Ohio’s minimum wage will increase to $8.70 per hour in 2020
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Tuesday, October 8, 2019

Ohio’s minimum wage will increase to $8.70 per hour in 2020

By Payroll and Entitlements Editorial Staff

The minimum wage in Ohio will increase to $8.70 per hour for non-tipped employees and to $4.35 per hour for tipped employees on January 1, 2020. The new minimum wage will apply to employees of businesses with annual gross receipts of more than $319,000 per year.

The current 2019 Ohio minimum wage is $8.55 per hour for non-tipped employees and $4.30 per hour for tipped employees and applies to employees of businesses with annual gross receipts of more than $314,000 per year.

For employees of smaller companies—$314,000 or less for 2019 and $319,000 or less for 2020—and for 14- and 15-year-old workers, the minimum wage rate is $7.25 per hour, which is tied to the federal minimum hourly wage rate.

The Constitutional Amendment (II-34a) passed by Ohio voters in November 2006 states that Ohio’s minimum wage shall increase on January 1 of each year based on the rate of inflation. The state minimum wage is tied to the Consumer Price Index (CPI-W) for urban wage earners and clerical workers for the 12-month period prior to September. This CPI-W index increased by 1.5% over the 12-month period from September 1, 2018, to August 31, 2019.

Employers are to display a copy of the 2020 Minimum Wage Poster in their places of business. (Ohio Department of Commerce, News Release, September 30, 2019.)

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