Oregon’s automatic minimum wage for non-exempt employees is set to increase on July 1, 2025. This minimum wage increase is calculated by the Oregon Bureau of Labor and Industries’ (BOLI) Labor Commissioner. In April, the Labor Commissioner determined a 2.4 percent increase was appropriate using the annual rise in the U.S. Consumer Price Index. This will result in 35-cent minimum wage increases throughout the State, to take effect at the beginning of July.
New Minimum Wage Increases in Oregon
The minimum wages will be as follows:
Portland Metro Area
The Portland metro minimum wage is currently $15.95 per hour and will increase to $16.30 per hour. This applies to the parts of Clackamas, Multnomah, and Washington counties that are within the urban growth boundary. Employers can check if they are within the urban growth boundary using this search feature.
Oregon’s Standard
The standard minimum wage is currently $14.70 per hour and will increase to $15.05 per hour. This applies to employers outside the urban growth boundary in the following counties: Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, Yamhill, and parts of Clackamas, Multnomah, and Washington.
Nonurban Counties
The nonurban minimum wage is currently $13.70 per hour and will increase to $14.05 per hour. The nonurban counties are Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler.
How to Determine the Applicable Minimum Wage Based on Employee Work Location
Employees qualify for a minimum wage zone if they work in a county or within the urban growth boundary for 50 percent or more of the work they perform for their employer each week. Employees who do not work at least 50 percent of the pay period in any fixed location must be paid the rate applicable to the region where the work was performed. To the extent the employee performs work in more than one region, an employer may track the hours worked in each region and pay the corresponding regional rates. Alternatively, employees may be paid at the highest of the regional rates applicable to the their work in that pay period.
Key Takeaways about New Minimum Wage Laws for Oregon Employers
Oregon employers should evaluate the potential impact this change will have on their employees and ensure all non-exempt employees are paid at least the applicable minimum wage as of July 1, 2025. Once these changes go into effect, employers should also obtain and display an updated minimum wage poster at their worksites, which will be available on BOLI’s website. If employers have not obtained updated worksite posters recently, now is a good time to do so, as other legal notices and requirements have been added in the past year.
This article is provided for informational purposes only—it does not constitute legal advice and does not create an attorney-client relationship between the firm and the reader. Readers should consult legal counsel before taking action relating to the subject matter of this article.
