limaohio.com

Minimum wage increases in January

By Drew Stambaugh

November 12, 2013

Ohio’s minimum wage is scheduled to increase on Jan. 1, 2014 to $7.95 per hour for nontipped employees and to $3.98 per hour for tipped employees, plus tips. The increased minimum wage will apply to employees of businesses with annual gross receipts of more than $292,000 per year.


The current 2013 Ohio minimum wage is $7.85 per hour for non-tipped employees and $3.93 for tipped employees, plus tips. The 2013 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $288,000 per year.


The Constitutional Amendment passed by Ohio voters in November 2006 states that Ohio’s minimum wage shall increase on January 1 of each year by the rate of inflation. The state minimum wage is tied to the Consumer Price Index (CPI) for urban wage earners and clerical workers for the 12-month period prior to September. This CPI index rose 1.5 percent over the t12e month period from Sept. 1, 2012 to Aug. 31, 2013.


The Amendment also states that the wage rate for non-tipped employees shall be rounded to the nearest five cents.


For employees at smaller companies (with annual gross receipts of $288,000 or less per year in 2013 or $292,000 or less per year after January 1, 2014) and for 14- and 15-year-olds, the state minimum wage is $7.25 per hour. For these employees, the state wage is tied to the federal minimum wage.