Overview of Oregon's Minimum Wage Requirements
As of February 13, 2024, Oregon's minimum wage requirements are based on a three-tier system that varies by geography. The standard minimum wage rate is $14.20 per hour, effective from July 1, 2023. However, the minimum wage differs in the Portland Metro area and nonurban counties. In the Portland Metro area, workers earn $1.25 more than the standard rate, making their minimum wage $15.45 per hour. Conversely, in nonurban counties, the minimum wage is $1 less than the standard rate, which is $13.20 per hour.
Starting from July 1, 2024, the minimum wage rate will be adjusted annually based on the increase, if any, to the US City average Consumer Price Index for All Urban Consumers. The Portland Metro area will continue to have a minimum wage that is $1.25 over the standard minimum wage, and nonurban counties will have a minimum wage that is $1 less than the standard minimum wage.
Understanding Local Minimum Wage Variations
The minimum wage in Oregon varies depending on the specific location of work. For instance, in Multnomah County, Washington County, and parts of Clackamas County within the urban growth boundary, the minimum wage is $15.45 per hour. However, for areas outside the urban growth boundary in Clackamas County, the minimum wage is $14.20 per hour.
In Lane County, Marion County, Salem, and Eugene, the minimum wage is $14.20 per hour. In contrast, in Gresham and Hillsboro, which are part of the Portland Metro area, the minimum wage is $15.45 per hour. These rates are adjusted annually based on the US City average Consumer Price Index for All Urban Consumers.
Minimum Wage Eligibility and Exemptions
In Oregon state, all workers are generally eligible for minimum wage, with a few exceptions. The minimum wage applies to both adults and minors, regardless of whether they are paid by piece rate, per hour, by commission, or by the day. Their wages must add up to at least the minimum wage for each hour worked. Tips are separate and cannot be counted as wages.
However, there are exemptions to these requirements for certain “white collar” employees or “salaried exempt” employees, also referred to as the “Executive,” “Administrative” and “Professional” exemptions. These workers are not subject to minimum wage, overtime, and most working conditions requirements when they qualify for the exemption.
Minimum Wage Considerations and Compliance Tips
As a food business employer in Oregon State, it's critical to stay updated on the latest minimum wage legal and compliance considerations. The law requires that all workers, including those paid by piece rate, per hour, by commission, or paid by the day, must earn at least the minimum wage for each hour worked. Tips are separate and cannot be counted as wages.
Another key consideration revolves around tip pooling. The U.S Department of Labor (USDOL) issued a rule clarifying that managers and supervisors may only keep tips that they receive from customers directly for services that they provide "solely". However, due to increased scrutiny and enforcement by the USDOL, it's recommended that managers and supervisors do not keep any tips received during service if the establishment has a tip pool system in place.
FAQs
- What are the current minimum wage requirements in the Oregon state and trends? As of February 13, 2024, Oregon's minimum wage requirements are based on a three-tier system that varies by geography. The standard minimum wage rate is $14.20 per hour, effective from July 1, 2023. The minimum wage differs in the Portland Metro area and nonurban counties.
- Who is eligible for minimum wage in Oregon, and are there any exemptions? All workers are generally eligible for minimum wage in Oregon, with a few exceptions. The minimum wage applies to both adults and minors, regardless of whether they are paid by piece rate, per hour, by commission, or by the day. However, there are exemptions for certain “white collar” employees or “salaried exempt” employees.
Information Source Links
- Oregon Minimum Wage
- Oregon Minimum Wage Schedule
- Oregon Salaried Exempt Employees
- Oregon Labor Laws
- Oregon Restaurant & Lodging Association
Learn more about Local Food Delivery Trends and Insights
About Otter
- Increase revenue up to 10% with Marketing*
- Reduce storefront downtime by up to 50% with Live Alerts*
- Increase sales up to 50% with Digital Dine-In's QR code ordering*
- Reduce missed orders to less than 1% with Order Manager's Auto-Accept feature*
- Supercharge your food business with our all-in-one restaurant POS system*