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As of January 1, 2014, non-tipped minimum wage employees in Ohio will receive a 10-cent increase, bringing their wages to $7.95 an hour. www.com.ohio.gov/documents/dico_2014Minimumwageposter.pdf

 

For employees who receive tips, the new minimum wage will increase to $3.98 an hour, an increase of 5 cents an hour.  Ohio’s minimum wage has jumped 55 cents since 2011.  The state minimum wage is adjusted annually because of an amendment to the Ohio Constitution approved by voters in 2006 and its increases are linked to the Consumer Price Index.

 

In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.  The federal minimum wage is $7.25 per hour, which is 70 cents lower than Ohio’s new minimum wage.  Accordingly, Ohio employers will need to comply with the state minimum wage.

 

Beginning January 1, there also will be a change concerning which businesses must pay the state minimum wage. The increased minimum wage will now apply to employees of businesses with annual gross receipts of more than $292,000 per year, up from the prior threshold amount of $288,000 per year.

 

Companies with gross receipts of less than $292,000 must pay the federal minimum wage. The federal minimum requires an act of Congress and the president’s signature to change- both of which may be possibilities in 2014 due to increased focus on the minimum wage as political campaign fodder coupled with President Obama’s vocal support of an increased federal minimum wage.  In fact, in his December 4, 2013 speech about income disparity, President Obama urged Congress to raise wages (specifically, the federal minimum wage), alluding to a Democratic bill by Sen. Tom Harkin of Iowa that would raise the federal minimum wage to $10.10 an hour in three steps and tie automatic annual increases to changes in the cost of living  per hour. http://abcnews.go.com/Politics/wireStory/obama-speech-focus-income-disparities-21090929


For information on other states’ minimum wage rates, go online to www.dol.gov/whd/minwage/america.htm

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