Starting next year, Ohio employers will have to pay a new minimum wage of $11.40 an hour, and $5.70 for tip-earning workers. The 3.5% increase set for January 1, 2027 is based on the Consumer Price Index for urban wage earners and clerical workers. However, keep in mind that the state rate applies only to employers with annual gross receipts of more than $420,000 (up from $405,000 in 2026). Are you prepared for the increase next year? Here are three questions to answer now.
1. Which Side of the Line Are You On?
Ohio’s minimum wage for 2027 applies to employers with annual gross receipts of more than $420,000 for the preceding calendar year. So, an employer with receipts close to that number should carefully determine which side it falls on for 2027. Employers at or below that threshold, and employees under 16, fall under the federal minimum wage of $7.25 instead of Ohio’s new $11.40 rate.
2. Which Pay Rates Change on January 1?
Tip-earning workers will also see their minimum rate rise to $5.70 in the new year, which is half of the new standard minimum rate. Under state law, an employer may pay a tipped employee less than the minimum wage, but not less than half, if the employee receives tips that, when combined with the wages paid by the employer, are equal to or greater than the minimum wage rate for all hours worked.
Before next year, identify every position paid below $11.40 an hour, or a cash wage below $5.70 for tipped employees. Confirm that your payroll will be...
Read Full Story:
https://news.google.com/rss/articles/CBMihwFBVV95cUxNU1JOX3JaeDhra2FOX2VmOE5w...