Oregon's three-tier minimum wage law (ORS 653.025, originally Senate Bill 1532 of 2016) sets a higher Portland Metro rate for work performed inside the urban growth boundary covering parts of Multnomah, Washington, and Clackamas counties. The current rate (July 1, 2025 to June 30, 2026) is $15.45 per hour, increasing to $15.95 on July 1, 2026. Oregon law preempts cities from setting their own minimum wage (ORS 653.017).
Oregon's minimum wage statute (ORS 653.025) was rewritten by Senate Bill 1532 (2016) to create three geographic tiers: (1) Portland Metro -- inside the Metro urban growth boundary covering portions of Multnomah, Washington, and Clackamas counties; (2) Standard counties -- most other counties; (3) Nonurban counties -- 18 designated rural counties. Annual increases on July 1 are tied to U.S. CPI-U. The Bureau of Labor and Industries (BOLI) administers the law. As of July 1, 2025 the rates are: Portland Metro $15.45/hour, Standard $14.20/hour, Nonurban $13.20/hour. Effective July 1, 2026 the rates increase to: Portland Metro $15.95/hour, Standard $14.70/hour, Nonurban $13.70/hour. The applicable rate is determined by where the employee physically performs the work, not where the employer is headquartered. ORS 653.017 ('Local minimum wage law preempted') expressly preempts any city or county from enacting a higher minimum wage than the state -- Portland may not set its own city minimum wage. There is no separate tipped or training subminimum wage in Oregon; tipped employees must receive the full applicable hourly wage and may not have tips counted toward wages. Workers under 18 may be paid the standard adult rate, but federal youth opportunity wages do not apply.
Paying less than the Portland Metro minimum wage ($15.45/hr in 2025-26, $15.95/hr starting July 1, 2026) violates ORS 653.025 and is enforceable through BOLI wage claims or private civil action under ORS 653.055. Penalties include payment of back wages, an equal amount as liquidated damages, attorney fees, and BOLI civil penalties up to $1,000 per violation. Counting tips toward wages is a separate violation.
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