Ohio Minimum wage 2024
Beginning January 1, 2024, Ohio’s minimum wage is $10.45 for employers who earn $385,000 or more per year in gross receipts. Employers who earn less than $385,000 in annual gross receipts need only pay employees the minimum wage set forth in the Fair Labor Standards Act, which is currently $7.25. Ohio Minimum Wage Poster 2024
Ohio’s constitution requires an annual review of its minimum wage. The minimum wage must be increased by the percentage the cost of living has changed from the prior September to the September in the year the review is conducted.
The cost of living change is based on the consumer price index or its successor index for all urban wage earners and clerical workers for all items as calculated by the federal government rounded to the nearest five cents. Any change to the minimum wage takes effect on January 1 of the following year. Ohio Constitution Art. II, Section 34a The amount of gross annual receipts necessary for the gross receipts exception increases each year based on the consumer price index as set forth above for Ohio’s minimum wage. Ohio Constitution Art. II, Section 34a
Tip minimum wage
Ohio’s current minimum wage for tipped employees is $5.25. Ohio Minimum Wage Poster 2024
The tipped minimum wage is 50% less than the standard minimum wage; thus, like the standard minimum wage, it changes each year. To pay the tipped minimum wage, an employer must be able to show that the tipped employees are being paid the standard minimum wage when tipped wages earned are combined with tips received. Ohio Constitution Art. II, Section 34a
Tip pooling and sharing
Ohio minimum wage laws do not address tip or gratuity pooling or sharing. Ohio may look for guidance from the regulations regarding tip and gratuity pooling set forth under the federal Fair Labor Standards Act. Ohio Constitution Art. II, Section 34a; Ohio Code 4111.14(B)
Subminimum wage
Employees with disabilities
Ohio law allows employers to pay employees with disabilities a wage rate that is lower than the standard minimum wage. An employer must have a special license to pay disabled employees the subminimum wage. The special license may be obtained from Ohio’s Department of Commerce. The Department of Commerce may issue any of the following licenses:
- work activity center program license;
- sheltered workshop program license;
- temporary individual license for on-the-job training;
- individual license in regular business or industry;
- individual license in a community rehabilitation program (if less than the licensed program rate).
Ohio Constitution Art. II, Section 34a; OH Statute 4111.06; Ohio Admin. Code 4101:9-1
Trainees
Ohio minimum wage laws do not allow employers to pay trainees a wage lower than the standard minimum wage.
Apprentices
Ohio minimum wage laws do not allow employers to pay apprentices a subminimum wage rate that is less than the standard minimum wage. Ohio’s minimum wage law contains a section permitting the Department of Commerce to adopt rules that allow employers to pay apprentices at a wage rate not less than 85% of the standard minimum wage. Ohio Code 4111.07. Ohio’s Department of Commerce has not yet issued the regulations implementing the apprentice subminimum wage.
Learners
Ohio minimum wage laws do not allow employers to pay learners a subminimum wage rate that is less than the standard minimum wage.
Student learners
Ohio minimum wage laws do not allow employers to pay student learners a subminimum wage rate that is less than the standard minimum wage.
Student workers
Ohio minimum wage laws do not allow employers to pay student workers a subminimum wage rate that is less than the standard minimum wage.
