In the United States of America, Federal law mandates a minimum wage for workers per hour. Regardless of the company or business size, the employer has to pay the employee the least amount of money in exchange for their work hours and enough to live life.
The intention of setting a limit to the minimum wage workers was to preserve workers’ rights from maltreatment as a company will always try to pay less to their workers.
Nevertheless, the upward trend of living costs may cause the workers to have trouble living with their salary.
Therefore, the Fair Labor Standards Act (FLSA) revises the remuneration yearly so that the workers receive an equitable and fair part of the profits their employer is earning.
Although employers should maintain Federal Law everywhere in the United States, it greatly varies from one state to another. This article contains everything you need to know about the minimum wage in Oregon.
What is the Minimum Wage in Oregon?
According to the U.S. Department of Labor law, the current minimum standard wage in Oregon in 2023 is $13.50 per hour. The amount is considered the paycheck for workers working in Standard areas in Oregon. However, compared to the standard minimum wage, in nonurban counties, the minimum wage is lower while it is higher in the Portland metro area. Another factor worth mentioning is that the location you work in, Oregon is a factor to consider when negotiating your salary with your employer.
Oregon Bureau of Labor & Industries states recently revised and increased the minimum wage as the following chart:
Employees need to pay for Non-Urban workers minimum: $12.50 hourly,
Employees need to pay for Standard workers minimum: $13.50 hourly,
Employees need to pay for Portland metro workers minimum: $14.75 hourly.
The minimum wage of Oregon will be again revised on July 1, 2023.
The counties under the mentioned area are below:
- Non-urban: Coos, Baker, Crook, Douglas, Curry, Grant, Harney, Gilliam, Klamath, Lake, Jefferson, Morrow, Malheur, Umatilla, Union, Sherman, Wallowa, and Wheeler.
- Standard: Clatsop, Deschutes, Benton, Hood River, Jackson, Columbia, Josephine, Lane, Linn, Lincoln, Marion, Polk, Wasco, Yamhill, and Tillamook counties.
- Portland-metro: Parts of Multnomah, Clackamas, and Washington.
They may work in packing plants, factories, canneries, sawmills, logging camps, and shingle mills. However, the wage may vary depending on the employee types, such as student & minor or tipped employee.
However, the minimum wage for workers who receive cash tips, such as; servers and bartenders, has remained the same. Even when tip cash is incorporated, tipped employees are assured of earning the minimum wage by state law.
1. Subminimum Wage
Mostly, student learners, trainees, and people with disabilities will receive a reduced salary than the minimum wage of Oregon. The State wage law fixed the following pay rate for a year for this category as well.
- Students and Learners: In some non-urban counties, the amount is $10.63; in others, the Standard rate is $11.48. And in Portland Metro, the fee is $12.54.
- Disabled employees: Till June 30, 2023, employees with disability are compensated at $12.50. However, they must issue a certificate for paying them the subminimum wage.
2. Oregon Weekly Minimum Wage
If an employee is working under the minimum wage of $13.50 on an hourly basis, they will earn $540 per week in the Standard industrial areas. However, they will need to work 7-8 hours per 5 days or at least 40 hours weekly.
Similarly, employees living in non-urban areas should receive at least $500 per week from their employees, whereas workers in Portland metro can ask for $590.
3. Oregon Overtime Minimum Wage
Since the increment of the hourly wage for minimum wage earners, the overtime wage has also increased. According to state law, companies must pay 1.5 times the hourly pay for working more than 40 hours weekly.
Therefore, the workers in Non-Urban, Standard, and Portland metro areas should ensure that they are receiving an extra wage as their overtime payment with the base pay.
After adding the overtime rate, the standard minimum wage is $20.25, $18.75 in some non-urban counties, and $22.125 in Portland Metro.
Non-urban counties' minimum wage will remain $1 lower than the standard rate. Regardless of whether the minimum wage is raised, it will remain $1.25 over the standard rate in Portland Metro.
How is Oregon Minimum Wage Different from the Federal Minimum Wage?
The federal minimum wage is the lowest rate an employer must pay an individual employee under the Fair Labor Standards Act (FLSA).
According to the United States of America Federal minimum wage, the lowest wage should be around $7.25. It is already stated that the Standard area minimum salary is $13.50 for Oregon, almost double the Federal minimum wage.
Nonetheless, the Federal Minimum wage for tipped employees should be at least $2.13 per hour, whereas workers in Oregon can ask for a $12.75 cash wage under the Oregon State minimum rate.
It is also stated that “Employers to pay tipped employees full state minimum wage before tips.”
Who Qualifies for Minimum Wage?
The FLSA (Fair Labor Standards Act) stated in Fact Sheet #14A that the minimum wage applies to employees at businesses with an annual gross sales or business volume of approximately $500,000. It moreover applies to employees or entrepreneurs involved in interstate commerce or the manufacturing of commodities for exchange, such as those working in communications and transportation.
The tipped minimum wage in Oregon is also similar to the State minimum wage as they regularly receive such money in the hospitality industry. It is also closely tied to the food server and bartender business.
Therefore, under the State wage law, any job provider must pay their workers $12.50, $13.50, or $14.75 even though they are receiving tips.
Therefore, workers in these areas will qualify for the minimum wage. Other than these sectors, there are also a few more occupations, such as
- Guards,
- Maintenance employees
- Janitors,
- Domestic workers.
Historical Change of Minimum Wage in Oregon
Senate Bill 1532 proposes a series of yearly minimum wage increases beginning July 1, 2016, and ending July 1, 2022.
According to the state minimum wage chart, Oregon's minimum wage will be changed annually starting July 1, 2023, depending on the Consumer Price Index.
Not long ago, Oregon’s minimum wage was raised to almost double the Federal wage rate. Since the minimum wage rate in 1963, the salary has been increasing slowly but gradually.
Before 1990, the minimum wage salary per hour stayed below 5.0 dollars per hour, and the Government is thinking of increasing it up to 15 dollars by 2025.
Effective Date | Minimum Wage Per Hour |
January 1, 2023 | $13.50 |
July 1, 2022 | $13.50 |
July 1, 2021 | $12.75 |
July 1, 2020 | $12.00 |
July 1, 2019 | $11.25 |
July 1, 2018 | $10.75 |
July 1, 2017 | $10.25 |
July 1, 2016 | $9.75 |
FAQ
1. When did minimum wage start in Oregon?
In June 1913, the Industrial Welfare Commission in Oregon first implemented the minimum wage.
2. When was the last time the minimum wage was raised in Oregon?
Minimum wage in Oregon was updated on July 1, 2022. It was the seventh annual increased wage since 2016.
3. What was Oregon’s minimum wage in 1980?
In 1980, the minimum wage was $2.90, which has risen to $13.5.
