Employers in Ohio should be aware that starting January 1, 2015, the minimum wage for non-tipped employees will increase to $8.10 per hour, up from $7.95. For tipped employees, the minimum wage will increase to $4.05 per hour, up from $3.98. Employers with tipped employees need to keep in mind that if tips don’t bring the employee’s base wage up to $8.10 per hour, the employer must make up the difference. This increase puts Ohio’s minimum wage level at the 10th highest in the country, tied with Michigan.
The new minimum wage only applies to businesses with gross receipts of more than $297,000 per year. For companies with annual gross receipts of $297,000 or less, and for employees under the age of 16, the minimum wage will be $7.25/hour for non-tipped employees, and $2.13/hour for tipped employees. This lower tier of minimum wage is tied to the federal minimum wage, and therefore any changes will occur only when Congress changes the federal minimum wage.
These changes to the Ohio minimum wage were put in place by a constitutional amendment enacted by the voters in 2006. The amendment increases the minimum wage every year based on the Consumer Price Index (CPI).
As Ohio employers budget for the upcoming year, they should also keep in mind that other expenses are based on wages, and therefore might increase as well. In particular, workers’ compensation, unemployment compensation, and other taxes might increase in 2015 due to the increase in minimum wage. Employers are also required to post the most current minimum wage poster in the workplace by January 1. A PDF of that poster can be found here.
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