It’s critical to stay current on pay and labor rules in the ever-changing business environment to retain compliance and guarantee equitable compensation for workers. A key component of labor laws in Ohio, the minimum wage has changed recently and is yet subject to revision. So, What’s the Minimum Wage in Ohio? Will Ohio’s minimum wage increase in 2024? What other information should employers in the Buckeye State be aware of?
The comprehensive guide covers all the information you require to understand Ohio’s minimum wage, offering HR specialists and small company owners insightful information.
What Is Minimum Wage?
The term “minimum wage” refers to the least amount of compensation that a company must provide to employees for work completed within a specific timeframe, and neither an individual contract nor a collective bargaining agreement may reduce it.
The Basics of Ohio Minimum Wage
The US minimum wage system is a complicated one. This is because many states and towns have greater minimum wages in addition to the federal minimum wage. Because of this, many regions of the nation have varied minimum wage rates.
The lowest hourly rate that employers are legally allowed to pay their employees is the federal minimum wage. It is established by the federal government and applies to all national businesses. The federal minimum wage as of right now is $7.25 per hour.
Certain states have minimum pay rates that are greater than the federal minimum wage in addition to the federal minimum wage. Every business in a state is subject to the minimum wage set by the state. Thirty states had minimum wage rates greater than the federal minimum wage as of January 1, 2023. Washington, D.C. has the highest state minimum wage, at $16.11 per hour.
Businesses operating within a certain city or municipality are subject to local minimum wages. This is done in an effort to represent the distinct economic conditions of their particular areas. For instance, the minimum wage in Cincinnati, Cleveland, and Columbus—three of Ohio’s largest cities—is $15.00 per hour, which is more than the state minimum wage set by Ohio.
The fact that the minimum wage regulation has several exemptions is the last factor that affects the minimum wage. Certain job kinds or personnel categories are exempt from these requirements. Below is further information on this.
What’s the History of Minimum Wage in Ohio
The evolution of the labor market and economy during Ohio’s minimum wage history is reflected in the policies at the federal and state levels.
What you need to know about the timeframe for the Ohio minimum wage is provided here.
Early Years and the Federal Minimum Wage
The first federal minimum wage was created in 1938 by the Fair Labor Standards Act (FLSA), which also established a nationwide standard for hourly earnings. To guarantee equal compensation for workers across the country, the inaugural minimum wage of 25 cents per hour was a major step in the right direction. But after that, Ohio’s minimum wage, which had previously been in line with the federal minimum wage, stagnated for many years, unable to keep up with the state’s soaring cost of living.
A Transition to State-Level Determination
Recognizing the disparities in Ohio’s economic conditions, a growing movement in the 1960s and 1970s demanded state-level increases to the hourly wage due to the state’s rising cost of living.
Eventually, in 1971, Ohio started the process of determining her minimum wage, putting it at $1.60 an hour, which was marginally more than the $1.45 federal minimum wage at the time.
Variations and Adjustments
The Ohio minimum wage varied over the 1970s and 1980s, responding to shifts in the federal minimum wage as well as shifts in the overall state of the economy.
Voters in Ohio supported a ballot proposal in 1987 that linked the minimum wage in the state to inflation, guaranteeing automatic increases to keep up with the growing cost of living.
Current Developments and Prospects for the Future
The Ohio minimum wage has been rising steadily in recent years. The most recent rise took place in 2023 when it was raised to $10.10 per hour for non-tipped workers and $5.05 per hour for tipped workers.
Discussions on Ohio’s minimum wage’s future are still underway. Concerns regarding the effect on businesses and job creation are voiced by some who oppose more minimum wage increases, even though they are necessary to redress economic imbalances and guarantee livable pay for workers.
Nevertheless, despite the ongoing discussion, Ohio’s minimum wage has changed over time, demonstrating the state’s dedication to striking a balance between worker welfare and economic progress.
Special Cases & Exemptions
Ohio has several exemptions from the general minimum wage laws that are specific to particular job kinds or employee categories.
Among the exceptions are:
- Youths under 20
- Students
- Employees with disabilities
- Tipped employees
There are a few unique circumstances that apply to the Ohio minimum wage in addition to the exemptions mentioned above.
Among them are:
- Employees of specific recreational, seasonal businesses.
- Workers who own small businesses
- Employees at some small Newspapers
Who Enforces Ohio’s Minimum Wage Laws?
The Ohio Department of Commerce’s Bureau of Wage & Hour Administration (WHA) is in charge of enforcing the state’s minimum wage. The WHA’s responsibilities include looking into complaints of minimum wage violations, auditing businesses, and pursuing legal action against those who break the law.
The WHA uses complaint-driven investigations as a key instrument to look into possible minimum wage violations. Employee complaints, sporadic employer audits, and enforcement measures including citations, fines, and injunctive relief are all part of these investigations. Along with informing employers and workers about their legal rights, the WHA frequently works with other organizations, such as the Wage and Hour Division of the US Department of Labor.
What’s the Minimum Wage in Ohio: FAQs
What does the term “minimum wage” actually mean?
The smallest sum of money that an employer must pay employees for work completed within a specific time frame and that cannot be decreased by a collective bargaining agreement or an individual contract is known as a minimum wage.
What is the US minimum wage?
The minimum wage allowed by federal law is $7.25 per hour. This rate also applies to nonexempt covered workers. For workers who get gratuities, the minimum pay is $2.13 per hour. The total hourly wage must be at least $7.25, including the $2.13 and tips.
What is the Ohio wage for jobs?
In Ohio, the average pay is $34.47 per hour or $71,693 per year. The starting salary for entry-level positions is $39,515 annually, while the average salary for experienced workers is $128,470.
Which state offers the lowest wages?
Which state’s minimum salary is the lowest? In Wyoming and Georgia, the minimum wage is $5.15 per hour. Employers subject to the Fair Labor Standards Act (FLSA) must adhere to the federal $7.25 standard.
What’s the Minimum Wage in Ohio: Conclusion
Although, In Ohio, a fair and moral workplace depends on adherence to wage rules. Understanding Ohio’s minimum wage rates, correctly classifying workers, putting in place an accurate payroll system, communicating wage policies, keeping abreast of wage changes, keeping accurate wage records, quickly resolving employee concerns, encouraging a culture of compliance, and also getting expert advice are all important practices. HR specialists can efficiently handle payroll, guarantee compliance, safeguard employee rights, and reduce legal risks by adhering to these procedures.
