Overview of Ohio's Minimum Wage Requirements
As of 2024, the minimum wage in Ohio is $10.45 per hour, which is higher than the Federal Minimum Wage of $7.25 per hour. This applies to most employees in Ohio, with exceptions including tipped employees, some student workers, and other exempt occupations. Tipped employees, those who regularly receive more than $30.00 per month in tips, have a minimum wage of $5.25 per hour. Employers using the tip credit provision must ensure that tipped employees receive at least the minimum wage when direct or cash wages and the tip credit amount are combined.
The Ohio minimum wage is linked to a Consumer Price Index, intended to raise the rate along with inflation. The rate is re-evaluated yearly based on these values. This increase in minimum wage is a result of a Constitutional Amendment (II-34a) passed by Ohio voters in November 2006, which states that Ohio's minimum wage shall increase on January 1 each year by the rate of inflation.
Understanding Local Minimum Wage Variations
The minimum wage requirements in Ohio vary by county and city. For instance, as of January 1, 2024, the minimum wage in Franklin County, Ohio, is $10.45 per hour for non-tipped employees and $5.25 per hour for tipped employees. This applies to businesses with annual gross receipts of more than $385,000. For smaller companies with annual gross receipts of $385,000 or less, and for 14- and 15-year-olds, the minimum wage is $7.25 per hour, which is tied to the federal minimum wage.
In contrast, as of October 1, 2023, the minimum wage in Cleveland, Ohio, for some contract employees was set at $15.33 per hour, according to an amendment to the city's “Fair Employment Wage” law. However, as of January 1, 2024, the general minimum wage in Ohio, including Cleveland, is $10.45 per hour for non-tipped employees and $5.25 per hour for tipped employees.
Minimum Wage Eligibility and Exemptions
In Ohio, both non-tipped and tipped employees are eligible for minimum wage. However, there are exemptions to the minimum wage. These include individuals employed by the United States, baby-sitters in the employer's home, live-in companions to a sick, convalescing, or elderly person whose principal duties do not include housekeeping, outside salesmen compensated by commissions, volunteers for a public agency, individuals who work or provide personal services of a charitable nature in a hospital or health institution, individuals employed by a camp or recreational area for children under eighteen years of age owned and operated by a non-profit organization, and family members of an owner in a solely family owned and operated business.
The Ohio Revised Code Section 4111.14 further defines the eligibility for minimum wage. The term 'employee' refers to individuals employed in Ohio, excluding those who are exempted from the definition of 'employee' under 29 U.S.C. 203(e) or those exempted from the minimum wage requirements in 29 U.S.C. 213.
Minimum Wage Considerations and Compliance Tips
As a food business employer in Ohio, there are several key minimum wage legal and compliance considerations you need to be aware of. Firstly, according to Article II, Section 34a of the Ohio Constitution, employers must pay their employees a wage rate of not less than six dollars and eighty-five cents per hour, adjusted annually for inflation. However, there are exceptions to this rule. Employees under the age of sixteen and businesses with annual gross receipts of $250,000 or less are to be paid a wage rate not less than that established under the federal Fair Labor Standards Act.
Employers are also required to provide employees with their contact information at the time of hire and maintain a record of employee details and payments for at least three years. Employers must comply with investigations and cannot retaliate against employees for exercising their rights under this section. Violations can result in back wages, damages, and costs being awarded to the employee.
FAQs
- What is the current minimum wage in Ohio? As of 2024, the minimum wage in Ohio is $10.45 per hour for non-tipped employees and $5.25 per hour for tipped employees.
- Are there any exemptions to the minimum wage in Ohio? Yes, there are several exemptions including individuals employed by the United States, baby-sitters in the employer's home, live-in companions to a sick, convalescing, or elderly person whose principal duties do not include housekeeping, outside salesmen compensated by commissions, volunteers for a public agency, individuals who work or provide personal services of a charitable nature in a hospital or health institution, individuals employed by a camp or recreational area for children under eighteen years of age owned and operated by a non-profit organization, and family members of an owner in a solely family owned and operated business.
- What are the minimum wage requirements for tipped employees in Ohio? Tipped employees, those who regularly receive more than $30.00 per month in tips, have a minimum wage of $5.25 per hour. Employers using the tip credit provision must ensure that tipped employees receive at least the minimum wage when direct or cash wages and the tip credit amount are combined.
Information Source Links
- Ohio Minimum Wage
- Federal Minimum Wage
- Ohio Department of Commerce's Division of Industrial Compliance's Bureau of Wage and Hour
- Ohio Constitution
- Ohio Revised Code Section 4111.14
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