Ohio’s minimum wage is scheduled to increase on Jan. 1, 2021 to $8.80 per hour for non-tipped employees and $4.40 per hour for tipped employees. The minimum wage will apply to employees of businesses with annual gross receipts of more than $323,000 per year.
The current 2020 Ohio minimum wage is $8.70 per hour for non-tipped employees and $4.35 for tipped employees. The 2020 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $319,000 per year.
The Constitutional Amendment (II-34a) passed by Ohio voters in November 2006 states Ohio’s minimum wage shall increase on Jan. 1 of 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 for the 12-month period prior to September. This CPI-W index increased by 1.4 percent over the 12-month period from Sept. 1, 2019, to Aug. 31, 2020. The Constitutional Amendment is available online.
For employees at smaller companies with annual gross receipts of $250,000 or less per year after Jan. 1, 2021, and for 14 and 15 year olds, the state 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 2021 Minimum Wage poster for display in their places of business by visiting the Ohio Department of Commerce’s website here.
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