4/28/28 New Oregon Minimum Wage Rates Effective July 1, 2026

April 28, 2026

The Oregon Bureau of Labor and Industries (“BOLI”) Commissioner Christina Stephenson has announced new minimum wage rates that will go into effect July 1, 2026. 

Oregon automatically increases its standard minimum wage each year based on the Consumer Price Index (“CPI”) from March of the prior year to March of the current year. The CPI from March 2025 to March 2026 was 3.3%. The Portland Metro and Non-Urban minimum wage rates are set by statute at $1.25 more and $1.00 less than the standard minimum wage, respectively.

Accordingly, the following new minimum wage rates will go into effect on July 1, 2026:

•    Standard Minimum Wage – $15.55 per hour – Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, Yamhill counties, and parts of Clackamas, Multnomah, and Washington counties outside the “urban growth boundary.”

•    Non-Urban Minimum Wage – $14.55 per hour – Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties.

•    Portland Metro Minimum Wage – $16.80 per hour – Within the “urban growth boundary,” which includes parts of Clackamas, Multnomah, and Washington counties.

Employers can determine if an employee is working within the urban growth boundary by referring to this Urban growth boundary address lookup. Beginning June 15, 2026, BOLI will have minimum wage posters reflecting the new rates available free for download on its website.

Pay Equity Reminder

As minimum wage increases, employers should review their overall pay structure to avoid potential pay equity issues, including wage compression. Wage compression occurs when the pay gap between new hires and longer‑tenured employees shrinks to the point that longer-tenured employees earn the same (or nearly the same) as those just entering the role. This can unintentionally undermine a seniority‑based pay system. To maintain compliance under Oregon’s Equal Pay Act, employers should ensure any pay distinctions based on a bona fide factor—like seniority or experience—still hold after the new rates take effect.

Please contact Amy Angel (aangel@barran.com), Missy Oakley (moakley@barran.com), or your regular attorney at Barran Liebman if you have any questions.