Effective January 1, 2022, Ohio’s minimum wage rate will increase to$9.30 per hour for non-exempt employees.
The state minimum wage in Ohio applies to employers that gross at least $342,000. Employers that gross less than $342,000 must pay employee wages that are at least equal to the federal rate of $7.25.
Tipped Employees
The minimum wage rate for tipped employees (also known as a cash wage) will increase to $4.65 per hour. A tipped employee includes any employee who engages in an occupation in which the employee customarily and regularly receives more than $30 per month in tips.
State law requires employers that use the tipped employee minimum wage rate to be able to show that the combination of their tipped employees’ tips and cash wage is at or above the state’s minimum wage rate.
Minimum Wage Posting Requirements
Ohio employers are also required to display the minimum wage poster. This poster must be displayed in a prominent location where it can be easily seen by employees. The poster provides an overview of the current minimum wage rate, tipped rate, overtime pay requirements and exceptions to the state’s minimum wage and overtime pay laws.
Next Steps for Employers
Ohio employers should prepare their payroll processes and procedures to comply with the new state minimum wage rates by the effective date.
