Oregon Minimum Wage Increases

Oregon’s Bureau of Labor and Industries (BOLI) recently announced the precise annual increase to Oregon’s minimum wage rates, which will go into effect on July 1, 2023. Oregon’s minimum wage rates will increase as follows:

• Standard Minimum Wage: $14.20 per hour (up $.70 from $13.50)
• Portland Metro Minimum Wage: $15.45 per hour
• Non-Urban Minimum Wage: $13.20 per hour

The Portland Metro Minimum Wage and Non-Urban Minimum Wage are $1.25 greater than and $1.00 less than the standard minimum wage, respectively.

For employers who may not be familiar with the two subcategories of Oregon’s minimum wage, the “Portland Metro” minimum wage applies within the Portland Metropolitan Service District, comprised of Washington, Clackamas, and Multnomah counties. Employers within this area will be required to pay the higher minimum wage. In contrast, employers with employees working in “Non-Urban” counties will pay the lower minimum wage. Non-Urban counties consist of half of Oregon’s 36 counties:

1. Baker
2. Coos
3. Crook
4. Curry
5. Douglas
6. Gilliam
7. Grant
8. Harney
9. Jefferson
10. Klamath
11. Lake
12. Malheur
13. Morrow
14. Sherman
15. Umatilla
16. Union
17. Wallowa
18. Wheeler

Employees working in areas other than Portland Metro and the Non-Urban Counties must be paid at least the Standard Minimum Wage Rate. Employers should ensure that their payroll systems are updated accordingly, and budget for these mandatory increases for roll-out on July 1, 2023.

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