Ohio Minimum Wage to Stay the Same in 2016
On September 30, 2015, the Ohio Department of Commerce announced that based upon the Ohio Constitutional provisions regarding minimum wage, the 2016 minimum wage will remain unchanged at $8.10 per hour for non-tipped employees and $4.05 per hour for tipped employees. Of course, tipped employees must receive enough in tips to make up the difference between $4.05 and $8.10 in order for an employer to apply a tip credit. While that may sound like good news for employers, particularly those in the food service industry where many employees receive a large portion of their total earnings in tips, what might not be as good news is that the Consumer Price Index for urban wage earners and clerical workers for the 12 month period ending August 31, 2015 showed a deflationary decrease of 0.3%.
The Ohio Minimum Wage applies to all employers in Ohio with annual gross receipts in excess of $297,000. The Ohio minimum wage does not apply to 14 and 15 year old employees or small employers with annual gross receipts below the threshold. Such employers are covered, however, by a state minimum wage that is the equivalent of the federal minimum wage, which is $7.25 per hour.
Many employers in Ohio already pay more than $8.10 per hour for entry level employees due to competitive demands. However, please contact any one of our attorneys if you need assistance in dealing with tipped employees who receive tip credit and some of the challenges calculating and recording overtime and reporting earnings.
For more information, please contact Paul Bittner or any member of Ice Miller's Labor, Employment and Immigration Group.
This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.