On January 1, 2020, the minimum wage in the state of Ohio for non-tipped employees rose 15 cents to $8.70 per hour. This calculates to $348 for a 40-hour workweek and a yearly income of $18,096. Tipped employees saw their minimum wage increase by 5 cents to $4.35 per hour. A tipped employee is defined as someone who engages in an occupation in which he or she receives more than $30 per month in tips. Employees can receive tips up to $30 per month without being legally considered a tipped employee.
Ohio Minimum Wage Automatically Adjusts Every Year
These increases were set in motion by an amendment to the state constitution in 2006, which mandated that the state’s minimum wage be based on the inflation rate of the previous year. Ohio is one of seven states where these automatic inflation adjustments to the minimum wage occur on an annual basis. Before this legislation, the minimum wage was rarely changed, often going a decade or more at the same level. Since 2006, the minimum wage in Ohio has increased almost every year, with the only exceptions being 2010 and 2016.
Employers who gross $150,000 per year or more are required to pay an employee one and a half times an employee’s rate of pay for any hours in excess of 40 hours per week of work. This calculates out to a $13.05 per hour overtime wage. Ohio law does not define a daily limit for overtime.
Ohio Exemptions from Minimum Wage
There are quite a few conditions that could exempt a person from qualifying for Ohio’s minimum wage. Some of these include:
• Some workers in Ohio continue to earn the Federal minimum wage. For companies whose gross receipts did not exceed $319,000 in 2019, the minimum wage stays at $7.25. The same rate applies to workers who are under the age of 16.
• Individuals employed by the United States government.
• Persons employed as babysitters in an employer’s home
• Live-in companions to a sick, convalescent or elderly person—unless their principal duties include housekeeping
• Family members of the owner who are working in a company that is completely family-owned and operated.
• Workers employed by camps or recreational areas for children under the age of 18 which are owned and operated by a non-profit organization or group.
• Outside salesmen, or salesmen who go out into the field and meet clients for sales purposes, who are compensated by commission or in their executive, administrative, or professional capacity.
• In order to prevent the pricing of those with physical and mental deficiencies, the state of Ohio allows a sub-minimum wage rate to be paid according to strict guidelines set out by the Director of the Ohio Department of Commerce. In order to pay workers this special wage, an employer must have a certificate from the Ohio Department of Commerce.
The minimum wage in Ohio is mandated by law to reflect the Consumer Price Index of the previous year. This is designed to keep the wages of Ohio’s lowest-paid workers in line with the cost of living.