Ohio’s minimum wage increasing by dime

Minimum wage will be going up by a dime for most workers in Ohio.

The state’s minimum wage is scheduled to increase on Jan. 1 to $8.80 per hour for non-tipped employees. Tipped employees will see an increase to $4.40 per hour.

The minimum wage will apply to employees of businesses with annual gross receipts of more than $323,000 per year.

The current 2020 Ohio minimum wage is $8.70 per hour for non-tipped employees and $4.35 for tipped employees.

The constitutional amendment passed by Ohio voters in November 2006 states Ohio’s minimum wage shall increase on Jan. 1 of each year by 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 1.4 percent over the 12-month period from Sept. 1, 2019, to Aug. 31, 2020.

For employees at smaller companies and for 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 of $7.25 per hour, which requires an act of Congress and the President’s signature to change.