Oregon tip pooling laws & tipped minimum wage
Oregon is one of only seven states that ban the tip credit: every tipped worker gets the full minimum wage in cash, and tips are paid on top.
| Regular minimum wage | $15.55/hr |
| Minimum cash wage for tipped workers | $15.55/hr (full minimum) |
| Maximum tip credit | Not allowed |
| Tips belong to | Employees — always |
A tip credit lets an employer count your tips toward the minimum wage it owes you. Rates reviewed July 2026. Rates change — confirm with the Oregon labor department. Not legal advice.
What's specific to Oregon
Oregon bans the tip credit. Rates vary by region and adjust every July 1; as of July 1, 2026 the standard rate is $15.55, Portland metro is $16.80, and non-urban counties are $14.55.
Oregon bans the tip credit — your tips are on top of full pay
Oregon does not allow a tip credit. Your employer must pay you the full minimum wage in cash, and every tip you earn is yours on top of that wage. There is no tipped minimum and no shortfall math, because your base pay never depends on how much you make in tips.
This means a tipped worker in Oregon is guaranteed the full hourly minimum before a single tip is counted — tips are paid on top of that wage.
Oregon uses three regional minimum wages, updated every July 1
Which minimum applies to you depends on where you work. As of July 1, 2026 the rates are $16.80 an hour in the Portland metro area (inside the urban growth boundary), $15.55 in the standard counties that cover most of the state, and $14.55 in the non-urban counties.
These three rates adjust every July 1. From 2027 onward they rise with the Consumer Price Index, so the exact figures change while the three-tier structure stays the same.
Because there is no tip credit, tip pooling works differently
Since Oregon employers already pay the full minimum wage, they may require a tip pool that includes back-of-house staff such as cooks and dishwashers. What an employer may never do is keep any of the tips for the business or for managers and supervisors.
If you believe your wages or tips are being handled improperly, you can file a claim with the Oregon Bureau of Labor and Industries.
Tip pooling in Oregon
Oregon follows the federal baseline for pooling: employers may require tip pooling, and because no tip credit exists, pools may legally include back-of-house workers like cooks and dishwashers. Managers and supervisors are always excluded.
One federal rule applies everywhere: managers and supervisors can never take from a tip pool. Separately, credit card processing fees may only be deducted from tips where state law allows it — and several no-tip-credit states restrict that practice too.
What this means for your tip-out
Because Oregon pays the full minimum wage before tips, your base pay does not depend on how the pool splits. Use the tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
Oregon tip law FAQs
What is the tipped minimum wage in Oregon?
Oregon does not allow a tip credit, so tipped employees must be paid the full minimum wage of $15.55/hr in cash. All tips come on top of that wage.
Is mandatory tip pooling legal in Oregon?
Oregon follows the federal baseline for pooling: employers may require tip pooling, and because no tip credit exists, pools may legally include back-of-house workers like cooks and dishwashers. Managers and supervisors are always excluded.
Can my manager take a share of the tip pool in Oregon?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Oregon. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
Can my Oregon employer pay me less than minimum wage because I earn tips?
No. Oregon prohibits the tip credit, so you must be paid the full regional minimum wage in cash regardless of your tips. Your tips are always in addition to that wage, never a substitute for part of it.
Can cooks and dishwashers share in a tip pool in Oregon?
Yes. Because Oregon employers pay the full minimum wage and take no tip credit, a mandatory tip pool can include back-of-house employees. Owners, managers, and supervisors still may not take any share of the tips.