Oregon MINIMUM WAGES

Oregon State Minimum Wage for 2025

As of July 1, 2024, Oregon increased the state minimum wage rate to $14.70 per hour. This increase is part of the state’s annual adjustment process in line with Consumer Price Index (CPI) and inflation. However, Portland metro and non-urban cities have different minimum wage rates.  

Oregon does not have a separate minimum wage law for tipped workers. They are entitled to the same minimum wage as non-tipped workers. Employers can make deductions such as taxes, if legally required, mutually agreed upon, or if they benefit the employee.   

Minimum Wages in Oregon Cities

The table below details the minimum wage rates observed by all cities in Oregon.  

Threshold For Employees Exempt

In Oregon, employee classification follows The Fair Labor Standards Act (FLSA), dividing workers into exempt and non-exempt categories. 

• Non-exempt employees are entitled to the state minimum wage and must receive overtime pay at 1.5 times their regular rate for hours worked beyond 40 per week. 

• Exempt employees, typically salaried workers, must earn at least $844 per week or $43,888 annually in 2024 to qualify for exempt status. 

Exempt employees are not directly affected by minimum wage rates, but changes in these rates can influence their salary thresholds, potentially creating pressure on employers to raise the bar. This can even lead to wage compression between exempt and nonexempt employees. As of now, Oregon’s salary threshold for exempt employees is aligned with the federal standards, i.e. requiring workers to earn at least $844 per week.  

Historical Data of Oregon Minimum Wages 

Oregon was one of the first states in the U.S to introduce minimum wage laws. In 1913, it laid down rules to ensure fair pay to everyone, initially covering only women and minors. Over time, Oregon expanded its minimum wage coverage to include more categories of workers.  

In 1963, the state aligned its hourly wages with federal standards, but by 1989, it announced a separate and higher minimum wage. A landmark bill passed in 2016 introduced a tiered wage system based on geographic regions, to address inflation, local cost-of-living differences, and reduce hand-to-mouth survival situation. In 2022-2023, Oregon further increased wage rates to account for inflation and Consumer Price Index (CPI).  

These gradual changes over the years highlight Oregon’s proactive approach to labor rights and economic welfare. The table below further details minimum wage changes since 1968. 

* – Under the FLSA, the two rates shown in 1968, 1970, and 1976 reflect the former multiple-track minimum wage system in effect from 1961 to 1978.

Source: https://www.dol.gov/agencies/whd/state/minimum-wage/history

Exemptions In Minimum Wages of Oregon  

While Oregon minimum wage laws apply to all workers, certain exemptions apply to special workers. These include: 

• Salaried workers employed by private companies, state, and federal government. 
• Workers with disabilities may be entitled to receive subminimum wages under specific conditions.  
• Young workers and student learners. 
• Individuals in apprenticeship programs or working as trainees. 
• Agricultural workers. 
• Interns and volunteers, particularly working in non-profit or educational organizations.