If your organization has one or more employees in Ohio, you should know that Ohio is one of 18 states raising minimum wages in 2018. On January 1, 2018, Ohio’s minimum hourly wage was increased to $8.30 for most employees. Pursuant to a 2006 amendment to the Ohio Constitution, that rate is subject to adjustment each year based on the Consumer Price Index (CPI) for urban wage earners and clerical workers. A CPI increase of 1.9 percent for the year ending August 31, 2017 accounted for this year’s 15 cent minimum wage increase. This increase is 10 cents more than last year’s increase.
In 2018, Ohio tipped employees must be paid $4.15 per hour, plus tips, which is a slight increase from 2017’s rate of $4.08. For Ohio employees working for employers with less than $305,000.00 in gross annual revenues, and for 14- and 15-year old employees, the minimum hourly wage is set at the federal minimum wage, which is currently $7.25.
Ohio employers, and others subject to a state or local minimum wage law, are required to pay the greater of those rates. Employers should also be mindful that non-exempt employees (which includes but is not limited to most hourly-paid employees) must be paid at one and one-half of their regular rate of pay for all hours worked over 40 per week.
This time of year especially it is also important to note that many bonus payments and other monetary incentives must be considered when calculating an employee’s regular rate of pay for overtime purposes.
For additional information regarding Ohio’s minimum wage law, or assistance with wage/hour compliance in general, please feel free to contact Tom Green, Katie Basch, or any other KWW attorney.