Minimum Wage in Oregon

Oregon Leave Laws Mandates

Oregon’s leave law includes a complete framework of family leave options, combining federal protections (FMLA), state-specific unpaid leave (Oregon Family Leave Act, OFLA), and a paid leave program (Paid Leave Oregon).

During the last legislative session, several laws were amended, most notably Senate Bill 1515, which takes effect on July 1, 2024. These amendments have reconciled the protections of these laws, reduced the overlap between them, and clarified the eligibility for employees and benefits. Oregon employees now can access both paid and unp

As of July 1, 2025, Oregon increased the state minimum wage rate to $15.05 per hour. This increase is part of the state’s annual adjustment process in line with Consumer Price Index (CPI) and inflation. However, Portland metro and non-urban cities have different minimum wage rates.

• Portland metro area minimum wage is $16.30 per hour (inside the urban growth boundary)
• Standard counties minimum wage is $15.05 per hour
• Non-urban counties minimum wage is $14.05 per hour

Oregon does not have a separate minimum wage law for tipped workers. They are entitled to the same minimum wage as non-tipped workers. Employers can make deductions such as taxes, if legally required, mutually agreed upon, or if they benefit the employee.

Minimum Wages in Oregon Cities

The table below details the minimum wage rates observed by all cities in Oregon.  

Threshold For Employees Exempt

In Oregon, employee classification follows The Fair Labor Standards Act (FLSA), dividing workers into exempt and non-exempt categories. 

• Non-exempt employees are entitled to the state minimum wage and must receive overtime pay at 1.5 times their regular rate for hours worked beyond 40 per week. 

• Exempt employees, typically salaried workers, must earn at least $875 per week or $45,500 annually in 2025 to qualify for exempt status.

Exempt employees are not directly affected by minimum wage rates, but changes in these rates can influence their salary thresholds, potentially creating pressure on employers to raise the bar.

This can even lead to wage compression between exempt and nonexempt employees.

As of now, Oregon’s salary threshold for exempt employees is aligned with the federal standards, i.e., requiring workers to earn at least $875 per week.

Historical Data of Oregon Minimum Wages 

Oregon was one of the first states in the U.S to introduce minimum wage laws. In 1913, it laid down rules to ensure fair pay to everyone, initially covering only women and minors. Over time, Oregon expanded its minimum wage coverage to include more categories of workers.  

In 1963, the state aligned its hourly wages with federal standards, but by 1989, it announced a separate and higher minimum wage. A landmark bill passed in 2016 introduced a tiered wage system based on geographic regions, to address inflation, local cost-of-living differences, and reduce hand-to-mouth survival situation. In 2022-2023, Oregon further increased wage rates to account for inflation and Consumer Price Index (CPI).  

These gradual changes over the years highlight Oregon’s proactive approach to labor rights and economic welfare. The table below further details minimum wage changes since 1968. 

* – Under the FLSA, the two rates shown in 1968, 1970, and 1976 reflect the former multiple-track minimum wage system in effect from 1961 to 1978.

Source: https://www.dol.gov/agencies/whd/state/minimum-wage/history

Exemptions In Minimum Wages of Oregon  

While Oregon minimum wage laws apply to all workers, certain exemptions apply to special workers. These include: 

• Salaried workers employed by private companies, state, and federal government. 
• Workers with disabilities may be entitled to receive subminimum wages under specific conditions.  
• Young workers and student learners. 
• Individuals in apprenticeship programs or working as trainees. 
• Agricultural workers. 
• Interns and volunteers, particularly working in non-profit or educational organizations. 

aid leave for various family, medical, and safety purposes, with many instances of job protection and income replacement.

Oregon Sick Leave Law

According to Oregon law, all employers are required to provide Paid Sick Leave (PSL) to employees. Employers must provide PSL by state law of up to 40 hours per year. Employees begin to accrue sick leave from the first day of employment. They may use sick leave for the following reasons: illness of the employee or a family member, medical appointments, preventive care, or reasons related to domestic violence, harassment, or a public health emergency. Some employees are not entitled to sick leave (Independent contractors, families, small businesses, etc).

Oregon PTO Law

Oregon does not mandate general Paid Time Off (PTO) beyond sick leave. However, employers may offer PTO policies that combine vacation, personal, and sick days. If PTO is provided, it must comply with Oregon’s sick leave law, meaning employees must be able to use at least 40 hours per year for sick leave purposes.

Oregon FMLA Law

Oregon employers are subject to the federal Family and Medical Leave Act (FMLA), which provides up to 12 weeks of unpaid, job-protected leave for eligible employees at companies with 50 or more employees. FMLA covers serious health conditions, family care, parental leave, and certain military family needs. FMLA leave may run concurrently with state leave when applicable.

Oregon Paid Family Leave

Oregon offers a maximum of 12 weeks of paid leave in 52 weeks for family leave, medical leave, or safe leave. Employees who have a pregnancy, childbirth or related medical condition can take up to 14 weeks. Employees must have earned at least $1,000 in Oregon in their base year to be eligible to take leave. The benefit will pay a wage replacement according to income, and job protection is also included.

Oregon Bereavement Leave

Oregon’s OFLA provides up to 2 weeks of unpaid bereavement leave per family member, up to a maximum of 12 weeks per year, for eligible employees at employers with 25+ employees. This leave covers the death of a family member and must be taken within 60 days of receiving notice of the death.

Oregon Maternity and Paternity Leave

Eligible employees may take up to 12 weeks of unpaid leave under OFLA for pregnancy, childbirth, adoption, or bonding with a new child. Paid Leave Oregon also covers these events, offering up to 12 weeks of paid leave (14 weeks for pregnancy-related medical conditions). Both laws provide job protection, and leave may be taken by mothers and fathers.

Oregon Parental Leave

Parental leave is available under both OFLA (unpaid) and Paid Leave Oregon (paid), covering bonding with a newborn, newly adopted, or newly placed foster child. Eligibility and duration align with the rules above.

Oregon Military Leave

Oregon employees are protected under federal USERRA and state laws, allowing unpaid leave for military service, training, or deployment. Paid Leave Oregon also covers certain military family needs.

Oregon Domestic Violence Leave

Oregon law allows employees to take reasonable unpaid leave for issues related to domestic violence, harassment, sexual assault, or stalking. Paid Leave Oregon provides wage replacement for “safe leave” in these situations.

Oregon Leave Types, Eligibility and Duration