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.)
Interested in submitting an article?
Submit your information to us today!Learn More