On January 1, 2020, Ohio’s minimum wage will increase to $8.70 per hour for non-tipped employees who work for employers with annual gross receipts of more than $319,000, the Ohio Department of Commerce announced this week. Tipped employees working for such employers must be paid $4.35 per hour, plus tips, starting on January 1, 2020.
For Ohio employees working for employers with $319,000.00 or less in annual gross receipts, and for 14- and 15-year old employees, the minimum hourly wage is set at the federal minimum wage, which is currently $7.25 per hour.
Employers can access the 2020 State of Ohio Minimum Wage poster at the Ohio Department of Commerce’s website.
For applicable employers, the change starting January 1, 2020, is a 15 cent increase in the non-tipped minimum wage, and a 5 cent increase in the minimum hourly wage that must be paid to tipped employees. Pursuant to a 2006 amendment to the Ohio Constitution, the Ohio minimum wage is subject to adjustment each year based on the Consumer Price Index for urban wage earners and clerical workers.
As a reminder, tipped employees must still earn at least the applicable non-tipped minimum wage rate after factoring in tips. For example, if a tipped employee of an Ohio employer with annual gross receipts of more than $319,000 is paid $4.35 per hour in wages, but does not earn $8.70 per hour including tips, the employer must make up the difference so that the employee earns at least $8.70 per hour.
Prior to January 1, 2020, employers should review their records to verify that employees are paid at least the applicable minimum wage. Employers should also always be mindful that, with very few exceptions, non-exempt employees (whether hourly or salaried) must be paid one and one-half of their regular rate of pay for all hours worked over 40 in a workweek.
If you have any questions regarding Ohio’s minimum wage law, or for assistance with wage/hour compliance in general, please feel free to contact Tom Green, Steve Beiting, or any other K|W|W attorney.