Ohio Minimum Wage Set to Rise in 2024

Increase in Minimum Wage for Ohio Workers

OHIO, USA – Ohio workers can look forward to a boost in their minimum wage starting from January 1, 2024. The Ohio Department of Commerce has announced an increase in the minimum wage for non-tipped employees, providing essential financial relief to many.

New Minimum Wage Rates

Effective from the first day of 2024, the minimum wage for non-tipped employees in Ohio will rise from the current $10.10 per hour to $10.45 per hour. This upward adjustment is a welcome development for workers striving to make ends meet.

Tipped employees, who often rely on customer gratuities, will also see an increase in their minimum wage. It will elevate from $5.05 per hour to $5.25 per hour, offering better compensation for their valuable services.

Applicability Based on Business Size

The revised minimum wage rates will be applicable to employees working for businesses with annual gross receipts exceeding $385,000. For these employees, the increase signifies a positive step towards improved financial stability.

However, for those working in smaller companies with annual gross receipts of $385,000 or less, as well as 14 and 15-year-olds entering the workforce, the state’s minimum wage will remain at $7.25 per hour. This rate is intrinsically tied to the federal minimum wage and necessitates congressional and presidential action for any future adjustments.

Constitutional Amendment and Inflation-Based Increase

The minimum wage hike is in alignment with a Constitutional Amendment passed by Ohio voters in November 2006. This amendment stipulates that Ohio’s minimum wage will increase each year on January 1, based on the rate of inflation.

The state’s minimum wage is closely linked to the Consumer Price Index (CPI) for urban wage earners and clerical workers over a 12-month period. The most recent data reveals a 3.7% increase in the index from September 1, 2022, to August 31, 2023. This inflation-driven adjustment aims to ensure that Ohio’s workers can keep pace with the rising cost of living, offering them a fair and sustainable income.