Ohio’s Minimum Wage Increases in 2017

Last week, the Ohio Department of Commerce announced that the state’s minimum wage is scheduled to increase on January 1, 2017. For non-tipped workers, the minimum hourly rate will rise from $8.10 to $8.15; for tipped workers, base wage before tips will rise from $4.05 per hour to $4.08 per hour. The new minimum wage will apply to employees of businesses with annual gross receipts (the total amount received by a business during the accounting year, without subtracting costs) of more than $299,000. Businesses with annual gross receipts below that threshold are subject to the federal minimum wage of $7.25 per hour.

Like Washington, Montana and New Jersey, Ohio’s minimum wage is tied to the Consumer Price Index (CPI), which measures the average change in prices on a “representative basket of goods and services” purchased by urban consumers. Specifically, Ohio’s Constitutional Amendment (II-34a) ties the state’s minimum wage to the CPI-W, which measures the change in prices on goods and services purchased by urban wage earners and clerical workers while excluding the salaried, the unemployed, and the retired. The CPI-W increased by 0.7 percent during the twelve-month period between September 1, 2015 and August 31, 2015.

Compliance Poster company will be updating our All-On-One™ poster for Ohio soon, as well as creating a 2017 Ohio Minimum Wage Peel ‘N Post™. You can pre-order your Peel ‘N Post™ here.

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