
| Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, or Yamhill County | $14.70/hour | Standard |
| Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, or Wheeler County | $13.70/hour | Nonurban |
Step 3: Your employer must pay you at least the minimum wage for your work location.
Oregon Minimum Wage Increases: Future Rates
Oregon’s minimum wage increases annually on July 1 based on inflation (Consumer Price Index).
Projected Future Rates
| Year | Portland Metro | Standard | Nonurban |
|---|---|---|---|
| 2025 (July 1) | $15.95 | $14.70 | $13.70 |
| 2026 (July 1) | ~$16.50* | ~$15.20* | ~$14.15* |
| 2027 (July 1) | ~$17.10* | ~$15.75* | ~$14.65* |
*Projected based on historical inflation averages (3-4% annual increase). Actual rates depend on Consumer Price Index calculations and will be announced by Oregon Bureau of Labor and Industries (BOLI) each year.
Where to check official rates: Oregon BOLI website at boli.oregon.gov
Special Situations and Exceptions
Tipped Workers: No Tip Credit in Oregon
Oregon does not allow tip credits. Your employer must pay you the full minimum wage for your tier before tips.
Example: You work as a server in Portland and earn $200 in tips during a 30-hour workweek.
- Hourly wage owed: $15.95/hour × 30 hours = $478.50
- Tips you keep: $200.00
- Total earnings: $678.50
Your employer cannot reduce your $15.95/hour wage because you receive tips. You get the full minimum wage plus all tips.
This differs from many states where employers can pay tipped workers as little as $2.13/hour if tips make up the difference. Oregon prohibits this practice—you get full minimum wage regardless of tips.
Workers Under Age 18
There is no separate minimum wage for minors in Oregon. Workers under age 18 receive the same minimum wage as adults based on work location.
Example: A 16-year-old working at a fast-food restaurant in Salem receives $14.70/hour (Standard tier rate), the same as an adult worker.
Training Wage: First 90 Days (Limited Exception)
Oregon allows employers to pay a training wage of $0.50 less than the standard minimum wage during an employee’s first 90 days of employment, but only if certain conditions are met.
Training wage rates (2025):
- Portland Metro: $15.45/hour (instead of $15.95)
- Standard: $14.20/hour (instead of $14.70)
- Nonurban: $13.20/hour (instead of $13.70)
Restrictions on training wage:
- Only applies to workers under age 20
- Only for the first 90 calendar days of employment
- Cannot be used to displace existing workers
- Must involve actual training
After 90 days or age 20 (whichever comes first): Full minimum wage required.
Example: A 19-year-old starts their first job at a grocery store in Bend on June 1, 2025. The employer can pay $14.20/hour (training wage) until August 29, 2025 (90 days), then must pay $14.70/hour. If the worker turns 20 before August 29, the employer must immediately raise wages to $14.70/hour.
Agricultural Workers
Most agricultural workers receive the standard minimum wage for their county tier. However, some exemptions exist for:
- Hand harvest piece-rate workers (must average at least minimum wage)
- Family members working on family farms
- Certain seasonal agricultural operations
If you’re an agricultural worker paid piece rate (per pound, per box, etc.), your total wages divided by total hours worked must still equal or exceed minimum wage.
Example: You pick berries on piece rate in Marion County (Standard tier, $14.70/hour). You work 40 hours and earn $600 on piece rate. $600 ÷ 40 hours = $15.00/hour average. This exceeds minimum wage, so it’s legal. If you only earned $500, that’s $12.50/hour average, which violates minimum wage. Your employer would owe you an additional $88 ($14.70 × 40 = $588 minimum).
Salaried Employees
Salaried employees must still receive minimum wage when you calculate their hourly rate.
How to check:
- Calculate total hours worked in a pay period
- Divide salary by hours worked
- Result must equal or exceed minimum wage for your tier
Example: You’re a salaried manager in Portland earning $650/week. You work 50 hours per week.
- Hourly rate: $650 ÷ 50 hours = $13.00/hour
- This violates minimum wage (Portland Metro requires $15.95/hour)
- Your employer owes you at least $797.50/week ($15.95 × 50 hours)
Note: Exempt employees (executive, administrative, professional) have different rules, but even they must receive salary levels that ensure minimum wage compliance.
Examples of Oregon Minimum Wage in Practice
Example 1: Retail Worker Who Works in Multiple Counties
Sophia lives in Eugene but works for a retail chain with stores in multiple Oregon locations. Some weeks she works in Eugene (Lane County – Standard tier). Other weeks she works in a Coos Bay location (Coos County – Nonurban tier).
Eugene shifts (Standard tier):
- 20 hours × $14.70/hour = $294.00
Coos Bay shifts (Nonurban tier):
- 20 hours × $13.70/hour = $274.00
Total weekly wages: $568.00
Sophia’s employer must track which location she worked at each day and pay the appropriate minimum wage for each location. The rate is based on where work is performed, not where the worker lives.
Example 2: Portland Metro Boundary Question
David works for a landscaping company headquartered in Gresham (inside Portland Metro urban growth boundary). However, he spends most of his time working on client properties in rural Clackamas County (outside the urban growth boundary).
David’s minimum wage: $14.70/hour (Standard tier)
Even though his employer is in the Portland Metro tier, David’s work is performed outside the urban growth boundary. His minimum wage is based on where he performs work (rural Clackamas County = Standard tier), not where the company office is located.
Example 3: Server in Salem Restaurant
Jessica works as a server at a restaurant in Salem. She works 35 hours per week and typically receives $300 in tips weekly.
- Salem location: Marion County (Standard tier)
- Minimum wage: $14.70/hour
- Weekly wages owed: 35 hours × $14.70 = $514.50
- Tips: $300.00 (she keeps all of this)
- Total weekly earnings: $814.50
Jessica’s employer must pay her the full $514.50 in wages. The $300 in tips is entirely hers on top of her wages. Oregon does not allow tip credits, so the employer cannot reduce her hourly wage below $14.70/hour.
Example 4: Remote Worker Living in Oregon, Working for California Company
Marcus lives in Bend, Oregon but works remotely for a tech company headquartered in San Francisco. He performs all his work from his home office in Bend.
Marcus’s minimum wage: $14.70/hour (Oregon Standard tier for Deschutes County)
Although his employer is in California (which has a higher minimum wage), Marcus’s wage is governed by Oregon law because that’s where he performs work. He receives Oregon’s minimum wage for Deschutes County, not California’s higher rate.
Oregon vs. Federal Minimum Wage
Understanding how Oregon’s rates compare to federal law shows why Oregon provides stronger worker protections.
| Category | Federal Law | Oregon Law |
|---|---|---|
| Standard Minimum Wage | $7.25/hour | $13.70-$15.95/hour (tier-based) |
| Tipped Workers | $2.13/hour + tips to reach $7.25 | Full minimum wage + all tips |
| Regional Variations | None | Yes (3-tier system) |
| Annual Increases | No (set by Congress) | Yes (inflation-adjusted annually) |
| Training Wage | Youth minimum: $4.25 for first 90 days | $0.50 reduction for under-20 workers for 90 days |
Which law applies? When state and federal law both apply, the law providing the higher wage governs. Oregon’s minimum wage is always higher than federal minimum wage, so Oregon law applies to all Oregon workers.
What to Do If Your Employer Violates Minimum Wage Laws
If your employer pays you less than Oregon’s minimum wage for your tier, you have legal options.
Step 1: Document the Violation
Gather evidence:
- Pay stubs showing hourly rate or salary
- Time records showing hours worked
- Employment contract or offer letter
- Work location documentation (which county/city)
- Calculations showing underpayment
Calculate what you’re owed:
- Correct minimum wage rate for your tier
- Total hours worked
- Total wages you should have received
- Difference between what you were paid and what you should have been paid
Step 2: Talk to Your Employer (If Safe)
Sometimes minimum wage violations result from mistakes or confusion about which tier applies. Consider:
- Pointing out the error in writing (email to HR or payroll)
- Requesting correction and back pay
- Keeping copies of all communications
If your employer retaliates (fires you, reduces hours, demotes you) for requesting minimum wage, this is illegal and gives you additional legal claims.
Step 3: File a Complaint with Oregon BOLI
Oregon Bureau of Labor and Industries (BOLI) enforces minimum wage laws.
File a wage claim:
- Online: boli.oregon.gov/wageclaim
- Phone: 971-673-0761
- Mail: Bureau of Labor and Industries, Wage and Hour Division, 800 NE Oregon Street, Suite 1045, Portland, OR 97232
What BOLI can do:
- Investigate your claim
- Order your employer to pay back wages
- Assess civil penalties against employer (up to $1,000 per violation per pay period)
- Collect payment on your behalf
Deadline: You must file within 2 years of the wage violation (3 years if the violation was willful).
Step 4: Consult an Employment Attorney
An employment attorney can help you:
- Calculate total damages including penalties and interest
- File a lawsuit if BOLI doesn’t resolve the issue
- Pursue additional claims (retaliation, wage theft, etc.)
- Negotiate settlement
Many employment attorneys work on contingency (you only pay if you win), making legal representation accessible.
What you can recover:
- Unpaid wages (difference between what you were paid and minimum wage)
- Liquidated damages (penalty equal to unpaid wages, potentially doubling your recovery)
- Civil penalties (up to $1,000 per violation per pay period paid to the state)
- Attorney’s fees and court costs
- Interest on unpaid wages
Protection from Retaliation
Oregon law prohibits retaliation against workers who:
- Complain about minimum wage violations
- File BOLI wage claims
- Participate in wage investigations
- Assert their wage rights
If your employer retaliates, you have additional legal claims for wrongful termination or retaliation.
Frequently Asked Questions
Does Portland have a separate city minimum wage?
No. Portland follows the Portland Metro tier ($15.95/hour in 2025) which applies to the urban growth boundary areas of Clackamas, Multnomah, and Washington Counties. Unlike some California cities, Portland has not enacted a separate city-specific minimum wage higher than the state Portland Metro rate.
What if I work remotely from home in Oregon for an out-of-state employer?
Oregon minimum wage applies based on the county where you perform work (your home location). If you live and work remotely from Bend, you receive Oregon’s Standard tier rate ($14.70/hour in 2025), not federal minimum wage or the minimum wage of the state where your employer is located.
Can my employer pay me less if I receive benefits like health insurance?
No. Your employer cannot reduce your wages below minimum wage to offset the cost of providing benefits. Minimum wage is the absolute minimum cash wage you must receive, regardless of benefits.
What if my employer rounds my hours down?
This may violate minimum wage and overtime laws. Employers must pay for all time worked. If your employer consistently rounds down (e.g., you work 8.9 hours but are paid for 8.0), this is wage theft. Small amounts add up over time and can result in significant underpayment.
Do commission-based workers receive minimum wage?
Yes. If you’re paid on commission, your total earnings divided by total hours worked must still equal or exceed minimum wage.
Example: You work 40 hours and earn $400 in commission in Marion County (Standard tier, $14.70/hour).
- Commission: $400
- Hours: 40
- Average hourly rate: $10.00/hour
- This violates minimum wage (should be $14.70/hour minimum)
- Employer owes additional $188 ($14.70 × 40 = $588 minimum)
Can my employer make me sign an agreement accepting less than minimum wage?
No. Minimum wage is a legal requirement that cannot be waived by agreement. Any contract, agreement, or waiver saying you accept less than minimum wage is void and unenforceable. Your employer still owes you minimum wage regardless of what you signed.
Oregon Minimum Wage Resources
Oregon Bureau of Labor and Industries (BOLI)
Wage and Hour Division
- Website: boli.oregon.gov
- Wage Claim Hotline: 971-673-0761
- File Wage Claim: boli.oregon.gov/wageclaim
BOLI provides:
- Official minimum wage rates and updates
- Workplace posters (employers must display these)
- Wage claim forms and assistance
- Investigation and enforcement
Free Legal Assistance
Legal Aid Services of Oregon
- Free legal help for low-income workers
- Phone: 1-800-228-4257
- Website: lasoregon.org
Oregon State Bar – Lawyer Referral Service
- Find an employment attorney
- Phone: 503-684-3763
- Website: osbar.org
Related Oregon Employment Topics
- Oregon Wrongful Termination: Know Your Rights
- Oregon Overtime Laws: When You’re Entitled to 1.5x Pay
- Oregon Unpaid Wages: How to Recover What You’re Owed
- Oregon Final Paycheck Requirements
Get Help with Oregon Wage Violations
Not sure if you’re being paid the correct minimum wage? Think your employer owes you back wages? Get a free consultation from an employment law expert who can evaluate your situation.
Oregon’s three-tier minimum wage system can be confusing, but you deserve to be paid fairly. Understanding your rights is the first step toward recovering unpaid wages.
Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. Minimum wage rates and regulations are subject to change. For the most current rates, visit the Oregon Bureau of Labor and Industries website. For advice specific to your situation, please consult with a licensed employment attorney in Oregon. Employment Law Aid is not a law firm and does not provide legal representation.