Ohio’s Minimum Wage To Increase
The state’s minimum wage will increase to $7.95 per hour for non-tipped employees and to $3.98 per hour for tipped employees, plus tips, effective January 1, 2014. The increased minimum wage will apply to employees of businesses with annual gross receipts of more than $292,000.
The current 2013 Ohio minimum wage is $7.85 per hour for non-tipped employees and $3.93 for tipped employees, plus tips. The 2013 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $288,000.
What determines the annual changes? The state minimum wage is tied to the Consumer Price Index (CPI) for urban wage earners and clerical workers for the 12-month period prior to September. This CPI index rose 1.5 percent over the 12-month period from September 1, 2012, to August 31, 2013. The wage rate for non-tipped employees is rounded to the nearest five cents.
For employees at smaller companies (with annual gross receipts of $288,000 or less per year in 2013 or $292,000 or less per year after January 1, 2014) 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.