Oregon's minimum wage increases, where applicable, are based on inflation and take effect July 1 each year, according to Oregon Bureau of Labor and Industries.
Key takeaways
- Where an inflation-based increase applies, it takes effect on July 1 each year, according to Oregon Bureau of Labor and Industries, so set the new rate in your tool before that date.
- Hours worked on or after 12:01 a.m. on July 1 must be paid at the newest applicable rate, according to Oregon Bureau of Labor and Industries, so record those hours apart from earlier hours.
- The new minimum wage for 2027 will be $17.73 an hour for most workers, according to Washington State Department of Labor and Industries, so keep that figure on Washington lines.
- Match each worker's employer size to the Maryland tier, according to Maryland Department of Labor, before you choose a figure.
The new figure needs to be in your till and payroll tools before those hours are recorded.
Before you change any rate, check your state and county rate, your employer size, and any minor workers' rates. The figures in this guide are tied to the Oregon, Washington and Maryland pages cited in each sentence, so use each figure for the state its page names. Where a page gives a date, as the Washington page does for 2027, check that date before you change a rate in your tool.
Minimum wage changes in your pay tool
Your till and payroll tools hold an hourly rate for each worker, so a state increase needs a matching change in those tools. For the till itself, see Cash drawer reconciliation: 4 steps from float to close and Record 6 cash totals before you close the shop till.
Oregon's page says increases to the minimum wage "are based on inflation (if applicable) and take effect on July 1st of each year," according to Oregon Bureau of Labor and Industries. You should record the date of each change beside the rate, so the July change is easy to find in your records.
The qualifier "(if applicable)" matters, because the source ties increases to inflation. You should keep that qualifier in your notes and should not assume an increase arrives in every year. Check the state page before you set the July rate. Label each Oregon figure with the Oregon name in your files, so it cannot be confused with a figure from another state.
Washington's page, according to Washington State Department of Labor and Industries, gives its 2027 figure in these words: "The new minimum wage for 2027 will be $17.73 an hour for most workers." You should give Washington workers their own line in the tool, so that figure is kept apart from Oregon and Maryland rates.
You should use the same record format for every state where you pay staff. Write the state, the effective date from the page, and the rate, so each line answers one question about the change. You should review the record again whenever a state page is updated.
The table below sets out the figures and qualifiers from each quoted source.
| Publisher | Figure or timing in the quote | Qualifier in the quote |
|---|---|---|
| Oregon Bureau of Labor and Industries | Increases take effect on July 1st of each year | Based on inflation (if applicable) |
| Washington State Department of Labor and Industries | The new minimum wage for 2027 will be $17.73 an hour; the minimum wage for 14-and 15-year-old workers will be $15.07 an hour | For most workers (the $17.73 figure) |
| Maryland Department of Labor | Large employers (51 or more employees) must pay at least $18.00 per hour; mid-sized employers (11 to 50 employees) must pay at least $16.50 per hour; small employers (10 or fewer employees) must pay at least $15.95 per hour | At least |
Before the change: find your rate
Confirm the effective date of the increase
You should confirm the effective date before you change any rate in your tool. July 1 is the date your Oregon rate table has to show when an increase applies. You should write that date beside the rate in your tool's notes, and put the same date on your payroll calendar as well.
You should treat that date as a reminder to check the state page, not as a promise that the rate will stay the same from one year to the next. You should open the state page in June each year rather than relying on memory of last year's date. Washington's page, according to Washington State Department of Labor and Industries, gives its figure for 2027, so note that year beside the Washington rate.
You should keep a short list of effective dates for every state where you pay staff, so each change can be checked on time. Place the list where the person who sets pay rates can find it without searching.
Use the rate for the work location
The location of the work matters, because the Oregon page refers to the county worked. You should record the work location for each worker before you set a rate. Oregon's page, according to Oregon Bureau of Labor and Industries, says "If you travel for work, your employer can pay you the rate in each county worked." You should list the county where each job is done beside each worker's record.
The Oregon page says "Typically, workers should be paid the wage for the county where you work 50% or more of your hours each week," according to Oregon Bureau of Labor and Industries. You should count each worker's hours by county for each week, and find the county that holds 50% or more of those hours. A worker who splits time between counties needs that weekly count before the rate is chosen.
You should create one rate line for each county in your payroll tool and label it with the county name, so staff can see which line applies. The 50% test is the typical method for Oregon work, as the Oregon page's word "Typically" shows, and an employer with travelling workers can pay the rate for each county worked. Keep Washington and Maryland lines separate from these county lines.
During the change: split-day pay
Pay two rates when a work period straddles the change
The Oregon page, according to Oregon Bureau of Labor and Industries, says "The hours worked on or after 12:01 a.m. on July 1 must be paid at the newest applicable rate." You should keep those hours on their own line in the tool, so the newest applicable rate is applied to them and not to earlier hours. Hours before 12:01 a.m. on July 1 are not covered by that sentence, so you should keep them on their own record.
You should record a start time and a finish time for each shift that begins before 12:01 a.m. on July 1 and ends after it. Shifts that cross midnight on June 30 need the same care, because the change falls at the start of July 1. Rounded time entries make the split harder to read, so you should keep exact minutes wherever your system records them.
You should check the time entries before the pay run closes, and confirm that each split line shows the right rate. If a shift is split across lines, you should keep both lines with the shift record, so the hours from before and after the change can be traced later. Your records should show the rate line used for each hour.
Employer size tiers
Match the rate to employer size where tiers exist
The Maryland page, according to Maryland Department of Labor, gives tiers by employer size. It says "Large employers (51 or more employees) must pay at least $18.00 per hour." You should match each Maryland worker to the tier that fits your employee count before you set the rate.
Mid-sized employers (11 to 50 employees) must pay at least $16.50 per hour, according to Maryland Department of Labor. Small employers (10 or fewer employees) must pay at least $15.95 per hour, according to Maryland Department of Labor. You should count your employees before you pick a tier, and write the count you used beside the rate.
You should keep each Maryland tier on its own rate line, so the figure for one tier is not confused with another. You should keep the employee count in the same record, so a later review can see which tier was chosen. If your count sits near a boundary, such as 10 or 11 employees, you should note the date you counted.
You should use the Maryland tiers for Maryland employers and should not apply them to Oregon or Washington staff. Read the tiers against the Maryland page each time you check the rate, because the figures are printed there. Your tool should show the tier name next to the rate so the choice is easy to audit.
Minor workers
Check the separate rate for 14 and 15 year olds
The Washington page, according to Washington State Department of Labor and Industries, says "The minimum wage for 14-and 15-year-old workers will be $15.07 an hour." You should record the age of each young worker in your payroll records, so the right line is chosen when pay is run.
You should keep the young-worker rate on its own line, so it is not copied onto adult staff lines. You should label that line with the age group, so anyone reading the tool can see what it covers.
You should not use the Washington youth figure for Oregon or Maryland staff, because the figure is stated on the Washington page. Keep that boundary in mind when you copy rates between states. A rate written for one state should stay under that state's label in your records.
You should review the young-worker line when a new young worker joins the shop, and you should check the Washington page when you update the Washington rate. Read the date on that page each time, so the figure you enter matches the version you checked. Ask whether a worker's age is on file before the pay run starts.
After the change: confirm the tool
After the change date passes, open each hourly rate in your till and payroll tools and compare it with the figure from the page for that state. You should work through the Oregon lines first, then the Washington lines, then the Maryland lines, so no state line is left unchecked. If a figure in your tool differs from the page, you should change the tool to match the page and record the difference.
You should compare each Maryland employer size tier against your current headcount, and compare each minor worker line against the age in your records. You should keep a short written note of each check, with the date it was completed and the name of the person who completed it. That note gives a later reviewer a clear trail to follow.
You should recheck the Washington page when a new year approaches, because the quoted 2027 figure is stated for that year. You should store each state page's date with its copy in your files, so a later reviewer can see which version you used (see the shop record retention guide). A dated copy makes the next annual check faster to run.
Illustrative example of one shop week
A worker's shift covers 8 hours and crosses into July 1. You record 6 hours before the change and 2 hours after it. The 2 hours are paid at the newest applicable rate. The 6 hours stay on the earlier line. In the same week the worker spends 30 hours in one county and 10 hours in another, so the first county holds 50% or more of the hours. These figures are illustrative hours, not a posted wage.
Your next step
The next step is to look up your state and county rate and compare it to every hourly rate in your pay tool. Use the pages named in this guide as your starting point, and keep the date of each page beside the rate you enter.
FAQ
When does Oregon's minimum wage increase take effect?
Oregon's inflation-based increases, where they apply, take effect on July 1 each year, according to Oregon Bureau of Labor and Industries.
What if a shift crosses July 1?
Hours on or after 12:01 a.m. on July 1 must be paid at the newest applicable rate, according to Oregon Bureau of Labor and Industries. You should record hours before 12:01 a.m. on July 1 separately from later hours. You should check any shift that crosses June 30 before the pay run closes.
Which county rate applies in Oregon?
Typically, the wage for the county where you work 50% or more of your hours each week applies, and an employer with travelling workers can pay the rate for each county worked, according to Oregon Bureau of Labor and Industries. You should count each worker's hours by county each week before you choose the rate.
What is Washington's 2027 minimum wage?
The Washington page says "The new minimum wage for 2027 will be $17.73 an hour for most workers," according to Washington State Department of Labor and Industries. You should use that figure for most Washington workers in your tool, and use the separate 14 and 15 year old rate for young workers. You should not read that figure as a rate for any other year.
What is Washington's rate for 14 and 15 year olds?
Washington's figure for 14 and 15 year olds is $15.07 an hour, according to Washington State Department of Labor and Industries. You should keep it on its own line in your payroll tool.
What are Maryland's employer size tiers?
Large employers (51 or more employees) must pay at least $18.00 per hour, mid-sized employers (11 to 50 employees) must pay at least $16.50 per hour, and small employers (10 or fewer employees) must pay at least $15.95 per hour, according to Maryland Department of Labor.