Ohio is one of nineteen states that will be implementing increases in their minimum wage rates on January 1, 2020. Many of these states automatically adjust minimum wage rates each year based on the percentage increase in Consumer Price Index (CPI) from the previous year. Thanks to a 2006 voter-approved constitutional amendment (II-34a), Ohio is one of these states.
2020 Ohio Minimum Wage Adjustment
This year, the federal government announced a 1.7% increase in the CPI from last year. The rate of inflation is good news for Ohio’s low wage workers. On January 1, Ohio’s minimum wage rate for non-tipped employees will go from $8.55 to $8.70 per hour. (Ohio requires the CPI adjustment to be rounded to the nearest five cents.) Tipped employees may be paid half the regular minimum wage rate so next year their basic wage rate will go from $4.30 to $4.35 per hour. Tipped employees must earn sufficient tips and cash wages to equal the regular minimum wage rate. If the employee falls short, the employer must make up the difference.
Covered Employers and Exclusions
Ohio’s minimum wage law applies to both public and private employers, with some exceptions. Employees of Ohio businesses with gross receipts of less than $319,000 in 2019 and employees under the age of 16 must be paid no less than the federal minimum wage rate, which is currently $7.25 per hour. The law also excludes from the minimum wage requirement family members of a family owned business, workers under the age of 16, workers employed on a casual basis, volunteers, and employers licensed to pay subminimum wages to employees with disabilities.
Recordkeeping and Posting
Employers have recordkeeping and posting responsibilities, as follows:
- Employers are required to keep for a period of three years a record of the name, address, and occupation of each employee, the rate of pay and the amount paid to each employee each pay period, and the hours worked each day and each work week by every employee. (ORC § 4111.08).
- Employers are required to post the annual Ohio Minimum Wage Poster in a conspicuous and accessible place on the employer’s premises where it can be seen by employees. (ORC § 4111.09).
- An employer who violates the recordkeeping or posting requirements is guilty of a misdemeanor of the fourth degree. (ORC § 4111.13; § 4111.99). In Ohio, misdemeanors of the fourth degree are punishable by a maximum jail sentence of 30 days and a fine not to exceed $250.
Ohio All-On-One Poster Update
Ohio employers should ensure that they have the 2020 Ohio Minimum Wage notice properly posted to avoid a possible fine or jail term. Employers who already have our Ohio All-On-One Labor Law Poster™ can quickly and affordably update existing posters using our 2020 Ohio Minimum Wage Peel ‘N Post™ sticker. New businesses and employers who want a fresh start, on the other hand, can purchase a completely new 2020 Ohio All-On-One Labor Law Poster. Get set for the new year – order your update sticker or full poster today!