How to price a menu in Oregon where there is no tip credit

In most states, a restaurant can pay a server a low base wage and count tips toward the minimum. Oregon does not. A server in Portland, Bend or Coos Bay gets at least the full state minimum wage from the employer, and tips come on top. That rule, plus the lack of a state sales tax, changes how an Oregon owner should think about menu prices and the check. Here is how the pieces fit. Service charges need care, so check with the Bureau of Labor and Industries, known as BOLI, before you change anything.

What are Oregon's minimum wages in 2026?

BOLI announced in April 2026 that from July 1, 2026 the standard minimum wage is $15.55 an hour, the Portland metro rate is $16.80 and the nonurban county rate is $14.55. Each rose by 50 cents from the previous year. Oregon does not allow a tip credit, so these rates apply to servers, bartenders and other tipped staff in full. The next adjustment is due July 1, 2027, and BOLI normally announces it by the end of April. Know which tier your restaurant falls in, since Portland metro covers the area inside the urban growth boundary.

Why does no tip credit change pricing?

Because the restaurant carries the full wage cost, menu prices have to cover it. A restaurant in a state with a tip credit can keep prices lower and let tips make up the difference for servers. In Oregon, the same dish is likely to cost more, and guests tip on top. Many diners from other states see this as double paying, but the money is not the same: the base wage is wages, and the tip is a reward for service. Price your menu so that the whole team, not only the floor, is paid fairly, and be comfortable explaining it.

How do you set prices that cover the wage?

• Calculate labor as a share of sales for each shift and each day part.
• Recost your top ten dishes against current food prices.
• Raise the dishes with the largest gap first, and by amounts guests notice least.
• Keep two or three entry-level dishes that regulars see as fair value.
• Review prices twice a year instead of waiting for a shock.
• Use specials to test a higher price before it goes on the permanent menu.

Do not use arithmetic you cannot defend. Use your own sales mix and your own invoices.

Can you add a service charge?

Yes, with care. A mandatory service charge is not a tip under Oregon law, since a tip is voluntary and set by the customer. How the money must be handled is a question for BOLI, so ask BOLI or an employment lawyer before adding one. If you add a charge, say clearly on the menu and the check what it is for and whether it replaces the tip. Surprise fees anger guests.

What are the rules on tip pools?

Tip pooling among employees is allowed in Oregon, but owners and managers cannot take tips or use them for business expenses. A separate guide covers who can share in a pool. Whatever your system, write it down, give it to staff at hire and keep records of what is collected and paid out.

How should the check look?

Oregon has no sales tax, which makes the check simpler than in most states. The total is the menu price plus tip. Make the tip line clear, avoid defaults that guests do not expect and train servers to explain any service charge in a sentence. A check that surprises a guest costs more than the amount in question.

Should you ever go no-tip?

Some restaurants in other states have tried a no-tipping model with higher prices and a built-in service charge, with mixed results. Oregon's no-tip-credit rule makes the idea less of a leap, but it still needs careful planning: how prices read on the menu next to competitors, how you pay the team and how you explain it to guests. If you consider it, test it in one part of the business or for a limited time and talk to your staff first.

How do you handle guests from tipping states?

Visitors from states with a tip credit may be unsure what to tip. A short line on the menu, such as a note that all of our team is paid at least Oregon's minimum wage and tips are appreciated, helps without pressure. Keep the tone friendly. Do not suggest an amount unless you are sure it fits your guests.

Do you want guests who understand what they are paying for?

A fair price is easier to hold when guests know what they are getting. Mosey is a food-first app where diners find places by dish, mood and neighborhood and rate what they actually ate. A restaurant can host a menu page, show its best-rated dishes and reply to guests, so the dish and its price are seen together before anyone sits down.

More guides for your business:

• Oregon Fair Work Week law: does it apply to your restaurant?
• Oregon alcohol service permit for restaurant staff: OLCC rules
• Paid Leave Oregon for restaurant employers: contributions and notices

More in the US guides for food businesses.