Ohio’s minimum wage is set to increase on January 1, 2020, based on the state’s annual adjustment for inflation. Every year, like clockwork, the Ohio Department of Commerce issues the updated Minimum Wage notice at the end of September, and this year is no exception. The new notice has a revision date of September 30, 2019.
As in previous years, Ohio’s new minimum wage rates require updates to three areas on the Minimum Wage notice, which we’ve outlined below.
2020 Minimum Wage Updates for Ohio
Minimum Wage for Non-Tipped Employees
Ohio’s minimum wage will increase to $8.70 per hour for non-tipped employees, effective January 1, 2020.
Employers who gross less than $319,000 (previously $314,000) should be aware that they are required to pay their employees at least the current federal minimum wage of $7.25 per hour.
In addition, employees under the age of 16 should also be paid at least the federal minimum wage.
Minimum Wage for Tipped Employees
On January 1, 2020, the minimum wage for tipped employees will increase to $4.35 per hour, plus tips. As in previous years, the Minimum Wage notice describes tipped employees as those who customarily and regularly receive more than $30.00 per month in tips.
If they elect to use the tip credit provision, employers are required to show that their tipped employees receive at least the minimum wage when the tip credit and direct or cash wages are combined.
The Director of the Ohio Department of Commerce sets forth rules and regulations related to the sub-minimum wage to provide employment opportunities and avoid undue hardship for certain individuals. Under these requirements, employers may pay a sub-minimum wage rate to individuals whose earning capacity is affected or impaired by mental or physical deficiencies or injuries.
We Make Compliance Easy!
If you order our 1-Year Compliance Plan, you will automatically receive the updated Ohio poster as soon as it becomes available. And because we provide free poster updates for mandatory changes, no matter how many occur during the plan year, you can always count on Poster Compliance Center to keep your business in compliance!