Ohio is starting 2014 with an increase to its minimum wage. On January 1, 2014, Ohio raised its minimum wage ten cents, from $7.85 to $7.95 per hour. Tipped employees hourly minimum wage increased five cents, from $3.93 to $3.98.
The increase does not affect businesses who gross less than $292,000.00 per year. These “smaller businesses” are still governed by the federal minimum wage, however, which remains $7.25 per hour.
Ohio’s minimum wage increases every year and is tied to increases in the Consumer Price Index, pursuant to a 2006 amendment to Ohio’s Constitution.
Ohio’s minimum wage increase provides an opportunity for employers to review their compliance with Ohio’s minimum wage and overtime law, which is a corollary to the Fair Labor Standards Act’s overtime provisions, and expressly incorporates these provisions by reference. The relatively small amount of effort it may take for an employer to audit its compliance could end up sparing the employer costly litigation.