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Minimum Wage: Six Facts About Ohio's Minimum Wage

By    |   Wednesday, 09 March 2016 07:55 PM

At the beginning of 2015, Ohio raised its minimum wage to $8.10 per hour, from the federally mandated minimum of $7.25 per hour.

Here are six facts about this new policy and what it means for the state’s residents.

1. The new, higher wage was based on a constitutional amendment the state passed in 2006. This law called for annual minimum wage increases based on the Consumer Price Index (CPI), which tracks the cost of living and how prices have inflated over time. This most recent increase is based on the CPI’s increase of 1.6 percent between September 2013 and August 2014, The Toledo Blade reported.

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2. Employees who earn tips are subject to a lower state minimum wage. Anyone who earns more than $30 per month in tips gets paid a minimum of $4.05 per hour, The Blade noted. This is an increase from the previous Ohio minimum for tipped employees of $3.99 per hour.

3. The minimum wage law does not apply to businesses that earn less than $297,000 annually. Also exempt from the law are babysitters, anyone younger than age 16, those who get paid commission, certain camp employees, and family members who are employed by a business owned by the family.

4. According to the nonpartisan group Policy Matters Ohio, the minimum wage increase has the potential to bring the state more than $36 million in increased consumer spending and benefits 277,000 Ohio residents who earn minimum wage.

5. Minimum wage increases are expected to have a “ripple effect” in Ohio, the Cincinnati Enquirer reported. As businesses increase wages for entry level employees, they typically also raise the wages of those in the upper tiers, such as supervisors and managers. And since 2013, the median annual income in the state has been steadily rising, in part because the country is in recovery mode after the recession.

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6. The state minimum wage may climb even higher. Based on the Consumer Price Index, experts projected that the state would raise the minimum wage to $8.30 in 2016, $8.50 in 2017, and $8.70 in 2018. Last year, Sen. Kenny Yuko, D-Richmond Heights, introduced a bill that would raise the state’s minimum wage to $10.10. As with the current law in Ohio, this amount would also be adjusted for inflation when applicable.

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At the beginning of 2015, Ohio raised its minimum wage to $8.10 per hour, from the federally mandated minimum of $7.25 per hour.
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Wednesday, 09 March 2016 07:55 PM
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