Ohio’s minimum wage generally changes each year and luckily for employees, it tends to increase. 2022 is no exception. Ohio’s minimum wage increased from $8.80 in 2021 to $9.30 in 2022. This represents an increase in the minimum wage of $0.50 per hour. While the minimum wage is still lower than many other states, a $0.50 increase is a nice benefit to Ohio workers. In this blog, we will discuss several aspects of the minimum wage.
Ohio employers must pay their employees a minimum wage of no less than $9.30 for 2022. While Ohio employers were only required to pay $8.80 for work performed in 2021, the minimum wage increase means that employees are entitled to at least $9.30 per hour. The minimum wage is simply that. It is the absolute minimum hourly wage that an employer may lawfully pay an employee. Many employers pay well in excess of the minimum wage. If an hourly employee were to only receive the minimum wage and work exactly 40 hours each week, the annual compensation would be $19,344. Pay that is so modest makes affording various necessities difficult. This is why many employers elect to pay more than the minimum wage to attract and keep their workforce.
Not necessarily. Ohio’s minimum wage of $9.30 has to be paid by all employers who gross at least $342,000. In the event that an employer does not gross $342,000, they still must pay employees a minimum wage, but they are permitted to pay employees only the federal minimum wage, which is still merely $7.25 per hour. In addition, employees who are under the age of 16 may be paid at the lower federal minimum wage rate. Thus, the vast majority of employers are required to pay Ohio’s minimum wage of $9.30 or more.
The minimum wage laws allow employers to pay tipped employees less than the full minimum wage. A tipped employee is someone who customarily and regularly receives more than $30 per month in tips. For tipped employees, the tipped minimum wage is $4.65 per hour. Ohio’s tipped minimum wage is generally exactly 1/2 of the full minimum wage. On recent deviation from this occurred in 2019 when the tipped minimum wage was $4.30 and the full minimum wage was $8.55.
In any event, tipped employees must now be paid a minimum wage of $4.65 plus their tips. Employers who pay the tipped minimum wage instead of the full minimum wage must keep records that demonstrate that the tipped employees receive at least the full minimum wage when direct or cash wages plus their hourly wage are combined. To the extent that tipped employees’ hourly wage plus tips do not meet or exceed the full minimum wage, employers must pay the difference to ensure that employees receive the full minimum wage.
Employers are also permitted to pay tipped employees the full minimum wage rather than the lower tipped minimum wage. However, to the extent that they elect not to pay the full minimum wage, they need to ensure that employees are receiving the full minimum wage. There are also other tip credit requirements that an employer must follow if it is going to pay the tipped minimum wage rather than the full minimum wage.
Our experienced unpaid wages lawyers are here to answer any questions you have about the minimum wage laws. The minimum wage in Ohio often changes from year to year. If you have any questions about whether you are being paid properly in accordance with federal and Ohio wage and hour laws, feel free to contact our experienced unpaid wage attorneys. We offer free consultations and are willing to take a comprehensive review of your compensation to ensure that you are getting paid all of the wages you have earned.