Ohio’s minimum wage rate has increased as of Jan. 1, 2019. The new rate for non-tipped employees is $8.55 per hour, a 25 cent increase from the former rate of $8.30 per hour. For tipped employees, the rate has increased to $4.30 per hour from $4.15 per hour. The new minimum wage will apply to employees of businesses with annual gross receipts of more than $314,000 per year.
The increase was required by Article II, Section 34a of the Ohio Constitution. Passed by Ohio voters in November 2006, the provision states that Ohio’s minimum wage shall increase on Jan. 1 of each year by the rate of inflation. The state minimum wage is tied to increases in 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 2.9 percent over the twelve-month period from Sept. 1, 2017, to Aug. 31, 2018.
For employees at some smaller businesses, and for employees who are 14- and 15-year-olds, the state minimum wage is $7.25 per hour. For these employees, the state wage is tied to the federal minimum wage, which requires an act of Congress and the president’s signature to change.
Employers can access the 2019 Minimum Wage poster for display in their places of business from the Department of Commerce’s website.