Ohio’s minimum wage is increasing on Jan. 1: Here’s what you should know

The minimum wage is set to go up in Ohio on Monday , with wages increasing by 35 cents per hour for non-tipped workers.

The state’s minimum wage increased every year since Ohioans passed a constitutional amendment in 2006. Here’s what you should know about the increase.

What is the minimum wage in 2024?

The minimum wage will be $10.45 an hour and $5.25 an hour for tipped workers. In 2023, it was $10.10 an hour and $5.05 an hour for tipped workers.

The minimum wage at companies with annual gross receipts of $385,000 or less per year and for 14- and 15-year-olds will be at $7.25 an hour.

How is the minimum wage determined?

The Ohio minimum wage is determined by the Consumer Price Index for urban wage earners and clerical workers over the 12-month period prior to September.

The index increased 3.7% from Sept. 1, 2022, to Aug. 31, 2023, according to the Ohio Department of Commerce.

The minimum wage for 14- and 15-year-olds and companies with annual gross receipts of $385,000 or less is tied to the federal minimum wage. The federal minimum requires Congress and the president’s signature to chance.

Why is the minimum wage increasing?

In November 2006, Ohio voters passed an amendment to the state’s constitution that increases the Ohio minimum wage by the rate of inflation every Jan. 1.

Who is not eligible for minimum wage?

Multiple types of workers are not eligible for the state minimum wage, including:

• Federal government employees

• Babysitters in an employer’s home or live-in companions to a sick or elderly person whose principal duties do not include housekeeping

• Salesmen compensated by commission or in a bona fide executive, administrative, or professional capacity, or computer professionals

• Employees of a family owned and operated business who are family members of an owner

• Employees of a camp or recreational area for children under 18 and owned and operated by a non-profit organization or group of organizations.

• Those who work or do charitable services nature in a hospital or health institution for which compensation is not sought

Efforts to further increase minimum wage

Raise the Wage Ohio, a chapter of a well-funded national campaign, has been working on placing a possible amendment to the Ohio Constitution to raise the minimum wage to $15 per hour on the ballot.

The amendment would create a $15 minimum wage by 2026 and then tie that wage to rise with inflation. It would also disallow the sub-minimum wage paid to tipped employees common in the restaurant industry.

The group said previously it hoped to have signatures for its petition collected by the end of this year.

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