Oregon’s minimum wage changes have historically been tied to the Consumer Price Index. However, in 2016, the State of Oregon implemented an innovative tiered minimum wage policy that allows the minimum wage to vary by geographic region. Under this policy, the highest minimum wage tier is set for the Portland Metropolitan Area, followed by a lower tier for other urban counties and the lowest for rural counties (Figure 1). The regulatory drive behind this tiered policy was a recognition of the regional economic differences in wages, unemployment, and cost of living within the state. Living in the Portland metro area tends to be more expensive than living in the rest of the state, and it is generally less expensive to live in non-urban counties compared to those near urban centers. The policy was designed to be less burdensome for employers outside the Portland Metro area, as it could be more difficult for them to pass higher wage costs on to consumers in the form of higher prices.