What Is the Minimum Wage in Oregon?

Ben Steele  | 

2020 Minimum Wage in Oregon: $11.25 Per Hour

The minimum wage in Oregon is currently subject to annual increases every July. It is already significantly more than the federal minimum wage of $7.25 per hour, but is still lower than a select few other states that have made minimum wage increase commitments, such as California. 

The minimum wage in Oregon is increasing to account for increases in the U.S. City Average Consumer Price Index.

However, there are some exceptions to the state’s baseline minimum wage rate, due to how some areas are more populous and urban than others across the state. Namely, the Portland metropolitan area (or more simply, “Metro”) and counties classified as “non-urban” have slightly different minimum wage rates.

Portland Metro Minimum Wage: $12.50 per hour

Within the urban growth boundary of the metropolitan area of Portland, the minimum wage of $12.50 is higher than the state minimum wage.

There is no subminimum wage in Oregon, however, there are certain exemptions to minimum wage law that may apply to: government workers, certain agricultural/animal husbandry workers, domestic workers such as childcare providers, students working for their educational institution, and people with disabilities.

Non-Urban Counties Minimum Wage: $11.00 Per Hour

Some rural counties in Oregon have a minimum wage rate of $11 an hour. These counties — such as Baker, Klamath, and Wheeler — are considered “non-urban” by the minimum wage legislation, and have a lower minimum wage than the rest of the state. 

Tipped: $11.25 Per Hour, With $12.50 Metro, and $11.00 Non-Urban Wages

Oregon state law prohibits the use of tip credits for the calculation of minimum wage. That means that employers of tipped employees must pay the minimum wage rate applicable in their location calculated before tips. Tips may not be used to reduce actual cash earnings below minimum wage rates, unlike tipped minimum wage law in other states.

Weekly: $450 Base, $500 Metro, $440 Non-Urban

Oregon employees who earn the standard minimum wage can expect an income of $450 for a single week, while Portland Metro minimum wage workers can expect $500, and non-urban workers can expect $440. The weekly minimum wage rates are calculated based on 40 hours of work per week at each minimum rate of pay in the state. These are pre-tax, pre-deductions numbers, so the actual cash take-home of a minimum wage employee will vary.

Annually: $23,400 Base, $26,000 Metro, $22,880 Non Urban

Oregon employees who earn the standard minimum wage can expect an income of $23,400 for a full year of work, while Portland Metro minimum wage workers can expect $26,000, and non-urban workers can expect $22,880. The annual minimum wage rates are calculated by multiplying the weekly wage rate for a 40-hour workweek by 52 weeks in a year. These numbers are pre-tax and pre-deductions, so the final numbers on a paycheck may vary.

Overtime: $16.12 Base, $18 Metro, $15.37 Non Urban

Overtime pay in Oregon must be at least one plus one-half of the minimum wage rate. Certain workers, such as salespeople, truck drivers, agricultural workers, movie theater workers, and salaried workers (in some cases) are exempt from overtime, but not minimum wage laws. Workers earn overtime if they work for more than 40 hours in a week.

Oregon Minimum Wage Increase News

In 2016, the Oregon legislature passed a bill to see the minimum wage increase at a set rate of $0.50 per year between 2016 and 2019, then by $0.75 per year between 2019 and 2023. After 2023, the minimum wage in Oregon will be tied to the Consumer Price Index, published by the U.S. Bureau of Labor Statistics.

The increases occur every July 1. On July 1, 2020, the minimum wage in Oregon will rise to $12 per hour standard, $13.25 per hour in the Metro area, and $11.50 per hour in non-urban counties.

Image Source: https://depositphotos.com/

Ben Steele is a writer, theatre(re) professional, and nonprofit administrator. He was born in England, spent his teen and early 20s in Canada, and now lives in America. Please excuse his occasionally confused voice and the odd recalcitrant u after an o.