Oregon’s Minimum Wage Increases on July 1, 2018

by Nick Beleiciks and Felicia Bechtoldt

June 28, 2018

Oregon’s minimum wage increases on July 1, 2018, but the raises won’t be the same across the state. Minimum wage increases to $12.00 per hour inside the Portland urban growth boundary, $10.50 per hour in nonurban counties, and $10.75 in other areas of the state.
Oregon’s three minimum wages will be in the top six state-level minimum wages in the nation (including the District of Columbia). The highest minimum wage will be in the District of Columbia ($13.25), followed by Washington ($11.50), Massachusetts ($11.00), and California ($11.00). The federal minimum wage will remain at $7.25 per hour.

Oregon’s minimum wage levels were set by Senate Bill 1532 in 2016. The minimum wage increases on July 1 each year through 2022. There are three tiers of step increases based on geography.
Beginning in 2023, minimum wage in all tiers will be adjusted for inflation. This means the minimum wage will maintain purchasing power after the last step increase in 2022.

A Look Back at Minimum Wage Jobs in 2017

Between July 1, 2017 and July 1, 2018, Oregon’s minimum wages were $11.25 per hour within the Portland urban growth boundary, $10.25 standard, and $10.00 in nonurban counties. Roughly 7.4 percent of all jobs (160,274 jobs) paid minimum wage or less in Oregon in the third quarter of 2017.

The share of jobs paying minimum wage ranged from a low of 4.0 percent in Morrow County (295 jobs) to a high of 13.3 percent in Malheur County (2,050 jobs). Multnomah County had 39,561 minimum wage jobs, which made up 7.1 percent of total jobs in the county.

With a larger concentration of jobs in metro areas, metros also have more minimum wage jobs. Deschutes County had the lowest percentage of jobs (5.7%) paying minimum wage among metro counties, followed by Marion County (6.2%) and Benton County (6.2%). Clackamas had the highest share of jobs paying minimum wage among metro counties at 9.5 percent.
There were fourteen counties that had a share of minimum wage jobs at or below the statewide share of 7.4 percent. These included Morrow (4.0%), Hood River (4.5%), Deschutes (5.7%), Marion (5.9%), and Umatilla (6.2%). Counties with a higher share of minimum wage jobs tended to be in rural areas. Eastern Oregon had a greater share of minimum wage jobs than other areas of the state. The highest shares of minimum wage jobs were found in Malheur (13.3%), Harney (13.1%), Wheeler (12.8%), Baker (11.6%), Sherman (11.0%), and Lake (10.9%).

See our report Oregon’s Minimum Wage Jobs: Facts, Figures, and Context for historical information about Oregon’s minimum wage jobs.

 


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