HOURLY WAGE INDEX
Let’s talk wages in Oregon
What is the minimum wage in Oregon?
As of January 1, 2023, the minimum wage in Oregon is $15.45 per hour for employers with 25 or fewer employees, and $14.75 per hour for employers with 26 or more employees. The Oregon minimum wage is set to increase again in July of 2023. This wage increase will vary depending on county but the Portland minimum wage for example will it will jump up from $13.50 all the way to $14.75. The standard counties outside of the Portland metro area will be adjusted based on the consumer price index.
What is the average wage in Oregon?
The average hourly wage in Oregon was $32.07. However, this can vary depending on factors such as location, industry, and job title. For example, the average hourly wage for jobs in the Portland metropolitan area is generally higher than in other parts of the state. Additionally, average wages in certain industries, such as technology and healthcare, tend to be higher than in other industries.
What is the living wage in Oregon?
A guide to hourly labor laws in Oregon
- Standard Minimum Wage: $13.70 in non-urban areas. $14.70 in standard areas. $15.95 in Portland metro (Oregon.gov) (ORS § 653.025).
- Tipped Minimum Wage: Standard minimum wage. Tip credits are illegal (Oregon.gov) (ORS § 653.025).
- Overtime: Hours exceeding 40 in a fixed week are overtime, paid at 1.5 times the regular rate (ORS § 653.261) (29 US Code § 207) (DoL).
- Meal Breaks: A 30-minute meal break when 6+ hours are worked. An uninterrupted break can be unpaid. (Or. Admin. R. 839-020-0050). Federal law allows unpaid, non-working, bonafide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL).
- Rest Breaks: A paid 10-minute continuous break for every four hours worked, or major fraction thereof (Or. Admin. R. 839-020-0050). Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18).
- Wage Deductions: Only those required by law, such as taxes, and those authorized by the employee in writing. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (ORS § 652.610) (29 C.F.R. § 4.168) (29 US Code § 203).
- Final Paychecks:
- Termination: By the end of the next business day.
- Resignation with 48+ hours notice: Paid by the end of the last business day worked, with exceptions.
- Resignation without notice: Within five business days or your next regular payday, whichever is first (Oregon.gov) (ORS § 652.140).
- Wage Payment Frequency: Regular paydays occurring at least every 35 days (ORS § 652.120).
- Paid Sick Leave:
- 10+ employees: At least 40 hours of paid sick leave annually.
- Smaller employers: At least 40 hours of unpaid sick leave per year.
- Accrual rate: One hour for every 30 hours worked (ORS § 653.606).
- Paid Family and Medical Leave: Oregon's Paid Family and Medical Leave Insurance program provides up to 12 weeks of paid leave (14 weeks for pregnancy-related leave). This is in addition to the federal FMLA, which provides up to 12 weeks of unpaid leave (Oregon.gov) (ORS § 657B.020) (FMLA).
- Maximum Daily and Weekly Hours for Children Under 16:
- School session: No working during school hours; up to three hours per day and 18 hours per week.
- Non-school session: Up to eight hours per day and 40 hours per week.
- Working hours: Only between 7 a.m. and 7 p.m., extended until 9 p.m. June 1 through Labor Day. Limited exceptions (OR SoS) (ORS § 653.315) (Or. Admin. R. 839-021-0072) (29 C.F.R. § 570.35).
- Maximum Daily and Weekly Hours for Children 16 and 17: Up to 10 hours per day and 44 hours per week (OR SoS) (ORS § 653.315) (Or. Admin. R. 839-021-0072) (29 C.F.R. § 570.35).
Frequently asked questions
What is the difference between gross wages and net wages?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
What is a good hourly wage?
This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area. Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.
Offering competitive pay is one of my top priorities—what other resources do you have that might help?
We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:
- Short, easy to understand job descriptions
- Mobile-friendliness
- Quick communication
- Streamlined interview stages
Resources
Become a hiring and onboarding expert.
We're here to help!
A Workstream hiring specialist can help you identify high impact ways to improve your applicant experience, and even help you determine what is a good hourly wage for your location and business.