Tag: ohio minimum wage

  • Ohio Minimum Wage Set to Increase in 2025

    Ohio Minimum Wage Set to Increase in 2025

    Columbus, Ohio – Ohio’s minimum wage is scheduled to increase Jan. 1, 2025, to $10.70 per hour for non-tipped employees and $5.35 per hour for tipped employees. The minimum wage will apply to employees of businesses with annual gross receipts of more than $394,000 per year.

    The current 2024 minimum wage is $10.45 per hour for non-tipped employees and $5.25 per hour for tipped employees. The 2024 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $385,000.

    The Constitutional Amendment (II-34a) passed by Ohio voters in November 2006 states Ohio’s minimum wage shall increase on January 1 each year by the rate of inflation. The state minimum wage is tied to the Consumer Price Index (CPI-W) for urban wage earners and clerical workers over the 12-month period prior to September. The CPI-W index increased by 2.4 % over the 12-month period from Sept. 1, 2023, to Aug. 31, 2024.

    For employees at smaller companies with annual gross receipts of $394,000 or less per year after Jan. 1, 2025, and for 14- and 15-year-olds, the state’s 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.

    Employers can access the 2025 Minimum Wage poster for display in their places of business by visiting the Ohio Department of Commerce’s Division of Industrial Compliance’s Bureau of Wage and Hour website.

    The Division of Industrial Compliance is part of the Ohio Department of Commerce. The department is Ohio’s chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.

  • Ohio bill to raise minimum wage to $15, eliminate tipped worker distinction has sponsor testimony

    Ohio bill to raise minimum wage to $15, eliminate tipped worker distinction has sponsor testimony

    Democratic Ohio Sens. Kent Smith and Hearcel Craig introduce measure to gradually increase state’s minimum wage in $1 increments

    BY:  Ohio Capital Journal

    A bill that would raise Ohio’s minimum wage was rolled out for the first time to the Senate Workforce and Higher Education Committee Wednesday afternoon during sponsor testimony.

    Ohio Sens. Kent Smith, D-Euclid, and Hearcel Craig, D-Columbus, introduced Senate Bill 146, which would gradually increase the state’s minimum wage $1 each year until it was up to $15. Under the bill, minimum wage would increase to $12 an hour starting in 2024; $13 starting in 2025; $14 starting 2026; and $15 in 2027.

    “From that point forward, the minimum wage would annually adjust based upon the inflation rate,” Smith said in his testimony.

    With only Democratic co-sponsors in the Republican supermajority chamber and Statehouse, prospects for the bill are slim. Ohio’s current minimum wage is $10.10 per hour for non-tipped workers and tipped employees earn half the state’s minimum wage, plus tips. This bill would eliminate the tipped worker distinction, automatically increasing their pay to minimum wage.

    Eight states have nixed the tipped minimum wage, Smith said.

    “Ending the tipped working penalty and creating an economy where workers do not have to work 76 hours a week to cover basic expenses is good for Ohio families,” he said in his testimony.

    An Ohioan without children must earn $15.33 an hour to have a living wage in Ohio, according to the MIT Living Wage Calculator.

    For housing, full-time workers need to make at least $19.09 an hour to afford a 2-bedroom apartment in Ohio — a $2.04 increase from last year, according to a joint report from the Coalition on Homelessness and Housing in Ohio (COHHIO) and the National Low Income Housing Coalition (NLIHC).

    “An artificially low minimum wage has kept too many Ohioans trapped in a cycle of poverty: taking on another minimum wage job, unable to move up, while losing buying power,” Craig said in his testimony. “Raising the minimum wage to $15 by 2027 would give over a million Ohioans a raise that is long overdue while allowing people to lift themselves out of poverty.”

    Tipped workers

    Committee Chair Sen. Jerry Cirino, R-Kirtland, questioned the need to get rid of the tipped worker distinction.

    “We all know that the reason we have that difference is because they are getting tips, presumably if their service is good and people are feeling generous,” he said.

    He explained how his grandchildren who work in restaurants while going to college earn good tips.

    “It has to do with service levels and performance,” Cirino said. “If you are a good wait server, you are going to get good tips.”

    Smith responded by saying that while tipped workers are disproportionately young, one in four are over the age of 40.

    “Tipped workers are nearly twice as likely to live in poverty as non-tipped workers,” he said.

    Benefits cliff

    Cirino and Sen. Michael Rulli, R-Salem, questioned if raising the minimum wage would cause a benefits cliff, meaning a decrease in public benefits that can happen with a small increase in earnings.

    Rulli told a brief story about how he had used to have an assistant deli manager who was a single mom with three kids at home who was a hard worker, so he rewarded her with raises. Eventually, she resigned.

    “She started making so much money with me that the state took all her benefits away and she was behind the eight ball,” he said.

    Craig said he would look into that issue.

    “We’ve got to work on that,” he said.


    Follow OCJ Reporter Megan Henry on Twitter.

    Megan Henry
    MEGAN HENRY

    Megan Henry is a reporter for the Ohio Capital Journal and has spent the past five years reporting in Ohio on various topics including education, healthcare, business and crime. She previously worked at The Columbus Dispatch, part of the USA Today Network.

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  • Minimum wage increase brought to Ohio House committee

    Minimum wage increase brought to Ohio House committee

    BY: SUSAN TEBBEN – Ohio Capital Journal

    A new push for a $15 minimum wage was introduced in the Ohio House, attempting to speed up the progress of a constitutional amendment passed nearly two decades ago.

    Democratic state Reps. Dontavius Jarrells and Brigid Kelly said their new bill not only addresses criticisms of quick implementation of a minimum wage increase, but also make a difference for struggling Ohioans.

    “We heard concerns of colleagues and made a longer runway for the increases,” Kelly told the House committee on Commerce and Labor. “But the longer we wait to act, the less impactful this action will be.”

    House Bill 69 would phase in those increases to reach $15 per hour by 2027.

    Since the bill never received a hearing after it was initially filed in February of 2021, an amendment would be needed to change the language, which set the first increase to happen on Jan. 1, 2022.

    The sponsors pointed to a constitutional amendment passed in 2006 that raised minimum wage in Ohio yearly with the rate of inflation. With inflation at the highest level since the Reagan administration, the minimum wage starting January 2023 will be $10.10 per hour, and $5.05 for tipped employees.

    “The bottom line is this: When people have more money in their pockets, they spend it and they spend it in businesses and communities all across Ohio,” Kelly said.

    Jarrells said he receives calls to his office often talking about hard decisions families in Ohio are making, like putting food on the table in lieu of needed medications, because affording both isn’t an option.

    “When we think about the impact of just not thinking critically about how do we make sure salary or wages match our productivity, there are families who simply are going without,” Jarrells said.

    Debate in the committee centered around whether adding more money would solve problems, namely bringing people back to the workforce.

    State Rep. Don Jones, R-Freeport, argued that some businesses are offering more than $15 per hour, or at least increasing pay, and still aren’t able to bring more employees in. He said the issue was the workforce, not the wage.

    “We can sit here and raise the minimum wage to $15 an hour, and people are going to want $20,” Jones said.

    He used the example of a McDonald’s offering $13 an hour, though he didn’t specify whether the job was full-time or part-time.

    Kelly said though food serve and retail workers are among those struggling to pay bills because of low wages or low hours, the problem extends to other categories of workers, like home health services. She and Jarrells agreed that while they see wage as a fixable issue on its own, there’s no reason not to work on both wage and workforce.

    “We can think about what we would like aspirationally to be true, or we can think about what people are experiencing right now, which a lot of time is multiple part-time jobs, no benefits, challenges with transportation, challenges with housing security, and also working with governmental agencies to get benefits that aren’t necessarily aligned with one another,” Kelly said.

    The bill is flanked by a proposed ballot initiative, which would bring the minimum wage to $15 per hour in 2028.

    But if neither the bill — which faces a Republican supermajority and a quick timeline with the General Assembly set to end Dec. 31 — nor the ballot initiative are successful, that doesn’t mean more legislative measures aren’t on the horizon. Kelly expressed confidence that Jarrells would continue the efforts in the next General Assembly.

    “We can continue to ignore it at our own peril, but Ohioans deserve better, they’ve earned and deserve a raise,” Kelly said.