The State of Ohio has increased the minimum wage for non-tipped workers to $10.10 for 2023. This is an increase of $0.80 per hour from the 2022 minimum wage of $9.30
If you have any questions about your right to be paid minimum wage or overtime, contact our experienced Ohio employment lawyers. Although the current federal minimum wage is still merely $7.25 per hour, Ohio’s increased minimum wage of $10.10 will help employees to ensure that they are earning at least $10.10 per hour – if they are not tipped employees. The higher Ohio minimum wage applies to employees of employers who gross $372,000 or more. If an employer grosses less than $372,000, the employer is only required to pay the federal minimum wage of $7.25 per hour.
Tipped employees must receive a minimum wage of at least $5.05 per hour plus tips. Tipped employees are those employees who customarily and regularly receive more than $30 per month in tips. Although employers are permitted to pay tipped employees at the lower tipped minimum wage, employers must still ensure that when a tipped employees’ hourly wage and cash tips are at least equal to the full minimum wage of $10.10. If the hourly wage plus tips do not meet or exceed the full minimum wage, the employer must make up the difference. For example, if a bartender earns $5.05 per hour and works 40 hours, they must earn at least $404 in hourly wages plus tips. If, however, the bartender only earns $100 in tips plus the tipped hourly wage of $202 (40 * $5.05), then the employer would be responsible for paying an additional $102 so that the employee would at least earn minimum wage.
The increased Ohio minimum wage also means that the minimum overtime rate for Ohio employees will be $15.15. Overtime pay covers all hours worked over 40 in a workweek. If an employee is paid the minimum wage of $10.10, then their overtime rate will need to be $15.15 (assuming that they do not receive other pay such as bonuses or other compensation). Overtime wages must be paid whenever an employee (who is not exempt from receiving overtime) worked more than 40 hours in a workweek. Overtime is required to be paid at 1.5 times employees’ regular rate of pay which is not always the same as their base hourly rate. Employees who receive certain types of compensation in addition to their base hourly pay must be paid at a higher rate than just 1.5 times their base hourly pay. For example, if an employee is paid $12 per hour and works 45 hours in a workweek but they also receive a $100 attendance bonus, their regular rate of pay is $14.22 and not $12. Determining regular rates of pay and overtime can be difficult, so we would encourage you to contact an experienced wage and hour attorney at our office if you have any questions about your pay.
Ohio’s increase in the minimum wage is a welcomed sign for employees who are facing higher costs of living. Even taking into consideration the higher minimum wage, the annual compensation for an employee who earns the minimum wage and works 40 hours all 52 workweeks in the year is only $21,008. Our employment attorneys understand that you work hard for your money and we want to ensure that you are being paid in accordance with the minimum requirements of federal and Ohio wage and hour laws. Contact our Ohio minimum wage lawyers if you have any questions about your wages or overtime. Our Ohio minimum wage attorneys will provide guidance about whether you are being paid properly in accordance with wage and hour laws.