As of January 1, 2019, the minimum wage for non-tipped employees in Ohio who do not qualify for one of the white collar exemptions will rise 25 cents from $8.30 to $8.55 per hour, one of the largest increases since Ohio’s minimum wage was indexed to the Consumer Price Index (CPI-W). The minimum wage for tipped employees will rise 15 cents from $4.15 to $4.30 an hour. These wage increases apply to employers with annual gross receipts of $314,000 or more per year. Those employers with annual gross receipts less than $314,000 per year, but who are otherwise subject to the Fair Labor Standards Act, must only pay the federal minimum wage of $7.25 per hour. Also, employees who are 14 and 15 years old must only be paid the federal minimum wage.
This increase is attributable to an Ohio Constitutional Amendment (II-34a) passed by voters in November 2006 which requires Ohio’s minimum wage to increase annually to reflect the rate of inflation. The applicable rate of inflation is derived from the CPI-W for urban wage earners and clerical workers for the 12-month period from September 1, 2017, to August 31, 2018.
Ohio employers and others subject to a state or local minimum wage law should be aware that they are required to pay the greater of the state, local or federal minimum wage rates. Employers should also be mindful that, with few exceptions, 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 in each work week.
Around this time of year (i.e. the holidays) it is also important to note that many bonus payments and other monetary incentives must be considered when calculating a non-exempt employee’s regular rate of pay for overtime purposes.
Employers are required to post the minimum wage and overtime information in a conspicuous place, such as a break room, or other common space that can be accessed by employees. A free downloadable copy of the poster is available here.
For additional information regarding Ohio’s minimum wage law, or assistance with wage/hour compliance in general, please feel free to contact Katie Basch, Travis Teare, or any other KWW attorney.