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Ohio Minimum Wage Increase to $8.55 Becomes Effective January 1, 2019

Ohio’s minimum wage is scheduled to increase on January 1, 2019, to $8.55 per hour for non-tipped employees and $4.30 per hour for tipped employees. The minimum wage will apply to employees of businesses with annual gross receipts of $314,000 or more per year.

The current 2018 Ohio minimum wage is $8.30 per hour for non-tipped employees and $4.15 for tipped employees. The 2017 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $305,000 per year.

The Constitutional Amendment (II-34a) passed by Ohio voters in November 2006 states that Ohio’s minimum wage shall increase on January 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 2.9 percent over the twelve-month period from September 1, 2017, to August 31, 2018.

Ohio’s minimum wage for employees does not apply to employees under the age of 16 or with employees at smaller companies with annual gross receipts of less than $314,000 per year.  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.

The Ohio Department of Commerce has released the 2019 Minimum Wage Poster, which can be found HERE.  Alternatively, contact OADA Services at 614-923-2238 to request a 2019 Minimum Wage Insert.  Please post this revised minimum wage notice by January 1, 2019 for the benefit of your employees.

REMINDER. While some dealership employees may be exempt from overtime, they are not exempt from minimum wage requirements.

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