Part of Ferry's 51-state tip laws guide

Oregon tip laws (2026)

Oregon has no tip credit. Every worker gets the full regional minimum before tips: $15.55 standard, $16.80 in the Portland metro and $14.55 in nonurban counties since July 1, 2026. Employers can require tip pools, but managers and the house can't take a share.

Rates as of Last reviewed

Oregon at a glance

No tip credit

Oregon: $15.55 an hour minimum wage and no tip credit, so tipped staff get the full $15.55 before tips.

Oregon tip and wage rates at a glance, as of Nov 3, 2026
State minimum wage$15.55/hrStatewide from .[1]
Tipped cash wage$15.55Full minimum wage. Tips go on top.[1]
Max tip creditNoneTips can't count toward wages.[1]
Tip poolingAllowedMandatory pools allowed.[1]
Card-fee deductionPro rata onlyOnly the tip's share of the fee, under federal rules.[2]
Card tip payoutFederally covered employers pay out pooled tips by the regular payday, or as soon as practical if the amount isn't known yet.[2]
Regional minimum wages3 placesSet by state law. See all[3]

Rates verified against the Oregon Bureau of Labor and Industries on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)

02The yes/no sheet

Can you do this in Oregon?

In Oregon you can't take a tip credit, can require staff to join a tip pool and can take out only the tip's share of a card fee. Each answer below carries its condition and an official source.

Yes state law allows itNo state law says noDepends read the conditionFederal rule no state rule, federal applies
What restaurant operators can and can't do with tips in Oregon
NumberCan you…AnswerThe condition
01Take a tip credit against minimum wage?NoPay the full $15.55 an hour before tips.[1]
02Make staff join a tip pool?YesAllowed, as long as only eligible staff share.[1]
03Include bartenders, bussers, runners and hosts?YesAll four can share.[1]
04Include cooks and dishwashers?YesOregon requires full regional wages. The federal nontraditional-pool rule permits cooks and dishwashers when the employer takes no tip credit; managers and supervisors remain excluded.[2]
05Give managers or supervisors a share?NoBOLI identifies the federal prohibition on management/house pool shares. Under the FLSA executive duties test, managers/supervisors cannot receive employee tips; directly and solely earned personal tips may be retained.[1][2]
06Let an owner keep any of the tips?NoEmployers cannot retain employee tips or pool shares under the FLSA. An actively managing owner with at least 20% equity also meets the federal manager restriction; BOLI expressly excludes the house.[1][2]
07Pick your own split (hours, points or percentages)?DependsEmployers may establish a mandatory pool; management and the house cannot receive employee tip shares.[1]
08Take card processing fees out of tips?Pro rata (federal)Federal rule: only the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[2]
09Hold card tips until payday?DeadlineFederally covered employers pay out pooled tips by the regular payday, or as soon as practical if the amount isn't known yet.[2]
10Cover walkouts, breakage or register shortages from tips?NoNot from tips.[1][2][3]
11Keep a mandatory service charge for the house?Federal ruleA mandatory service charge isn't a tip under federal law. Agreements and other law decide who gets it; amounts paid to staff count toward overtime.[2]
12Pay tips on a payroll card?DependsVoluntary agreement and a free full withdrawal or another no-cost payment option are required. Offer another way to get paid too.[4]

03State vs federal

Oregon vs federal law

Oregon sets a stricter rule than federal law on 3 of the 10 rules below, starting with a $15.55 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.

Oregon tip rules compared with federal rules (FLSA)
RuleFederal (FLSA)OregonComparison
Minimum wageStricterFederal$7.25[2]Oregon$15.55[1]Stricter
Tipped cash wageStricterFederal$2.13[2]Oregon$15.55 (full minimum wage)[1]Stricter
Max tip creditStricterFederal$5.12[2]OregonNoneStricter
Who counts as tippedNot applicableFederalMore than $30 a month in tips, customarily and regularly received in the occupation.[2]OregonNot applicable: Oregon has no tip credit.Not applicable
Managers in the poolState ruleFederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[2]OregonBOLI identifies the federal prohibition on management/house pool shares. Under the FLSA executive duties test, managers/supervisors cannot receive employee tips; directly and solely earned personal tips may be retained.[1][2]State rule
Kitchen in the poolState ruleFederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[2]OregonOregon requires full regional wages. The federal nontraditional-pool rule permits cooks and dishwashers when the employer takes no tip credit; managers and supervisors remain excluded.[2]State rule
Card fees from tipsFederal appliesFederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[2]OregonFederal rule applies.[3]Federal applies
Card tip payoutFederal appliesFederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[2]OregonFederally covered employers pay out pooled tips by the regular payday, or as soon as practical if the amount isn't known yet.[2]Federal applies
Mandatory service chargesState ruleFederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[2]OregonA mandatory service charge isn't a tip under federal law. Agreements and other law decide who gets it; amounts paid to staff count toward overtime.[2]State rule
Overtime for tipped staffState ruleFederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[2]Oregon1.5 times the regular rate after 40 hours a week. Tips don't reduce the hourly wage or count in Oregon's regular-rate math.[5][6]State rule

04Wages

Minimum wage and the tip credit in Oregon

Oregon doesn't allow a tip credit. Tipped staff earn the full $15.55 an hour from the employer, and every tip lands on top.[1]

Worked example

One server, one 30-hour week in Oregon

Wage: 30 hours × $15.55$466.50
Tips for the week+ $600.00
Their week$1,066.50
Wage you payTips, all theirs

No tip credit means tips never reduce what you pay. A slow night doesn't change the wage line. Fictional worker and tips.

Tip credit conditions
Not applicable: Oregon has no tip credit.
Who counts as tipped
Not applicable: Oregon has no tip credit.
Overtime
1.5 times the regular rate after 40 hours a week. Tips don't reduce the hourly wage or count in Oregon's regular-rate math.[5][6]
Side work and dual jobs
Not applicable: Oregon has no tip credit.

Other rates

Other minimum wage rates in Oregon
RateHourly
Tier Standard regionRestaurants outside Portland metro and the listed nonurban counties. Since .[1]$15.55
Youth or training No lower general youth or training rateStandard region shown; ordinary minors and on-the-job trainees receive regional minimum. Individually authorized student-learners are a separate narrow exception.[1]$15.55
Youth or training Individually authorized student-learnersAccredited-school bona fide professional training, individual BOLI application/approval and statutory hours/anti-displacement conditions. Not an automatic restaurant training discount. Rate set by formula: at least 75% of applicable ORS 653.025 regional minimum.[3][7]$11.66*

* Worked out by Ferry from the formula, using the $15.55 state minimum wage. Not an official figure.

Scheduled increases

No statewide increase with a published amount is on file as of .

05Local rates

Regional minimum wages in Oregon

Oregon sets 3 regional minimum wages by state law, from $14.55 in Nonurban counties to $16.80 in Portland metro. Cities and counties can't set their own.[3]

Local rates preemptedSorted highest first. Bars start near the state rate, marked with a line.
Local minimum wages in Oregon, 3 rows, sorted highest first
RegionRatevs state $15.55Tipped cash wageEffective
Portland metroWork within the metropolitan urban growth boundary.CPI adjustment, amount not yet published.[1]$16.80+$1.25 over state$16.80Next change
Standard regionStandard counties and covered areas outside the urban growth boundary.CPI adjustment, amount not yet published.[1]$15.55Same as state$15.55Next change
Nonurban countiesThe 18 counties listed in ORS 653.026.CPI adjustment, amount not yet published.[1]$14.55$1.00 below state$14.55Next change

How it works

Oregon sets wages by region, not by city

The state draws three wage regions. Cities and counties can't set their own minimum wage.[1][3][8]

Oregon minimum wage regions from July 1, 2026[1][3]
RegionWhere it appliesHourly minimum
Portland metroWork inside the metro urban growth boundary$16.80
StandardStandard counties and covered areas outside the urban growth boundary$15.55
NonurbanThe 18 counties listed in ORS 653.026$14.55

06Tip pool

Who can be in the tip pool in Oregon

Oregon allows tip pools, and employers can make them mandatory. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.

Who can share in a tip pool in Oregon, by role
RoleCan share?Condition
Front of house
ServerAllowedEligible only without actual manager or supervisor duties; Oregon regional minimum wage still applies.[1]
BartenderAllowedEligible only without actual manager or supervisor duties; Oregon regional minimum wage still applies.[1]
BusserAllowedEligible only without actual manager or supervisor duties; Oregon regional minimum wage still applies.[1]
Food runnerAllowedEligible only without actual manager or supervisor duties; Oregon regional minimum wage still applies.[1]
HostAllowedEligible only without actual manager or supervisor duties; Oregon regional minimum wage still applies.[1]
BarbackAllowedEligible only without actual manager or supervisor duties; Oregon regional minimum wage still applies.[1]
ExpoAllowedEligible only without actual manager or supervisor duties; Oregon regional minimum wage still applies.[1]
Back of house
CookAllowedEligible only without actual manager or supervisor duties; Oregon regional minimum wage still applies.[1]
DishwasherAllowedEligible only without actual manager or supervisor duties; Oregon regional minimum wage still applies.[1]
Leadership
Shift leadDependsEligible only without actual manager or supervisor duties; Oregon regional minimum wage still applies.[1]
Manager or supervisorNot allowedManagement and the house cannot share employee pools.[1]
OwnerNot allowedManagement and the house cannot share employee pools.[1]
Managers and supervisors
BOLI identifies the federal prohibition on management/house pool shares. Under the FLSA executive duties test, managers/supervisors cannot receive employee tips; directly and solely earned personal tips may be retained.[1][2]
Owners
Employers cannot retain employee tips or pool shares under the FLSA. An actively managing owner with at least 20% equity also meets the federal manager restriction; BOLI expressly excludes the house.[1][2]
Back of house
Oregon requires full regional wages. The federal nontraditional-pool rule permits cooks and dishwashers when the employer takes no tip credit; managers and supervisors remain excluded.[2]
Who sets the percentages
Employers may establish a mandatory pool; management and the house cannot receive employee tip shares.[1]
Cap on what a pool can take
No state rule. Federal rule applies: no federal percentage or amount cap for a valid mandatory pool; eligibility, notice and minimum wage rules still apply.[2][1]
Pooling allowed
Yes.[1]

07Put it to work

Setting up a tip pool in Oregon

Under Oregon rules, 9 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.

The law decides who's in. You still have to run the split every shift and pay it out. That part is a math and payout job, and it's the same job whether you have one location or forty.
Saturday dinner pool$1,200.00
9 of 10 staff can share in Oregon
By %
By points
By hours
Servers 55%Bar 12%Support 15%Kitchen 18%
The same $1,200.00 pool split three ways, using roles that can share in Oregon
WhoBy %By pointsBy hours
MayaServer, 6 h, 10 pts$220.00$203.39$133.34
JordanServer, 6 h, 10 pts$220.00$203.39$133.33
PriyaServer, 6 h, 10 pts$220.00$203.39$133.33
SamBartender, 6 h, 8 pts$144.00$162.71$133.33
LuisBusser, 5 h, 5 pts$90.00$101.69$111.11
AvaFood runner, 5 h, 5 pts$90.00$101.69$111.11
TheoCook, 7 h, 4 pts$72.00$81.36$155.56
KimCook, 7 h, 4 pts$72.00$81.36$155.56
RafaDishwasher, 6 h, 3 pts$72.00$61.02$133.33
DanaManager or supervisor, 2 h (ran food)Not in the pool. Management and the house cannot share employee pools.
Total$1,200.00$1,200.00$1,200.00

Fictional restaurant and staff. Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.

Support Pool contributors: Server $262.83 and Bartender $54.92, for a total of $317.75. Support Pool receivers, pooled by Day and distributed by Hours Worked: Jonah Kim, Busser, 6.50 hours, +$179.56. Sofia Nunez, Food Runner, 5.00 hours, +$138.19. Total 11.50 hours and $317.75.

Support pool split. Servers and bartenders pay into the support pool, split by hours worked.
Ferry Tip Manager

Ferry Tip Manager: support pool split by hours

Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.

Who it's for Full-service restaurants that tip out bussers, runners and bar backs

Run your own numbersPlug your staff and tips into the tip pooling calculator

08Service charges

Service charges vs tips in Oregon

Oregon law doesn't say who a mandatory service charge belongs to, but it does set rules for how the charge is shown to guests. Under federal law a mandatory service charge is not a tip, and any part paid to staff counts as wages.

Tips compared with service charges in Oregon
QuestionOptionalTipMandatoryService charge
Who sets the amountThe guestThe business
Who it belongs toThe worker it was left for, or the poolA mandatory service charge isn't a tip under federal law. Agreements and other law decide who gets it; amounts paid to staff count toward overtime.[2]
Can it go to staff?Yes, through the poolYes. Amounts paid to staff are wages, not tips.[2]
How it's taxed (federal)Tip income the worker reportsRegular wages, with payroll taxes[11][12]
Guest noticeNone neededOnline offers must include mandatory fees in the advertised price under ORS 646A.087, except listed taxes, reasonable fulfillment charges and distance/selection-based fees; the latter require prominent disclosure before purchase. General false-price prohibitions also apply. No prescribed statewide restaurant menu wording identified.[9][10]
  1. Step 1Did the guest choose whether to pay it, and how much?
    YesIt's a tip. It belongs to staff.
    NoIt's a mandatory charge. Go to step 2.
  2. Step 2What does Oregon say?Federal ruleA mandatory service charge isn't a tip under federal law. Agreements and other law decide who gets it; amounts paid to staff count toward overtime.[2]
  3. Step 3Check the cityNo city service charge rules on file for Oregon.
Menu and receipt notice
Online offers must include mandatory fees in the advertised price under ORS 646A.087, except listed taxes, reasonable fulfillment charges and distance/selection-based fees; the latter require prominent disclosure before purchase. General false-price prohibitions also apply. No prescribed statewide restaurant menu wording identified.[9][10]
Large-party auto gratuities
A mandatory automatic charge is a service charge under federal wage and tax rules, regardless of its label; voluntary customer tips are different.[11][12]

Local service charge rules

No local service charge rules on file for Oregon.

More on the difference: service charge vs tip.

09Card tips

Card tips in Oregon: fees and payout timing

In Oregon only the tip's share of the card processing fee can come out of a card tip, under federal rules. Payout deadline: federally covered employers pay out pooled tips by the regular payday, or as soon as practical if the amount isn't known yet.

Card processing fees
Pro rata (federal)Only the tip's share.

Federal law allows only the actual proportional card fee on a card tip. That doesn't permit other employer costs or barred Oregon wage deductions.[2]

When card tips have to land

  1. TonightGuest adds a tip On the card, at the table.
  2. CloseShift is tallied The pool is split by your rules.
  3. DeadlineOregon rule Federally covered employers pay out pooled tips by the regular payday, or as soon as practical if the amount isn't known yet.[2]
  4. Last dayFinal pay Fired or mutual agreement: next business day. Quit with 48 hours' notice: last day. Otherwise: 5 business days or next payday, whichever is sooner.[4]

Paydays: Establish a regular payday no more than 35 days after work begins or the previous payday, subject to the statute’s written-agreement provision.[13]

Paying tips on a payroll card

  • Allowed?DependsVoluntary agreement and a free full withdrawal or another no-cost payment option are required.[4]
  • Worker consent needed?YesVoluntary agreement may be oral; use the language ordinarily used with the worker.[4]
  • Free way to get the money?State ruleWorkers must be able to withdraw their full net pay initially without cost, or choose another no-cost wage payment method.[13]
  • Must you offer another option?Yes
  • Holding cash tipsFederal ruleNo state rule. Federal rule applies: employer may collect to administer a valid pool, then distribute under the regular-payday rule. No broader authorization to retain cash tips is established.[2][1]
  • Tips shown on the pay stubNo (federal)No state rule. Federal rule applies: no. FLSA does not require pay stubs; state laws and employer records are separate.[14][15]

Alice Anderson, Server, Downtown. Direct tips +$980.25, indirect tips +$0.00, tip outs -$147.07, tips payable $833.18. Tip Payment history, all Automatic with status Success: 2026-10-29 $833.18, 2026-10-28 $783.19, 2026-10-27 $733.20.

Employee tip payout. Each person's direct tips, tip outs, and payable amount, then paid automatically.
Ferry Pay and Pay Card

Ferry Pay: each tip share, paid out digitally

Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.

Who it's for Operators who want to stop the nightly cash run

Customer story: BJ's Restaurants
200+locations across 30 states run Tip Manager and Ferry Pay
66%+reduction in cash-carrying costs
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
Jake Guild, Senior Vice President & Chief Accounting Officer, BJ's Restaurants
Read the BJ's case study

10Records

Records and notices in Oregon

Keep each tipped worker's tips and hours on record, shift by shift. Oregon: time records: two years.

Oregon State

  • Tip records Keep employee identity, occupation and actual weekly/pay-period hours; provide required itemized wage statements and preserve payroll records. OAR 839-020-0080(6) additionally requires notation identifying each tipped employee.[3][16]
  • How long to keep them Time records: two years. Payroll records: three years. Other specific obligations may require longer retention.[17]
  • Tip credit notice Not applicable: Oregon has no tip credit.
  • Posters and forms Oregon minimum-wage workplace poster; Earnings and deduction explanation for new hires, reviewed annually.[1][15]

Everywhere Federal

  • Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[2]
  • How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[18]
  • Tip credit notice Not needed in Oregon: there's no tip credit.
  • A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
For workers

Think your tips were handled wrong in Oregon?

Workers in Oregon can file a tip or wage claim with the Oregon Bureau of Labor and Industries (971-245-3844). Filing is free, and this page can't settle a dispute; the state can.[3]

Oregon Bureau of Labor and Industries
Phone
971-245-3844[19]
Website
oregon.gov/boli

Retaliation: Employers cannot retaliate against workers for wage-law inquiries, reports, complaints, proceedings or testimony.[3]

Penalties: Unpaid minimum wage or overtime can mean back pay plus penalty wages. Willfully late final pay can cost up to 30 days of penalty wages.[13][3]

Can they take this out of my tips?

  • Walkouts and dine-and-dashNot allowedEmployers cannot keep employee tips for business expenses; Oregon separately limits deductions from wages.[1][2]
  • BreakageNot allowedEmployers cannot keep employee tips for business expenses; Oregon separately limits deductions from wages.[1][2]
  • Register shortagesNot allowedEmployers cannot keep employee tips for business expenses; Oregon separately limits deductions from wages.[1][2]
  • UniformsNot allowedEmployers cannot keep employee tips for business expenses; Oregon separately limits deductions from wages.[1][2]
  • Card processing feesAllowedFederal actual proportional processor fee only; no required-wage shortfall. No Oregon fee-specific rule identified; prohibited paycheck deductions remain barred.[3]
  • A manager's shareNot allowedManagement cannot share employee tip pools.[1]

11Law changes

What changed in Oregon tip law, and what's coming

No statewide increase with a published amount is on file for Oregon as of . Most recent change: Standard $15.55, Portland metro $16.80 and nonurban $14.55 rates took effect; tips remain additional to wages ().

  1. ChangedStandard $15.55, Portland metro $16.80 and nonurban $14.55 rates took effect; tips remain additional to wages.[1]
  2. ChangedSB 906 requires new-hire earnings and deduction explanations, reviewed and updated annually.[15]
  3. ChangedORS 646A.087 requires online advertised prices to include mandatory charges, subject to specified exceptions and distance/selection-fee disclosure.[20]

Bills and ballot measures

Nothing pending as of .

Key statutes

  • ORS 653.017 and 653.025-.026
  • ORS 653.035, 653.045, 653.055-.060
  • ORS 652.110-.150 and 652.610

12FAQ

Oregon tip law questions

Plain answers to the 8 questions restaurant owners and staff ask most about Oregon tip law, each linked to its source.

Can Oregon restaurants take a tip credit?

No. Workers get the full Oregon minimum wage before tips. Tips can't replace any part of that hourly wage.[1][3]

What is Oregon's minimum wage for restaurant workers?

Since July 1, 2026: $15.55 standard, $16.80 in the Portland metro and $14.55 in nonurban counties. The region depends on where the work happens.[1]

When does Oregon's minimum wage change next?

July 1, 2027, with an inflation (CPI) adjustment. The amount was not yet published as of November 3, 2026.[1][8]

Can a restaurant require tip pooling?

Yes. Oregon's labor bureau says employers may require pools, but management and the house can't share in them.[1]

Can cooks and dishwashers join a tip pool?

Yes, when the employer pays the full minimum wage and takes no tip credit, which Oregon always requires. Managers and supervisors stay out.[2][1]

Can minors or trainees get a lower wage?

Generally no. Minors and on-the-job trainees earn the regional minimum. A narrow, individually approved student-learner program can pay at least 75%, but restaurants don't qualify automatically.[1][3][7]

Can an employer require a payroll card?

No. A payroll card needs the worker's voluntary agreement, and the worker can ask for a check. The card must allow a free full first withdrawal or offer another no-cost option.[13][4]

Where can a worker report unpaid wages?

Oregon's Bureau of Labor and Industries at 971-245-3844, or its online complaint portal.[19][4]

The law decides who's in. Ferry runs the split.

See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own Oregon setup.

14Sources

Sources for Oregon tip laws

Every figure on this page links to one of these 20 sources: 15 for Oregon and 5 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.

  1. 1Oregon Minimum WageOregon Bureau of Labor and Industries · Official source · Checked Pinpoint: For workers, opening explanation; Regional rate list, Standard; Opening regional rate effective periodwww.oregon.gov/boli/workers/pages/minimum-wage.aspx
    What the source says

    “Tip credits are illegal in Oregon.”

    “$15.55 per hour - Standard”

    “For July 1, 2026, through June 30, 2027, those rates are:”

  2. 2Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Tip Credit, paragraph 2; Other Tip Pooling, paragraph 1; Service Charges, paragraph 1www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
    What the source says

    “An employer must pay a tipped worker at least $2.13 per hour under the FLSA.”

    “the federal minimum wage, which is currently $7.25 per hour.”

    “The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).”

  3. 3Oregon Revised Statutes Chapter 653Oregon Legislative Counsel · Official source · Page updated 2025 · Checked Pinpoint: ORS 653.017(2); ORS 653.035(3); ORS 653.045(1)(b)www.oregonlegislature.gov/bills_laws/ors/ors653.html
    What the source says

    “the State of Oregon preempts all charter and statutory authority of local governments to set any minimum wage requirements.”

    “Employers, including employers regulated under the federal Fair Labor Standards Act, may not include any amount received by employees as tips in determining the amount of the minimum wage required to be paid by ORS 653.010 to 653.261.”

    “The actual hours worked each week and each pay period by each employee.”

  4. 4BOLI: Paychecks, For Workers, State of OregonOregon Bureau of Labor and Industries · Official source · Checked Pinpoint: Final paychecks, discharge paragraph; Final paychecks, first paragraph; Paychecks FAQ, payment by direct deposit or cardwww.oregon.gov/boli/workers/pages/paychecks.aspx
    What the source says

    “If you are let go or fired, your final paycheck is due by the end of the next business day.”

    “If you quit with less than 48 hours’ notice (not including weekends and holidays) your paycheck and any wages owed are due within five business days or on the next regular payday, whichever comes first.”

    “Employers are also able to pay employees by automated teller machine card, payroll card, or other means of electronic transfer as long as the employee voluntarily agrees.”

  5. 5BOLI: Overtime, For Employers, State of OregonOregon Bureau of Labor and Industries · Official source · Checked Pinpoint: Opening bullet 1www.oregon.gov/boli/employers/pages/overtime.aspx
    What the source says

    “Most employers must pay overtime at the rate of 1.5 times the worker’s regular pay rate for all hours worked over 40 in the workweek”

  6. 6OAR 839-020-0030, Payment of Overtime WagesOregon Secretary of State · Official source · Page updated · Checked secure.sos.state.or.us/oard/view.action?ruleNumber=839-020-0030
    What the source says

    “excluding commissions, spiffs, bonuses, tips or similar benefits”

  7. 7OAR 839-020-0015, Fixed Minimum Hourly Wage RatesOregon Secretary of State · Official source · Page updated · Checked Pinpoint: OAR 839-020-0015(2)(e)secure.sos.state.or.us/oard/view.action?ruleNumber=839-020-0015
    What the source says

    “The application must specifically identify each student learner for whom the employer seeks to establish the lower rate”

    “The commissioner will consider each application on an individual basis and will not grant blanket authorization in advance for a specific type or group of persons.”

  8. 8Minimum wage increase scheduleOregon Bureau of Labor and Industries · Official source · Checked www.oregon.gov/boli/workers/pages/minimum-wage-schedule.aspx
  9. 9ORS 646A.087, Online price disclosuresOregon Legislative Counsel · Official source · Page updated 2025 · Checked Pinpoint: restaurant online-offer scope; ORS 646A.087(1)(c), limited variable-fee exceptionwww.oregonlegislature.gov/bills_laws/ors/ors646a.html
    What the source says

    “A person that offers or sells goods or services online may not advertise, display or offer a price for the goods or services that does not include all fees or charges that a purchaser must pay to complete a transaction”

    “A service fee that is calculated according to distance or a purchaser’s selections, except that the person must disclose the service fee prominently before the purchaser agrees to pay for the goods or services.”

  10. 10ORS 646.608, Unlawful trade practicesOregon Legislative Counsel · Official source · Page updated 2025 · Checked Pinpoint: ORS 646.608(1)(s), general offering-price prohibitionwww.oregonlegislature.gov/bills_laws/ors/ors646.html
    What the source says

    “Makes false or misleading representations of fact concerning the offering price of, or the person’s cost for real estate, goods or services.”

  11. 11Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
    What the source says

    “Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”

    “For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”

    “These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”

  12. 12Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
    What the source says

    “compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”

    “Rev. Rul. 2012-18”

  13. 13Oregon Revised Statutes Chapter 652Oregon Legislative Counsel · Official source · Page updated 2025 · Checked Pinpoint: ORS 652.120(2); ORS 652.110(5)(a)-(b); ORS 652.110(4)www.oregonlegislature.gov/bills_laws/ors/ors652.html
    What the source says

    “Payday may not extend beyond a period of 35 days from the time that the employees entered upon their work, or from the date of the last regular payday.”

    “Make an initial withdrawal of the entire amount of net pay without cost to the employee; or (b) Choose to use another means of payment of wages that involves no cost to the employee.”

    “An employer shall pay wages due to an employee by check upon the written or oral request of the employee.”

  14. 14Questions and Answers About the FLSA, DOL WHDU.S. Department of Labor · Official source · Checked Pinpoint: Recordkeeping and Notices, Are pay stubs required?www.dol.gov/agencies/whd/flsa/faq
    What the source says

    “However, the FLSA does not require an employer to provide employees pay stubs.”

  15. 15Paycheck DeductionsOregon Bureau of Labor and Industries · Official source · Checked Pinpoint: Itemized Pay Statement Requirements, paragraph 3; Itemized Pay Statement Requirements, SB 906 paragraphwww.oregon.gov/boli/workers/pages/paycheck-deductions.aspx
    What the source says

    “The statement must also include the gross and net pay for the period, the amounts and purposes of any deductions, and any allowances claimed as part of the minimum wage”

    “Effective January 1, 2026, SB 906 (2025) requires that all employers notify all new hires of information about earnings and deductions to help them understand what is contained in the itemized statement.”

  16. 16OAR 839-020-0080, General Recordkeeping RequirementsOregon Secretary of State · Official source · Page updated · Checked secure.sos.state.or.us/oard/view.action?ruleNumber=839-020-0080
    What the source says

    “a symbol, letter or other notation placed on the pay records identifying each employee.”

  17. 17Access to Employee RecordsOregon Bureau of Labor and Industries · Official source · Checked Pinpoint: Retention FAQwww.oregon.gov/boli/workers/pages/access-to-employee-records.aspx
    What the source says

    “Time records must be retained for two years, and payroll records for three years.”

  18. 18Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
    What the source says

    “Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”

    “Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”

    “Records on which wage computations are based should be retained for two years,”

  19. 19BOLI: For Workers, State of OregonOregon Bureau of Labor and Industries · Official source · Checked www.oregon.gov/boli/workers/Pages/default.aspx
    What the source says

    “971-245-3844”

  20. 202025 Oregon Laws chapter 311, SB 430Oregon Legislative Assembly · Official source · Page updated · Checked Pinpoint: Chapter 311, enactment footerwww.oregonlegislature.gov/bills_laws/lawsstatutes/2025orLaw0311.pdf
    What the source says

    “Effective date January 1, 2026”

15Methodology

How we research these pages

Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.

  1. 1

    Official sources only

    Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.

  2. 2

    Every figure is linked

    Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.

  3. 3

    Re-checked on a schedule

    Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.

  4. 4

    Gaps are left out, not guessed

    If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.

What changed on this page

  1. First version of this page. Every figure was checked against the official sources listed on this page.

Researched by Ferry's tip operations research team. Last reviewed .

Changes to the law itself are listed in What changed and what's coming.

16Every state

Tip laws in every state

Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.