Jan 7, 2019

New Year, New Minimum Wage

Alert | Employment Services Alert

Hourly workers in Ohio earning minimum wage can expect an increase in their paychecks effective January 1, 2019. The state has increased the minimum wage from $8.30 to $8.55 per hour for non-tipped employees and from $4.15 to $4.30 per hour for tipped employees.

The minimum wage requirement applies to businesses with annual gross receipts of more than $314,000 per year.  Smaller employers with annual gross receipts of less than $314,000 per year are exempt from the minimum wage increase and instead must pay their employees no less than the federal minimum wage of $7.25 per hour. Furthermore, some individuals are exempt from Ohio’s minimum wage requirements, including, but not limited to, United States government employees; individuals employed as baby-sitters or live-in companions hired to work in the employer’s home; and outside salespeople compensated by commissions.

Ohio’s minimum wage increase is the result of a constitutional amendment approved by Ohio voters in November 2006. The amendment provides that Ohio’s minimum wage shall increase on January 1 each year by the rate of inflation.  

As a reminder to employers, you are required to post Ohio’s 2019 minimum wage and overtime information in a space that is easily visible to your employees. A copy of the Ohio Department of Commerce minimum wage poster is available here.

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