Ohio’s minimum wage will rise to $7.30 per hour, effective January 1, 2009.

In 2006, Ohioans approved a new Amendment to Ohio’s Constitution that both raised Ohio’s minimum wage and provided for an automatic increase every January 1st by the rate of inflation based on the consumer price index. On January 1, 2008, Ohio’s minimum wage rose to $7.00 per hour (for those employers whose annual gross receipts in 2007 exceeded $255,000).

The Ohio Department of Commerce recently announced the following increase to Ohio’s minimum wage effective January 1, 2009:

  • General rule: Employers whose annual gross receipts in 2008 exceeded $267,000 will have to pay a minimum wage of $7.30 per hour.
  • Tipped employees: As before, tipped employees may be paid half the minimum wage ($3.65 per hour effective January 1, 2009), if their wage plus tips equals at least $7.30 per hour.

Employers whose 2008 annual gross receipts did not exceed $267,000 do not have to pay the Ohio minimum wage; however, they must still pay the federal minimum wage. Currently, the federal minimum wage is $6.55 per hour, but it will increase to $7.25 per hour effective July 24, 2009. Employees under the age of 16 are also exempt from the Ohio minimum wage, but they too must still be paid the federal minimum wage.