Ohio's minimum wage increases with the inflation rate, thanks to a 2006 ballot initiative. Per the ballot initiative, the state minimum wage increases every January 1. The minimum wage increase is based on the consumer price index during the 12-month period before September 30.
In 2006, Ohio voters approved the ballot measure that raised the state minimum wage to $6.85 per hour from $5.15, with a wage increase adjusted annually. The goal was to help low wage workers retain purchasing power despite rising inflation In 2024, a proposal to raise the minimum wage to $15 per hour, failed to meet the requirements for the november ballot. The non-partisan research organization Policy Matters Ohio continues to push for raising the minimum wage.
Ohio's minimum wage distinguishes between tipped workers and non-tipped workers. State minimum wage laws also outline overtime requirements and employees who are exempt from the minimum wage.
What is the current minimum wage in Ohio?
As of January 1, 2024, Ohio's minimum wage is $10.45 per hour. This exceeds the federal minimum wage of $7.25 per hour.
Minimum wage for tipped employees
Ohio minimum wage laws define tipped employees as any employee making more than $30 per month in tips. This includes restaurant workers and many more minimum-wage workers in the hospitality industry.
Employers can use the tip credit to pay tipped employees a $5.25 sub minimum wage that totals the $10.45 state minimum wage when combined with workers' tips. To ensure compliance, employers must be able to show their tipped employees that they receive at least the minimum wage between tip credit and cash wages.
Minimum wage for non-tipped employees
Non-tipped employees do not receive tips of more than $30 per month. Ohio employers must pay non-tipped employees a minimum wage of $10.45 per hour. There are a few exceptions where employers can pay non-tipped workers the federal minimum wage of $7.25 per hour.
If an employer's gross revenue is less than $385,000, the employer can pay employees the federal minimum wage instead of the Ohio minimum wage.
Employees under the age of 16 can be paid the federal minimum wage instead of the Ohio minimum wage.
Minimum wage exemptions
Ohio minimum wage law outlines which employees are exempt from the state's minimum wage. This includes:
- Federal workers
- Baby-sitters or live-in companions to the sick or elderly whose primary work doesn't include housekeeping
- Individual employees paid by commission in an outside sales role
- Individuals who volunteer to perform duties for a state agency
- Individuals who provide charitable or volunteer work in a hospital or health institution
- Employees of a camp or recreational area for children under 18, operated by a non-profit
- Employees of a solely family-owned and operated business who are family members of the owner
Maintaining minimum wage compliance
For Ohio employers, maintaining accurate and accessible records is an important part of Ohio minimum wage law. This includes certain information regarding employees:
- Name
- Address
- Occupation
- Pay rate
- Amount paid each pay period
- Hours worked each day and week
These records must be readily available should the Ohio Department of Commerce conduct an inspection.
Overtime requirements
Ohio minimum wage law requires employers to pay employees an overtime rate of 1.5 times the employee's regular rate, or "time and a half," when the workweek exceeds 40 hours worked. This rule doesn't apply to employers grossing less than $150,000 per year.
Keep your business compliant with minimum wage laws
Per the Ohio minimum fair wage standards, business owners who violate minimum wage laws can be found guilty of a misdemeanor. The Ohio Department of Commerce's division of Wage & Hour Administration (WHA) oversees enforcement of state wage laws.
Changes to minimum wage laws can be disruptive at best, and destructive at worst. Keeping individual employee records and annual gross receipts is essential. Small mistakes can snowball into delays and headaches.
With technology, you can keep up with higher minimum wage mandates without skipping a beat. SpotOn's point-of-sale software helps you quickly streamline your data and time, all while remaining labor-compliant. And with SpotOn Teamwork, You can manage your schedule and tip-outs without stress, automate your payroll within minutes, and more, all through one central hub.
Want to learn more about the minimum wages in different states? Check out our different minimum wage guides below:
- Texas Minimum Wage Guide
- Michigan Minimum Wage Guide
- California Minimum Wage Guide
- Illinois Minimum Wage Guide
- New York Minimum Wage Guide
- Florida Minimum Wage Guide
DISCLAIMER: Everything here is just for informational purposes. The links and graphics may not be accurate and we encourage you to do your own research. Also, we can't guarantee results from following our advice. Always consult a professional for your specific situation.