Oregon preempts local minimum wages under ORS 653.025 but uses a three-tier regional system with Portland metro at the highest rate, indexed annually each July to CPI plus a fixed increment.
Oregon ORS 653.025 bars cities from setting their own minimum wage, but the state law itself splits Oregon into three regions: Portland metro (urban growth boundary), standard counties, and nonurban counties. The Portland metro rate is highest, currently $15.95 and rising to $16.30 on July 1, 2026, then indexed to CPI annually. Employers within the Portland UGB must pay the metro rate to all hours worked there even if the worker resides outside the boundary. Tipped workers receive full minimum wage, with no tip credit allowed under ORS 653.035.
Paying below the metro tier, applying a tip credit, or misclassifying workers to avoid the wage floor can result in BOLI wage claims, double-damages awards, and personal liability for officers under Oregon wage law.
See how Portland's minimum wage preemption rules stack up against other locations.
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