Oregon Restaurant Hourly Wage Law, Your Rights as a Worker in 2026

What is Oregon’s minimum wage for restaurant workers?

Oregon restaurant workers must be paid a minimum hourly wage that depends on where they work — $16.30 in the Portland metro area, $15.05 in standard counties, and $14.05 in non-urban counties for the period July 1, 2025 through June 30, 2026, under Oregon Revised Statutes § 653.025. Tips are completely separate and can never be used to lower that rate.

If you work in a restaurant in Oregon — waiting tables, bartending, running food, or washing dishes — you have some of the strongest wage protections in the country. Oregon does not allow tip credits. That means your employer must pay you the full minimum wage for every hour you work, no matter how much you make in tips.

But Oregon’s wage law has a detail that trips up a lot of workers and employers: the rate depends on where you work, not where you live. There are three different minimums for three different regions. Getting this wrong costs workers real money — and it happens more often than it should.

This article breaks down every Oregon restaurant worker’s rights under Oregon Revised Statutes § 653.025 — the state law that sets these rates — and explains what to do if your employer isn’t following the rules.

Oregon’s Three-Tier Minimum Wage System for Restaurant Workers

Oregon sets three minimum wage rates that apply to all workers — including restaurant employees — based on their work location. These rates run from July 1, 2025 through June 30, 2026 and are set by the Oregon Bureau of Labor and Industries (BOLI):

Region	Rate Per Hour	Counties Covered
Portland Metro	$16.30	Within the urban growth boundary — parts of Clackamas, Multnomah, and Washington Counties
Standard	$15.05	Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, Yamhill, and portions of Clackamas, Multnomah, and Washington outside the boundary
Non-Urban	$14.05	Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler Counties

The rate that applies to you is based on where you work, not where you live. If you work in multiple counties in a single week, you earn the rate for the county where you start and end your day, according to BOLI. If you regularly travel for work across county lines, your employer may pay the applicable rate for each county where you work.

Starting July 1, 2023, Oregon tied minimum wage increases to the Consumer Price Index (CPI) — meaning rates automatically adjust each July 1 based on inflation. BOLI announces the upcoming rates by April 30 of each year. The July 1, 2026 rates have not yet been announced at the time of publication.

Oregon Tip Laws: What Restaurant Workers Must Know

This is where Oregon stands out from most of the country — and it matters enormously for restaurant workers.

Oregon does not allow tip credits. Under Oregon law and specifically ORS 653.035(3), your employer cannot count your tips — even a single dollar — toward meeting the minimum wage requirement. You must receive the full minimum wage for every hour worked, completely separate from any tips you earn.

Here is what that means in practice for Oregon restaurant workers:

• Your tips belong entirely to you. Your employer cannot take them, claim them, or offset your hourly pay with them.
• You cannot agree to make less than minimum wage, even in writing. The agreement is void under Oregon law.
• Management and owners cannot participate in tip pools. Tips shared through a pool can only go to employees who regularly receive tips — not supervisors, managers, or the business owner.
• Non-tipped employees like dishwashers and cooks can participate in a tip pool — but only if the employer does not take a tip credit. Since tip credits are illegal in Oregon, this means back-of-house workers can legally share in pooled tips.
• Mandatory service charges are not tips. If your restaurant adds a mandatory service charge to large tables or events, that money is not legally a tip — it belongs to the employer unless they explicitly pass it to workers.
• Credit card processing fees can be deducted from credit card tips, but only at the exact percentage of the processing fee — no more.

Under the One Big Beautiful Bill Act, signed into law on July 4, 2025, tips and overtime are no longer subject to federal income tax through December 31, 2028, for workers in traditionally tipped roles. Employees in qualifying jobs can deduct up to $25,000 in tip income annually from their federal taxes. This is a federal tax benefit — it does not change your Oregon wage rights. Talk to a tax professional about how this applies to your specific situation.

Related article: War Powers Resolution Explained, What the 60-Day Limit Actually Means — and What Happens Now

Are You Being Paid the Right Amount? How to Check

If you want to know whether your employer is paying you correctly, here’s how to verify it quickly.

Step 1 — Find your work county. Use BOLI’s interactive map at oregon.gov/boli or look up your work zip code at getzips.com/zip.htm to confirm your county.

Step 2 — Check whether your location is inside the Portland Urban Growth Boundary. If it is, you earn $16.30 regardless of which county your employer operates in. The boundary lookup is available at oregonmetro.gov.

Step 3 — Calculate your hourly minimum. Match your county to the table above and verify your pay stub reflects at least that rate for every hour worked.

Step 4 — Check your total weekly pay. If you are paid by commission, piece rate, or any other method, your total pay divided by your total hours must still equal at least the minimum wage rate for your county.

If your total earnings for any week come up short of minimum wage when divided by hours worked, your employer owes you the difference — plus potential penalties. An employment discrimination attorney or wage claim specialist can help you calculate how much you are owed.

Workers who believe their rights under Oregon’s wage law have been violated can file a wage complaint directly with BOLI at complaints.boli.oregon.gov. There is no fee to file.

What Happens When Oregon Restaurant Employers Break the Rules

Oregon wage violations in the restaurant industry fall into a few predictable patterns — and each one carries real legal consequences.

Tip theft — when an employer, manager, or supervisor takes a share of pooled tips — violates both Oregon law and the federal Fair Labor Standards Act (FLSA). Employees who experience tip theft can recover the stolen tips, an equal amount in liquidated damages, and attorney’s fees if they pursue a claim.

Paying below minimum wage is the most common violation. Under ORS 652.150, employers who fail to pay wages owed on time face penalties of up to 30 days of the employee’s daily wages on top of the unpaid amount. Oregon does not require employees to prove the violation was intentional to collect these penalties.

Posting violations are often a sign of a problem employer. Oregon law requires every workplace to display the official BOLI minimum wage poster — in English and Spanish — in a location where all employees can see it. Failure to post is an administrative violation and can signal other compliance failures worth investigating.

If you have experienced unpaid wage theft at an Oregon restaurant, you may have grounds for a civil lawsuit in addition to a BOLI complaint. An unpaid wages lawsuit in Oregon state court can recover wages owed, penalty wages, and attorney’s fees — meaning legal representation often comes at no upfront cost to the worker. Guide to Unpaid Wages and Wage Theft Lawsuits allaboutlawyer.com

Your Rights as a Minor or Young Worker in an Oregon Restaurant

One question BOLI hears often: can a restaurant pay a teenager less than minimum wage?

The answer in Oregon is no. Oregon’s minimum wage is the same for workers of every age. Minors receive the same rate as adult workers — there is no youth wage, training wage, or learner rate below the standard minimum. This applies even if the minor is in a school-to-work or vocational program, with one narrow exception for student learners in accredited programs approved by BOLI under Oregon Admin. Rule 839-020-0025.

For most Oregon restaurant workers under 18 — hosts, bussers, dishwashers, food runners — the full minimum wage applies from day one.

Frequently Asked Questions

Q: What is the statute of limitations for an unpaid wage claim in Oregon? 

 Under Oregon law, workers have six years to file a civil claim for unpaid minimum wages. For a BOLI administrative complaint, the general rule is two years from the date of the violation. Filing sooner is always better — evidence and records become harder to recover over time. An employment attorney can advise which path is right for your situation.

Q: How long does it take BOLI to resolve a wage complaint? 

 BOLI wage claim investigations typically take several months, depending on the complexity of the case and BOLI’s current caseload. Civil lawsuits filed independently can take longer but may recover higher amounts. A consumer rights lawyer focusing on employment claims can often estimate timelines based on your specific facts.

Q: Do I need a lawyer to file a wage complaint in Oregon? 

 No. You can file directly with BOLI at no cost at complaints.boli.oregon.gov. However, if your unpaid wages exceed a few hundred dollars, or if you believe other workers are also affected, an employment class action or individual civil claim through an attorney may recover significantly more — including penalty wages and attorney’s fees that BOLI administrative claims do not always capture. Most employment attorneys handle wage cases on contingency, meaning no upfront fee. How to Find an Employment Lawyer for Wage Claims — allaboutlawyer.com

Q: Can my restaurant require me to pool tips with coworkers who don’t get tips? 

Yes — in Oregon, back-of-house workers like cooks and dishwashers can legally participate in a tip pool, because Oregon does not allow tip credits. Federal law permits this arrangement when no tip credit is taken. However, managers, supervisors, and owners can never receive money from a tip pool regardless of how much they work on the floor. Any pool arrangement that sends tips to management violates both Oregon and federal law.

Q: What if I work split shifts across two counties with different minimum wage rates? 

 According to BOLI, delivery drivers and workers who travel between counties should be paid the rate for the county where they start and end their workday. If your work is split evenly, your employer can pay the applicable rate for each county worked. If you are unsure what rate applies to you, BOLI’s interactive map at oregon.gov/boli can help you confirm your county classification.

Legal Terms Used in This Article

Tip credit: A legal mechanism, allowed in many U.S. states but illegal in Oregon, that lets employers count employee tips toward the minimum wage obligation. In states that allow it, employers can pay tipped workers a lower base wage if tips bring their earnings up to minimum wage. Oregon prohibits this entirely.

Minimum wage: The lowest hourly rate an employer may legally pay a covered employee under state or federal law. When state and federal minimums differ, the higher rate applies. Oregon’s minimum is always higher than the federal rate of $7.25.

Liquidated damages: A pre-set amount of money a court awards as a penalty when an employer violates wage law — typically equal to the unpaid wages themselves. Oregon workers who win wage claims may recover both their unpaid wages and an equal amount in liquidated damages.

Statute of limitations: The legal deadline by which a claim must be filed. Miss it and you permanently lose the right to pursue that claim in court.

Tip pool: A workplace arrangement where tipped employees combine some or all of their tips into a shared fund that is then divided among a group. Oregon law permits tip pools but prohibits managers, supervisors, and owners from receiving any share.

ORS (Oregon Revised Statutes): The official codified laws of the state of Oregon. Minimum wage rules for Oregon workers are found in ORS Chapter 653.

Conclusion

Oregon restaurant workers have real, enforceable protections — but only if you know what they are. Your employer must pay you the full minimum wage for your region on every hour you work. Your tips are yours. Management cannot take them. And if your employer is paying you less than the law requires, Oregon law gives you tools to get that money back.

If you believe your employer is violating Oregon’s wage law — whether by paying below minimum wage, taking tips illegally, or misclassifying your role — do not wait. File a complaint with BOLI at complaints.boli.oregon.gov or consult an employment attorney. Most take wage cases with no upfront fee.

Visit AllAboutLawyer.com to learn more about your rights as a worker, understand what an unpaid wage claim looks like in practice, and find guidance on when a wage violation becomes a case worth pursuing.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Oregon wage law is subject to annual updates. For advice regarding your specific situation, consult a licensed Oregon employment attorney.

Sources: Oregon Bureau of Labor and Industries (oregon.gov/boli); ORS § 653.025; ORS § 653.035(3); ORS § 652.150; U.S. Department of Labor, Fair Labor Standards Act. Last Updated: April 26, 2026