On July 1, 2025, Oregon’s automatic minimum wage increase for non-exempt employees will take effect. Under Oregon state law, the Oregon Bureau of Labor and Industries (BOLI) calculates an annual increase to the minimum wage rate based on the Bureau of Labor Statistics’ Consumer Price Index from March of the preceding year to March of the year in which the calculation is made. Last month, BOLI Commissioner Christina Stephenson announced the following 35-cent increases throughout the state:
- The Portland metro area’s minimum wage will increase from $15.95 to $16.30 per hour. This area includes Multnomah County and parts of Washington and Clackamas Counties within the urban growth boundary.
- The “standard minimum wage” will increase from $14.70 to $15.05 per hour. This area includes Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, Yamhill, and parts of Clackamas, Multnomah, and Washington Counties outside the urban growth boundary.
- Non-urban counties’ minimum wage will increase from $13.70 to $14.05 per hour. This area includes Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler Counties.
As a reminder, employers should pay employees the minimum wage for the county where 50% or more of the employee’s work is performed each week. Employees who do not work at least 50% 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 employee’s work in that pay period.
Oregon employers should ensure all non-exempt employees are paid at least the applicable minimum wage as of July 1. Employers should also obtain and display an updated minimum wage poster at their worksites, which is available at BOLI’s website.
