No tip credit — one fair wage state

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 pure upside.

Regular minimum wage$15.05/hr
Minimum cash wage for tipped workers$15.05/hr (full minimum)
Maximum tip creditNot allowed
Tips belong toEmployees — always

Rates reviewed June 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 (Portland metro is higher, non-urban counties lower) and adjust every July 1 — the standard rate is shown here.

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.

Two federal rules apply no matter what: managers and supervisors can never take from a tip pool, and credit card processing fees can 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 full minimum wage before tips, tip-outs hit less hard — your base pay is guaranteed regardless of how the pool splits. Still, the math matters on busy nights. Use our 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 $15.05/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 cut 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).

Tip rules in other states