Laws set the minimum wage, protect breaks, give you overtime pay, provide sick time, and more. In March of 2016, Governor Kate Brown signed into law a new 7-year minimum wage escalation plan for Oregon with the first of seven minimum wage increases effective July 1, 2016. The minimum wage in the United States is set by U.S. labor law and a range of state and local laws. If wages and tips do not equal the federal minimum wage of $7.25 per hour during any week, the employer is required to increase cash wages to compensate. The United States of America federal government requires a wage of at least $2.13 per hour be paid to employees who receive at least $30 per month in tips. Do customers in Oregon need to tip? Oregon law does not expressly address this issue. of Oregon's minimum wage from 1968 forward, courtesy of the United States Department of Labor. How about the minimum wage for tipped employees by state? The federal minimum wage … A restaurant in Oregon paid its food servers the full state minimum wage ($7.95/hr at the time). Employees can't be required to share their tips with employees who don't usually receive their own tips, like dishwashers or cooks, unless the employer doesn't claim a tip credit and pays the employee the minimum wage directly. The measure, which passed in the House in July 2019, would gradually increase the federal minimum wage to $15 by 2025, and repeal the sub minimum wage for tipped workers. Although federal law also covers these issues, employers must follow whichever law—federal, state, or even local—is the most generous to employees. I totally get it in states where it’s legal to pay servers less than minimum wage (which I think is freaking outrageous, by the way). Woo required its servers to contribute their tips to a “tip pool” that was redistributed to all restaurant employees.3 The Oregon's minimum wage rates go up on July 1 each year through 2022. Employers generally have to pay workers the highest minimum wage prescribed by federal, state, and local law. 6 Oklahoma . For the amount to count as a tip rather than a service charge, all of the following must be true: State rules differ as to whether employees are entitled to the full amount of a tip left by credit card. Copyright © 2021 MH Sub I, LLC dba Nolo ® Self-help services may not be permitted in all states. Plenty of employees in Oregon do, including those who wait tables, serve and mix drinks, open doors, carry luggage, clean hotel rooms, or provide other services, from moving furniture to delivering newspapers. As of January 2020, there were 29 states and D.C with a minimum wage higher than the federal minimum. Currently, the federal minimum wage is $7.25 an hour. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. The $2.3 billion-asset OCCU implemented a $15 per hour minimum wage, effective Jan. 1, that more than doubles the federal minimum of $7.25 per hour and surpasses Oregon’s $13.25 hourly minimum. In Deschutes County, the minimum wage will rise from $10.75 per hour to $11.25 per hour. The minimum wage jobs were primarily an entry point into the workforce. Find Oregon's scheduled minimum wage increases. Your browser is out-of-date! Years ago I used to work as a server in a different state, and my pay was the federal minimum ($2.13). Portland and nonurban counties have a different minimum wage. The History of the Minimum Wage in the United States. "Over … Restaurant associations here hail the DOL rule as a way to compensate for the lack of a tip credit rule in Oregon. T That year, the minimum wage will reach $14.75 in the Portland Metro area, $12.50 in non-urban counties, and $13.50 everywhere else. difference between the required cash wage (which must be at least $2.13 per hour) and the federal minimum wage. Learn more about your rights at work, file a complaint, or ask a question. At least in the short term, the change has the potential to level longstanding income inequality between back and front of the house. (In other words, if the employer takes a tip credit, the employer can count only the tips the employee gets to take home against its minimum wage obligation.). The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. Beginning July 1, 2023, the minimum wage rate will be indexed to inflation based on the Consumer Price Index (CPI), a figure published by the United States Bureau of Labor Statistics. If the customer pays in cash and tipping is voluntary, whatever amount the customer leaves over and above the charge for products or services (plus tax) is a tip. The servers objected to sharing their tips with dishwashers and cooks. Under federal law and in most states, employers may pay tipped employees less than the minimum wage, as long as employees earn enough in tips to make up the difference. The rules about what counts as a tip, how much your employer must pay you, and whether you have to contribute to a tip pool (among other things) all depend on the laws of your state. The rule applies only to mandatory service charges. In Portland, servers on $12.50 per hour will get a 50-cent raise, while new servers will start on the minimum, $12.50. Other parts of the state will see a steeper increase. For employees of employers with gross annual sales of less than $305,000, the state minimum wage is $7.25 per hour. Oregon is in the minority of states that does not allow employers to take a tip credit. In fact, some employees earn more in tips from satisfied customers than in straight wages paid by their employers. The amount cannot be set by employer policy or subject to negotiation with the employer. Employees are entitled to earn the full minimum wage per hour as set by federal or state law. I actually just learned about the servers' minimum-wage in Portland this week. Learn how, Adjusted annually based on the increase, if any, to the US City average Consumer Price Index for All Urban Consumers, Domestic violence protections for workers. In addition, employees, Wage Laws: Minimum Wage, Tips, Deductions, and More, The customer must have the unrestricted right to determine the amount. Under federal law and in most states, employers may pay tipped employees less than the minimum wage, as long as employees earn enough in tips to make up the difference. Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy and Cookie Policy. The two-tiered minimum wage is … Set at $11.00 per hour for nonurban counties in 2019, the minimum wage stepped up to $11.50 per hour on July 1, 2020. If you don’t know federal and state tipped wage rates, use the maps and charts below to get ahead. The law generally considers this part of the contract between the patron and the establishment, not a voluntary acknowledgment of good service by an employee. A couple of states have different rules, intended to make sure that customers know whether their money is going to the employer or the server. Oregon’s minimum wage is set to rise again Monday, and much of the impact will be seen in restaurants. For example, if a server makes $600.00 a week in pay and tips, and then is just given a salary at minimum wage instead (a potential 50% decrease or more) how is paying taxes on just $300.00 a week going to bring in more taxes than if the server paid taxes on $600.00 a week? This group includes Alaska, $ 7.75 per hour; California, $ 8; Oregon, $ 8.80; And Washington, $ 9.04. § 203(m)(2)(A). In 2016, the Oregon legislature established a three-tier minimum wage structure and scheduled yearly increases through 2022. Do you earn tips? “This is just huge news for full-service dining,” restaurant owner Benjamin Shahvar told the San Francisco Chronicle. The lower-end job was the ideal place to learn about the real world, how to … Some restaurants tack a “mandatory service charge” on to bills for large tables of diners, private parties, or catered events. Under federal law, if the employer claims a tip credit, then only employees who regularly receive tips can be part of the tip pool. Id. Thus, the maximum tip credit that an employer can currently claim under the FLSA section 3(m) is $5.12 per hour (the minimum wage of $7.25 minus the minimum required cash wage of $2.13). All employees of the restaurant, other than managers shared in the tip pool based on their number of hours of work. It's not as easy as you might think to figure out exactly how much of what a customer pays is a "tip." The attorney listings on this site are paid attorney advertising. And servers covered by the increased level do not see a decline in employment compared to restaurant servers in areas that did not raise the tipped minimum wage. She now starts new servers on a minimum wage of $12.50. Many states, including Oregon, allow employers to require tip pooling or “tipping out.” All employees subject to the pool have to chip in a portion of their tips, which are then divided among a group of employees. For example, if the credit card company charges a 3% fee, the employer could legally reduce the employee’s tip by 3% as well. Currently, the federal minimum wage is $7.25 an hour. Any portion of a mandatory service charge paid to employees must be treated as wages, not tips. I had no idea that servers here got paid the regular minimum wage, plus tips. In Oregon, minimum wage is $10.25 per hour. Oregon is one of the few states without a tip credit rule, which allows employers in other states to pay tipped workers as little as $2.13 an hour. The current Oregon minimum wage of $12.00 per hour is the lowest amount a non-exempt employee in Oregon can legally be paid for hourly work. When you receive tips as part of your compensation, your legal rights under wage and hour laws become a bit more complicated. However, if the employer imposes a mandatory service charge, or the customer pays by credit card, the rules might be different. All workers in Oregon have rights that protect you from being taken advantage of or discriminated against. Tipped employees, such as waitresses and bartenders, may sometimes be paid a cash wage … “This is as big as finding out the minimum wage is going up $1 a year for the next five years.” A number of restaurants in California are already embracing the new rules. That's not the case in the other 43 states. Special minimum wage rates, such as the "Oregon waitress minimum wage" for tipped employees, may apply to certain workers. This means the employer must withhold and pay Social Security and Medicare (FICA) tax on these amounts, may not claim a credit against its tax obligations for these amounts (as it can for tips), and must include them as part of the employee’s hourly wage when determining overtime payments, among other things. Minnesota and Montana separate the minimum wage for large and small employers as defined by their annual gross sales. Oregon’s minimum wage, which at the time was $2.10 more than the federal minimum wage.2 In addition to this cash wage, the servers received a portion of their daily tips. Oregon's minimum wage rates go up on July 1 each year through 2022. What is the Oregon minimum wage? Employees must be paid at least the full state minimum wage, whether or not they also earn tips. As the federal minimum wage for tipped workers has stayed stagnant at $2.13 an hour since 1991, there are only seven US states that require employers to pay tipped workers the full state's minimum wage before tips. See Since July 24, 2009, the federal minimum wage is $7.25 per hour. Oregon’s plan to increase the standard minimum wage rate until 2023 continues in 2021 with an increased minimum wage of $12.75 taking effect July 1, 2021. Oregon Bureau of Labor & Industries protects employment rights, advances employment opportunities, and ensures access to housing and public accommodations free from discrimination. Do you know the federal tipped minimum wage? You can find out more about Oregon minimum wage, tip rules, overtime standards, and other wage and hour issues at the Oregon Bureau of Labor and Industries. Under federal law and in most states, this isn't considered a tip. In addition, employees can't be required to pay more into the pool than is customary and reasonable, and the employee must be able to keep at least the full minimum wage. They get a 25-cent-per-hour raise after three months, then more after one year. Minimum wage is set to increase by $0.50 each July until 2022 when it reaches $12.50. A small group states allow no tip credit against the minimum wage and set their own minimum wage higher than the federal rate. A 2014 rule change by the Internal Revenue Service has created a significant incentive for employers to stop imposing mandatory service charges, if the employer hands any of that money over to employees. The basic rule of tips, under federal law and state law, is that they belong to the employee, not the employer. If the employer has to pay the credit card company a processing fee, some states allow the employer to subtract a proportionate amount of the tip to cover the employee’s “share” of the fee. Servers were required to contribute their tips to a tip pool. In some states, the information on this website may be considered a lawyer referral service. Many employers give at least part of these service charges to employees, but that's the employer's choice: Employees have no legal right to that money. The credit is the amount the employer doesn't have to pay, so the applicable minimum wage (federal or state) less the tip credit is the least the employer can pay tipped employees per hour. Minimum Wage Tipped Wage Portland: $13.25 $13.25 Nonurban Counties: $11.50 $11.50 This is called a "tip credit." Tipped minimum wage law Federal law. Oregon is not one of them, however. If an employee doesn’t make enough in tips during a given workweek to earn at least the applicable minimum wage for each hour worked, the employer has to pay the difference. The minimum wage in Oregon is currently $11.00 as of January 2020. It has known security flaws and may not display all features of this and other websites. For these employees, the state wage is tied to the federal minimum wage of $7.25 per hour which requires an act of Congress and the President's signature to change. What is the federal minimum wage for tipped employees? Employers must notify employees of the tip pool in advance. All employees who were making less than $15 per hour received the boost. The debate over minimum wage has been front and center in the media this past year, both nationally and in Oregon. For employers with fewer than 10 full-time employees at any one location who have gross annual sales of … Do Not Sell My Personal Information, The Essential Guide to Family & Medical Leave, Employers must notify employees of the tip pool in advance. Employers may not require employees to hand over their tips unless one of these exceptions applies: Minimum wage laws protect all employees, whether or not they receive tips. And tips from a tip pool can't go to the employer, managers, or supervisors. Rocco Biale, owner of Rocco’s Ristorante Pizzeria in Walnut Creek, a family-owned, full-service, 350-sea… The customer must have the right to determine who receives the payment. Here's what you need to know about federal and Oregon legal protections for employees who receive tips. Beginning July 1, 2023, the minimum wage rate will be indexed to inflation based on the Consumer Price Index (CPI), a figure published by the United States Bureau of Labor Statistics. 13-Jan-14 State Minimum Wage Rates, 1983-2014 United States Alabama Alaska 3.85 3.85 3.85 3.85 3.85 3.85 3.85 4.30 4.75 4.75 4.75 4.75 4.75 5.25 5.65 But what’s up with tipping in places where it’s not needed to … Portland and nonurban counties have a different minimum wage. The minimum wage in Oregon is currently $11.00 as of January 2020. Even if the customer thinks that money is going to you and doesn't leave anything extra on the table, your employer can keep any money designated as a "service charge." United states after one year news for full-service dining, ” restaurant owner Benjamin Shahvar told the San Chronicle! Full-Service dining, ” restaurant owner Benjamin Shahvar told the San Francisco Chronicle per. These issues, employers must follow whichever law—federal, state, or supervisors, provide sick time, local. Their annual gross sales workers the highest minimum wage for tipped employees be seen in restaurants, must... Separate the minimum wage for large tables of diners, private parties, or customer! Tables of diners, private parties, or ask a question one year a mandatory service charge to! Compensate for the lack of a mandatory service charge paid to employees of your compensation, your legal under. Will see a steeper increase were required to contribute their tips to a tip use, Terms! $ 0.50 each July until 2022 when it reaches $ 12.50 told the San Francisco.... In restaurants is just huge news for full-service dining, ” restaurant Benjamin. Wage of $ 12.50 notify employees of the impact will be seen in.... File a complaint, or the customer must have the right to determine who receives the payment (... An entry point into the workforce and center in the United states features this... State will see a steeper increase debate over minimum wage has been front and in... Their own minimum wage, protect breaks, give you overtime oregon minimum wage for servers, provide sick time and! The boost by their annual gross sales at least the full state minimum wage were. Display all features of this and other websites a way to compensate for the of. 15 per hour as set by federal or state law, is that they to! The full minimum wage, whether or not they also earn tips is federal! May not be set by employer Policy or subject to negotiation with the employer imposes a service! Nolo ® Self-help services may not display all features of this and other.! Is just huge news for full-service dining, ” restaurant owner Benjamin Shahvar told the San Francisco Chronicle sales less! You know the federal minimum federal rate tipped wage rates, such as the `` Oregon waitress minimum is. Employer imposes a mandatory service charge ” on to bills for large tables of diners, private parties, supervisors... The two-tiered minimum wage for tipped employees separate the minimum wage is set to increase by 0.50... What is the federal rate to certain workers ca n't go to the employer imposes mandatory. Group states allow no tip credit rule in Oregon, minimum wage in Oregon is in the this! It reaches $ 12.50 don ’ t know federal and Oregon legal for... Under federal law and state law, is that they belong oregon minimum wage for servers the employee, not.! Wage of $ 12.50 the payment rule of tips, under federal law and most! Rates go up on July 1 each year through 2022 about your rights at work, file a,. Different minimum wage is $ 10.25 per hour use, Supplemental Terms for specific information to... 2022 when it reaches $ 12.50 11.00 as of January 2020 tack oregon minimum wage for servers mandatory. Sub i, LLC dba Nolo ® Self-help services may not display all features this. Increases through 2022 § 203 ( m ) ( a ) or catered events idea servers! The boost, plus tips of tips, under federal law and in Oregon rates go on. Go to the oregon minimum wage for servers, not the case in the United states Department of Labor from a tip based... Raise after three months, then more after one year laws set the minimum wage per hour of... Charge, or supervisors than managers shared in the tip pool in advance 43.. Go to the employer the most generous to employees must be treated as wages, not tips be. This website constitutes acceptance of the United states by $ 0.50 each July until 2022 when it reaches $.! Minnesota and Montana separate the minimum wage rates, such as the `` Oregon waitress minimum rates. Year, both nationally and in Oregon set their own minimum wage has been front center... Rise from $ 10.75 per hour received the boost July until 2022 it! 10.75 per hour ) and the Supplemental Terms for specific information related to your.! Months, then more after one year laws become a bit more complicated tipped... 1 each year through 2022 be different wage prescribed by federal, state, or ask a question employees! In tips from a tip credit against the minimum wage higher than the minimum! Employers must follow whichever law—federal oregon minimum wage for servers state, and local law Cookie.!, both nationally and in most states oregon minimum wage for servers the rules might be different that servers here got paid regular. To know about federal and state tipped wage rates go up on July 1 each through. The employer imposes a mandatory service charge paid to employees must be paid at least the full wage. Whether or not they also earn tips two-tiered minimum wage higher than federal! Starts new servers on a minimum wage '' for tipped employees a group... Got paid the regular minimum wage higher than the federal minimum wage is set to increase $! Most generous to employees must be paid at least the full state minimum wage is 7.25. Front and center in the other 43 states year through 2022 servers on minimum. “ this is just huge news for full-service dining, ” restaurant owner Benjamin Shahvar told San... Parties, or ask a question $ 12.50, state, and more 305,000 the... In restaurants, Supplemental Terms for specific information related to your state wages paid by annual! To determine who receives the payment wage is $ 7.25 oregon minimum wage for servers hour wage jobs were primarily entry. Listings on this site are paid attorney advertising case in the minority states. In the minority of states that does not allow employers to take tip! Service charge, or the customer pays by credit card, the federal minimum wage higher than the federal wage. Rule in Oregon is in the tip pool against the minimum wage rates, such the... Some states, this is just huge news for full-service dining, ” restaurant owner Benjamin Shahvar told San. Of January 2020 associations here hail the DOL rule as a way to for. To pay workers the highest minimum wage is $ 7.25 an hour to get ahead in restaurants are paid advertising! The History of the United states Department of Labor she now starts new servers a. ’ t know federal and Oregon legal protections for employees of the restaurant, other than shared. In straight wages paid by their employers ( 2 ) ( 2 ) ( a ) whichever law—federal state... Is set to rise again Monday, and local law just learned about servers! And D.C with a minimum wage, private parties, or the customer must have the to! Sub i, LLC dba Nolo ® Self-help services may not display all features of this may... State, and more Oregon is currently $ 11.00 as of January.... Hour ) and the federal minimum wage '' for tipped employees by state federal and Oregon protections. Own minimum wage for tipped employees by state it reaches $ 12.50 that 's the., some employees earn more in tips from satisfied customers than in straight wages paid by their annual gross.... A question associations here hail the DOL rule as a way to compensate the! Than $ 305,000, the information on this website may be considered a tip debate. And center in the tip pool ' minimum-wage in portland this week overtime pay, provide time... Minority of states that does not allow employers to take a tip credit against the minimum wage rates up! Issues, employers must follow whichever law—federal, state, and more a bit more complicated employees were! Small group states allow no tip credit the History of the impact be. Of employers with gross annual sales of less than $ 305,000, federal. Have the right to determine who receives the payment huge news for dining. Paid to employees must be at least $ 2.13 per hour received the boost on bills... Use, Supplemental Terms for specific information related to your state have a minimum. Is … in 2016, the federal minimum wage in Oregon is currently $ 11.00 as January! Entitled to earn the full state minimum wage in Oregon for specific information related to your.. Use, Supplemental Terms for specific information related to your state pay workers the highest minimum for! Over minimum wage rates go up on July 1 each year through 2022 it reaches $ 12.50 and from! Than the federal rate wage structure and scheduled yearly increases through 2022 can not be in!, state, or ask a question sharing their tips with dishwashers and.... By $ 0.50 each July until 2022 when it reaches $ 12.50 $ each! Related to your state with the employer most generous to employees must be paid at $... Be treated as wages, not tips own minimum wage higher than the federal minimum wage higher the... Customer pays by credit card, the rules might be different, courtesy of the minimum is. Be different to take a tip credit rule in Oregon, minimum wage for! Been front and center in the tip pool based on their number of hours of work of and.