We know that as a small business owner in Oregon, you’re eager to stay on top of the recent minimum wage increases. To help you do just that, we’ve put together this quick guide with all the info you need to know in 2023
What is the new minimum wage in Oregon for 2023?
On July 1, 2022, Oregon’s minimum wage increased to $13. 50 for companies in the Standard area, $14. 75 in the Portland metro area, and $12. 50 for companies in the non-urban counties. The minimum wage in Oregon will increase again across all counties on July 1, 2023 [see table below]
Are there plans to change the minimum wage in Oregon?
Yes. Senate Bill 1532 calls for a series of annual minimum wage rate increases from July 1, 2016, through July 1, 2022. Beginning July 1, 2023, the Oregon minimum wage rate will be adjusted annually based on the Consumer Price Index
What’s happening beyond 2022?
DateStandard CountiesPortland MetroNon-Urban CountiesJuly 1, 2020$12. 00$13. 25$11. 50July 1, 2021$12. 75$14. 00$12. 00July 1, 2022$13. 50$14. 75$12. 50July 1, 2023Adjusted based on Consumer Price Index$1. 25 more than standard minimum wage$1 less than the standard minimum wage
How should small business owners prepare for Oregon minimum wage and paid leave increases?
Every business is different, so there isn’t one right way to prepare. Here are a few options you may want to consider
- Audit your expenses. Check your cash flow in detail and create a hiring plan that you can afford. In some cases, you may find that hiring temporary workers as needed is less expensive than taking on full-time regular staff
- Make sure you hire and keep the right employees. Replacing an employee costs a lot. You decrease the total cost associated with recruiting and training when you hire [and then retain] the right people. Look for candidates with good track records, who come recommended, and who fit in with the company culture. Once they’re onboarded, make sure you build a relationship and provide paths for growth; it makes it more likely that they will stay in their role
- Keep valuable employees. There is significant cost in replacing an employee. New hires are more likely to stay at your company if you build a relationship with them and provide paths for growth. Employee retention is key to growing your business and preparing for Oregon minimum wage increases
- Increase prices. This is a great way to increase cash flow. Customers are rarely happy with a price hike, but keep in mind that your competitors will be forced to do the same. Just make sure you keep track of trends, and don’t raise prices too high
- Update tech. Consider automating certain aspects of the work and find ways to reduce production costs. Once you’ve reviewed the payroll basics, consider switching to Square Payroll, which helps you with tax calculations, timecards, and pay, not only for hourly employees but also for salaried employees
As always, verify that your business has an EIN, is following the equal pay law, and that you’re allowing your employees to use their meals and breaks
To make sure your business is prepared and stays in compliance, we recommend that you discuss these upcoming changes to the Oregon minimum wage and paid family leave laws with your accountant and lawyer
Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7. 25 per hour
Alaska
Basic Minimum Rate [per hour]. $10. 85
Premium Pay After Designated Hours . Daily - 8, Weekly - 40
Under a voluntary flexible work hour plan approved by the Alaska Department of Labor, a 10 hour day, 40 hour workweek may be instituted with premium pay after 10 hours a day
The premium overtime pay requirement on either a daily or weekly basis is not applicable to employers of fewer than 4 employees
The minimum wage is adjusted annually based on a set formula
Arizona
Basic Minimum Rate [per hour]. $13. 85
Arkansas
Applicable to employers with 4 or more employees
Basic Minimum Rate [per hour]. $11. 00
Premium Pay After Designated Hours . Weekly - 40
California
Basic Minimum Rate [per hour]. $15. 50
Any work in excess of eight hours in one workday, in excess of 40 hours in one workweek, or in the first eight hours worked on the seventh day of work in any one workweek shall be at the rate of one and one-half times the regular rate of pay. Any work in excess of 12 hours in one day or in excess of eight hours on any seventh day of a workweek shall be paid no less than twice the regular rate of pay. California Labor Code section 510. Exceptions apply to an employee working pursuant to an alternative workweek adopted pursuant to applicable Labor Code sections and for time spent commuting. [See Labor Code section 510 for exceptions]
The minimum wage will be adjusted annually based upon a set formula
Premium Pay After Designated Hours . Daily - 8 Over 12 [double time], Weekly - 40; on 7th day. First 8 hours [time and half] Over 8 hours on 7th day [double time]
Colorado
Basic Minimum Rate [per hour]. $13. 65
Premium Pay After Designated Hours . Daily - 12, Weekly - 40
Minimum wage rate and overtime provisions applicable to retail and service, commercial support service, food and beverage, and health and medical industries
Connecticut
Basic Minimum Rate [per hour]. $15. 00
Premium Pay After Designated Hours . Weekly - 40
In restaurants and hotel restaurants, for the 7th consecutive day of work, premium pay is required at time and one half the minimum rate
The Connecticut minimum wage was increased to $15. 00 per hour on June 1, 2023
The Connecticut minimum wage rate automatically increases to 0. 5 percent above the rate set in the Fair Labor Standards Act if the federal minimum wage rate equals or becomes higher than the State minimum
Delaware
Basic Minimum Rate [per hour]. $11. 75
The State adopts the federal minimum wage rate by reference if the federal rate is greater than the State rate
Florida
Basic Minimum Rate [per hour]. $12. 00
The minimum wage is adjusted annually based on a set formula. The Florida minimum wage is scheduled to increase by $1. 00 every September 30th until reaching $15. 00 on September 30, 2026
Georgia
Applicable to employers of 6 or more employees
Basic Minimum Rate [per hour]. $5. 15
The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act when the federal rate is greater than the State rate
Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7. 25 per hour
Hawaii
Basic Minimum Rate [per hour]. $12. 00
Premium Pay After Designated Hours . Weekly - 40
An employee earning a guaranteed monthly compensation of $2,000 or more is exempt from the State minimum wage and overtime law
Domestic service workers are subject to Hawaii's minimum wage and overtime requirements. Act 248, Regular Session 2013
The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act unless the State wage rate is higher than the federal rate
Idaho
Basic Minimum Rate [per hour]. $7. 25
Illinois
Applicable to employers of 4 or more employees, excluding family members
Basic Minimum Rate [per hour]. $13. 00
Premium Pay After Designated Hours . Weekly - 40
Indiana
Applicable to employers of 2 or more employees
Basic Minimum Rate [per hour]. $7. 25
Premium Pay After Designated Hours . Weekly - 40
Iowa
Basic Minimum Rate [per hour]. $7. 25
The Iowa minimum wage equals the federal minimum wage rate if it is set below the federal rate
Kansas
Basic Minimum Rate [per hour]. $7. 25
The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act
Kentucky
Basic Minimum Rate [per hour]. $7. 25
Premium Pay After Designated Hours . Weekly - 40, 7th day
The 7th day overtime law, which is separate from the minimum wage law, requires employers who permit covered employees to work seven days in any one workweek to pay the employee at a rate of time and one-half for hours worked on the seventh day when employees work all seven days of the workweek. The 7th day overtime law does not apply when the employee is not permitted to work over 40 hours total in the workweek
The state adopts the federal minimum wage rate by reference if the federal rate is greater than the State rate
Compensating time in lieu of overtime is allowed upon written request by an employee of any county, charter county, consolidated local government, or urban-county government, including an employee of a county-elected official
Louisiana
No state minimum wage law
Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7. 25 per hour
Maine
Basic Minimum Rate [per hour]. $13. 80
Premium Pay After Designated Hours . Weekly - 40
If the highest federal minimum wage is increased in excess of the State minimum wage in effect, then the State minimum wage will increase to the same amount, effective on the same date as the increase in the federal minimum wage
The minimum wage is adjusted annually based on a set formula
Maryland
Applicable to employers with 15 or more employees
Basic Minimum Rate [per hour]. $13. 25
Applicable to employers with fewer than 15 employees
Basic Minimum Rate [per hour]. $12. 80
Premium Pay After Designated Hours . Weekly - 40
Effective January 1, 2024, the state minimum wage rate will increase to $15. 00 for all employers, regardless of size
Employees under 18 years may be paid 85% of the minimum hourly wage rate
Massachusetts
Basic Minimum Rate [per hour]. $15. 00
Premium Pay After Designated Hours . Weekly - 40
In no case shall the Massachusetts minimum wage rate be less than $0. 50 higher than the effective federal minimum rate
Michigan
Applicable to employers of 2 or more employees
Basic Minimum Rate [per hour]. $10. 10
Premium Pay After Designated Hours . Weekly - 40
The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act unless the State wage rate is higher than the federal rate
From 2019 through 2030, the minimum wage will increase annually on a set schedule, provided the unemployment rate in the preceding year does not exceed 8. 5%
Employees 16-17 years of age may be paid 85% of the minimum hourly wage rate
Minnesota
Large employer [enterprise with annual revenues of $500,000 or more]
Basic Minimum Rate [per hour]. $10. 59
Premium Pay After Designated Hours . Weekly - 48
Small employer [enterprise with annual revenues of less than $500,000]
Basic Minimum Rate [per hour]. $8. 63
Premium Pay After Designated Hours . Weekly - 48
The minimum wage is adjusted annually based on a set formula
Employees under 18 years may be paid $8. 63 per hour
Missouri
Basic Minimum Rate [per hour]. $12. 00
Premium Pay After Designated Hours . Weekly - 40
In addition to the exemption for federally covered employment, the law exempts, among others, employees of a retail or service business with gross annual sales or business done of less than $500,000
Premium pay required after 52 hours in seasonal amusement or recreation businesses
The minimum wage is adjusted annually based on a set formula
Mississippi
No state minimum wage law
Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7. 25 per hour
Montana
Businesses with gross annual sales of more than $110,000
Basic Minimum Rate [per hour]. $9. 95
Premium Pay After Designated Hours . Weekly - 40
Businesses not covered by the Fair Labor Standards Act with gross annual sales of $110,000 or less
Basic Minimum Rate [per hour]. $4. 00
Premium Pay After Designated Hours . Weekly - 40
A business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4. 00 per hour. However, if an individual employee is producing or moving goods between states or otherwise covered by the federal Fair Labor Standards Act, that employee must be paid the greater of either the federal minimum wage or Montana's minimum wage
The minimum wage is adjusted annually based on a set formula
North Carolina
Basic Minimum Rate [per hour]. $7. 25
Premium Pay After Designated Hours . Weekly - 40
Premium pay is required after 45 hours a week in seasonal amusements or recreational establishments
North Dakota
Basic Minimum Rate [per hour]. $7. 25
Premium Pay After Designated Hours . Weekly - 40
Nebraska
Applicable to employers of 4 or more employees
Basic Minimum Rate [per hour]. $10. 50
New Hampshire
Basic Minimum Rate [per hour]. $7. 25
Premium Pay After Designated Hours . Weekly - 40
The New Hampshire minimum wage equals the federal minimum wage when set below the federal rate
New Jersey
Basic Minimum Rate [per hour]. $14. 13
Premium Pay After Designated Hours . Weekly - 40
The minimum wage is adjusted annually based on a set formula
There is a minimum wage of $12. 93 per hour for seasonal and small employers who employ fewer than 6 people
New Mexico
Basic Minimum Rate [per hour]. $12. 00
Premium Pay After Designated Hours . Weekly - 40
Nevada
If qualifying health insurance is NOT offered by the employer
Basic Minimum Rate [per hour]. $11. 25
If qualifying health insurance is offered by the employer
Basic Minimum Rate [per hour]. $10. 25
The Nevada minimum wage is adjusted annually based on a set formula. On July 1, 2023, the minimum wage increased to $11. 25 for employees not offered qualifying health insurance and to $10. 25 per hour for employees offered qualifying health insurance. Effective July 1, 2024, there will be a uniform minimum wage of $12. 00 per hour for all employees
New York
Basic Minimum Rate [per hour]. $14. 20; $15. 00 [Long Island, Westchester, & NYC]
Premium Pay After Designated Hours . Weekly - 40
View minimum wage rates through 2023
The New York minimum wage equals the federal minimum wage when set below the federal rate
Under the new hospitality regulations, residential workers ["live-in workers"] are now entitled to overtime for hours worked over 40 in a payroll week, instead of the prior 44 hour requirement. Therefore, overtime hours for all non-exempt workers are now any hours worked over 40 in a payroll week
Employers operating a factory, mercantile establishment, hotel, restaurant, freight/passenger elevator, or theater; or a building employing security guards, janitors, superintendents, managers, engineers, or firemen must provide 24 hours of consecutive rest each week. Domestic workers are entitled to 24 hours of consecutive rest each week, and receive premium pay if they work during such period
Employees receive 1 hour of pay at minimum wage rate in addition to owed wages when spread of hours exceeds 10 hours, there is a split shift, or both
Ohio
Employers with annual gross receipts of $372,000 or more
Basic Minimum Rate [per hour]. $10. 10
Premium Pay After Designated Hours . Weekly - 40
Employers with annual gross receipts under $372,000
Basic Minimum Rate [per hour]. $7. 25
Premium Pay After Designated Hours . Weekly - 40
The minimum wage is adjusted annually based on a set formula
Oklahoma
Employers with ten or more full time employees at any one location or employers with annual gross sales over $100,000 irrespective of number of full time employees
Basic Minimum Rate [per hour]. $7. 25
All other employers
Basic Minimum Rate [per hour]. $2. 00
The Oklahoma state minimum wage law does not contain current dollar minimums. Instead the state adopts the federal minimum wage rate by reference
The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act
Oregon
Basic Minimum Rate [per hour]. $14. 20 [standard state rate]; $15. 45 [Portland Metro Area]; $13. 20 [Non-Urban counties]
Premium Pay After Designated Hours . Weekly - 40
Premium pay required after 10 hours a day in nonfarm canneries, driers, or packing plants and in mills, factories or manufacturing establishments [excluding sawmills, planning mills, shingle mills, and logging camps]
The Oregon minimum wage is adjusted annually on July 1 based on a set formula. There is a higher minimum wage in the Portland metro area and a lower minimum wage in non-urban counties. See Minimum wage increase schedule
Pennsylvania
Basic Minimum Rate [per hour]. $7. 25
Premium Pay After Designated Hours . Weekly - 40
Rhode Island
Basic Minimum Rate [per hour]. $13. 00
Premium Pay After Designated Hours . Weekly - 40
Time and one-half premium pay for work on Sundays and holidays in retail and certain other businesses is required under two laws that are separate from the minimum wage law
South Carolina
No state minimum wage law
Employers subject to the Fair Labor Standards Act must pay the current federal minimum wage of $7. 25 per hour
South Dakota
Basic Minimum Rate [per hour]. $10. 80
The minimum wage is adjusted annually based on a set formula
Tennessee
No state minimum wage law
Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7. 25 per hour
Texas
Basic Minimum Rate [per hour]. $7. 25
The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act
The Texas State minimum wage law does not contain current dollar minimums. Instead the State adopts the federal minimum wage rate by reference
Utah
Basic Minimum Rate [per hour]. $7. 25
The Utah state minimum wage law does not contain current dollar minimums. Instead the state law authorizes the adoption of the federal minimum wage rate via administrative action
The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act
Virginia
Basic Minimum Rate [per hour]. $12. 00
Vermont
Applicable to employers of two or more employees
Basic Minimum Rate [per hour]. $13. 18
Premium Pay After Designated Hours . Weekly - 40
The Vermont minimum wage is automatically replaced with the federal minimum wage rate if it is higher than the State minimum
Washington
Basic Minimum Rate [per hour]. $15. 74
Premium Pay After Designated Hours . Weekly - 40
Premium pay not applicable to employees who request compensating time off in lieu of premium pay
The minimum wage is adjusted annually based on a set formula
Wisconsin
Basic Minimum Rate [per hour]. $7. 25
Premium Pay After Designated Hours . Weekly - 40
West Virginia
Applicable to employers of 6 or more employees at one location
Basic Minimum Rate [per hour]. $8. 75
Premium Pay After Designated Hours . Weekly - 40
Wyoming
Basic Minimum Rate [per hour]. $5. 15
Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7. 25 per hour
District of Columbia
Basic Minimum Rate [per hour]. $17. 00
Premium Pay After Designated Hours . Weekly - 40
The minimum wage is adjusted annually on July 1 based on a set formula
Northern Mariana Islands
Basic Minimum Rate [per hour]. $7. 25
Puerto Rico
Applicable to all employees covered by the federal Fair Labor Standards Act [FLSA] except for agricultural employees and employees of municipalities and the Commonwealth of Puerto Rico
Basic Minimum Rate [per hour]. $9. 50
The minimum wage increased to $9. 50 per hour on July 1, 2023
Premium Pay After Designated Hours. Daily - 8, Weekly – 40, and on statutory rest day [time-and-a-half]. Employees entitled to greater rights or benefits who were hired prior to January 26, 2017 shall maintain said rights or benefits.
Employers covered by the FLSA but who are not subject to the Puerto Rico Minimum Wage Act must pay at least the federal minimum wage of $7. 25 per hour
American Samoa
American Samoa has special minimum wage rates
Virgin Islands
Basic Minimum Rate [per hour]. $10. 50
Guam
Basic Minimum Rate [per hour]. $9. 25
Premium Pay After Designated Hours . Weekly - 40
Footnote
1 The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified