Oregon · Wages · Updated April 2026

Oregon: no tip credit allowed. Tipped workers earn full minimum + tips.

Oregon is one of only seven states that prohibit a tip credit entirely. Tipped workers must receive the full applicable minimum wage — Portland Metro $16.30, Standard $15.05, or Non-urban $14.05 — in cash, with tips on top. There is no service-rate cash wage like Massachusetts ($6.75) or Florida ($9.98).

Tip Credit
Prohibited
Cash Wage Required
Full Minimum
Authority
ORS 653.035(3)
Active

No Tip Credit — Cash Wage = Full Minimum

Enforces full minimum wage in cash for all tipped workers regardless of tier. Tip credit attempts are blocked at shift save. Tip pooling allowed but cannot reduce cash wage.

Block tip credit on cash wage
Flag tip pool participation
Always running

What those rules do as a tipped worker's shift is created.

The hero card configuration: Block any cash-wage reduction below applicable tier minimum, Flag on tip pool participation tracking.

Block · on cash wage below tier minimum

When a manager attempts to save a tipped worker shift at a cash wage below the applicable tier minimum (Portland Metro $16.30, Standard $15.05, Non-urban $14.05), the save fails. "Cannot save: Oregon does not allow a tip credit. Cash wage must equal the full applicable minimum wage."

Flag · on tip pool participation

Tip pooling is allowed in Oregon but management and the business cannot share in the pool. Teambridge flags pool participants and surfaces any management designations for review.

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The rule, plainly stated

Tips belong to workers — they cannot offset wages.

Oregon's no-tip-credit rule is one of the strongest worker-side wage protections in the country. Tips are entirely the worker's; the employer cannot count them toward the minimum wage obligation, no matter how high the tip income.

ORS 653.035(3) — Allowances: An employer shall not include any amount received by an employee as a tip from a guest, patron, or customer in calculating the employer's payment of the minimum wage to the employee.

Tips do not count toward minimum

Oregon law explicitly prohibits employers from counting tips toward the minimum wage obligation. A server who earns $30/hr in tips on a busy Friday still must receive the full $16.30/hr in cash from the employer if working in Portland Metro. The total compensation = cash wage + tips, not cash wage made up to minimum by tips.

Tip pooling allowed with restrictions

Employers may require tip pooling among employees who customarily and regularly receive tips. Mandatory tip pools cannot include managers, supervisors, or the business itself. Voluntary pools have wider latitude. Pool distributions must be tracked and documented.

On autopilot

Teambridge enforces the no-tip-credit rule at shift save.

Multi-state operators coming from credit-allowing states are the most common source of compliance errors. The block runs at every shift save.

01 · Cash wage validation

Tipped role flag → full minimum required.

When a shift is created for a worker in a tipped role (server, bartender, valet), the cash wage is validated against the full applicable tier minimum — not a reduced service rate. Below the floor → save blocked.

02 · Tip pool tracking

Pool participants logged.

Workers participating in a mandatory or voluntary tip pool are tracked. Pool distributions are recorded and documented for audit purposes.

03 · Manager exclusion check

Pool participants checked against role.

When a worker is added to a tip pool, Teambridge verifies the worker is not in a management or supervisory role. Manager pool participation → save blocked, with the prohibition surfaced.

04 · Multi-state import gating

Imported tipped roles validated.

When a multi-state operator imports tipped role configurations from a credit-allowing state (e.g., California-headquartered chain expanding to Oregon), Teambridge validates that no tip credit is configured for the Oregon roles. Bad imports → blocked.

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FAQ

People also ask.

Can Oregon employers take a tip credit?
No. Oregon explicitly prohibits employers from counting tips toward the minimum wage obligation. Tipped workers must receive the full applicable tier minimum in cash, with tips entirely on top. ORS 653.035(3) is the controlling statute.
Is tip pooling allowed in Oregon?
Yes — but with restrictions. Mandatory tip pools may include only employees who customarily and regularly receive tips (servers, bartenders, bussers, food runners). Managers, supervisors, and the business itself cannot participate. Voluntary pools have wider latitude.
Are service charges the same as tips?
No. Mandatory service charges (banquet fees, party charges) are the employer's property and treated as wages when distributed. Voluntary tips left by customers belong entirely to the worker. The distinction matters for both wage calculation and tax treatment.
How does this differ from California or Washington?
Oregon, California, and Washington are all no-tip-credit states. All three require full minimum wage in cash plus tips on top. The only differences are the underlying minimum wage levels (CA $16.50, WA $17.13, OR Portland Metro $16.30/Standard $15.05/Non-urban $14.05).
What about credit card processing fees on tips?
Employers may not deduct credit card processing fees from tips left on cards in a way that reduces the worker's tip below what the customer left. Oregon BOLI guidance limits permissible deductions to actual processing costs and only with worker authorization.
Can I split tips with kitchen staff?
Yes — Oregon allows tip pools that include 'back-of-house' workers (line cooks, dishwashers) as long as no tip credit is taken. This was clarified by 2018 federal CAA amendments and Oregon BOLI guidance. The key constraint is no managers/supervisors/business in the pool.