OH minimum wage set to increase in January - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

OH minimum wage set to increase in January

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(Toledo News Now) -

Ohio's minimum wage is scheduled to increase on Jan. 1 to $7.95 per hour for non-tipped 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 will increase on Jan. 1 of each year by the rate of inflation. The state minimum wage is tied to the Consumer Price Index for urban wage earners and clerical workers for the 12-month period prior to September. 

This CPI index rose 1.5 percent over the 12-month period from Sept. 1, 2012 to Aug. 31, 2013. The amendment also states that the wage rate for non-tipped employees will be rounded to the nearest 5 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 Jan. 1, 2014, along with 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 of $7.25 per hour, which requires an act of Congress and the president's signature to change.

Copyright 2013 Toledo News Now. All rights reserved.

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