Oregon Statewide Rule
Oregon Tiered Minimum Wage Preempts Local Rates
Key Facts
- Measurement
- Three geographic minimum-wage tiers
- Measurement
- Local minimum wages preempted
- Measurement
- Annual July 1 inflation adjustment
- Measurement
- No tip credit allowed in Oregon
Summary
ORS 653.025 sets a three-tier statewide minimum wage and ORS 653.017 preempts cities and counties from adopting different local minimums.
653.017 Local minimum wage requirements; preemption; exceptions. (1) As used in this section: (a) "Local government" includes a county, city, district or other public corporation, authority or entity organized and existing under statute or city or county charter. (b) "Public employer" means a political subdivision of the State of Oregon, including counties, cities, districts, as defined in ORS 198.010 and 198.180, and public and quasi-public corporations. (2) Except as provided in subsection (3) of this section, the State of Oregon preempts all charter and statutory authority of local governments to set any minimum wage requirements.
Full Breakdown
Oregon uses a unique three-tier minimum wage geography under ORS 653.025: a Portland-Metro tier, a Standard tier, and a Nonurban tier covering specified rural counties. Annual increases on July 1 are tied to inflation under SB 1532 (2016). ORS 653.017 expressly preempts local governments from establishing minimum wages that differ from state law, ensuring uniform employer compliance. The Bureau of Labor and Industries enforces wage standards, posting requirements, and recordkeeping under ORS 653.045. Tip credits are not allowed, and most employees in Oregon must receive at least the applicable tier rate.
Violations & Penalties
Failing to pay the lawful minimum wage exposes employers to back wages, civil penalties, and BOLI enforcement actions.
Frequently Asked Questions
Can Portland set its own minimum wage?
Are tipped workers paid less?
Sources
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