Municipality Minimum Wage Laws
Oregon doesn’t allow cities to set independent minimum wages, instead addressing the issue with a three-tiered system that accounts for the Portland metro area, urban Oregon, and rural Oregon areas.
Urban Oregon is considered any area not specifically carved out as the Portland metro area or a non-urban county.
The urban Oregon minimum wage is usually referred to as the standard minimum wage for the state.
As of July 1, 2019, the standard minimum wage rate is $11.25 per hour and will increase by 75 cents each year through July 2022.
Starting in July 2023, there will be an annual minimum wage increase evaluation using a formula tied to the Consumer Price Index rate. Those CPI-tied rate changes will continue annually from that point on barring future legislative changes.
The Portland metro area minimum wage applies to employers within the designated urban growth boundary (UGB) of Portland.
Oregon provides a map lookup tool and a static map of the UGB for employers online.
To account for higher costs of living, the minimum wage in the Portland metro area is $12.50 per hour as of July 1, 2019, and will increase annually by 75 cents per hour through 2022.
Starting July 2023, the Portland metro rate will be set at $1.25 per hour more than the standard Oregon rate and will adjust each year as the Oregon standard rate adjusts.
While Portland is the only city with a metropolitan service district as of 2019, the legislation allows for this metro minimum wage to be applied to other cities should they be designated as metropolitan service districts.
Oregon lists 18 counties as designated non-urban counties.
The minimum wage rate for these counties is $11.00 per hour as of July 1, 2019.
As with the other minimum wage increases, it will increase each July until 2023. However, the rate is increasing by 50 cents per hour during that time instead of the 75 cents per hour elsewhere.
As of July 2023, the rate will be set at $1 per hour less than the standard Oregon minimum wage and adjust each July accordingly.
As of 2016 legislation, the counties included as non-urban counties are Baker, Klamath, Coos, Lake, Crook, Malheur, Curry, Morrow, Douglas, Sherman, Gilliam, Umatilla, Grant, Union, Harney, Wallowa, Jefferson, and Wheeler.