What is minimum wage in Ohio? Will it increase in 2022?

Minimum wage is a hot topic in the news, but it can be hard to understand all of the details. What is minimum wage in Ohio?

The minimum wage has been controversial for years, with many people on both sides of the issue. This article will explain what you need to know about Ohio‘s minimum wage law so that you can make an informed decision.

Our goal with this blog post is to give you enough information so that you can decide how you feel about Ohio’s current minimum wage laws and whether or not they should be changed. We’ll also provide some links at the end where readers who want more information than we provide here can find out more!

What is minimum wage in Ohio?

Ohio’s minimum wage of $7.95 per hour is the same as the current federal rate, however it is anticipated that both will increase to $8.15 per hour on January 1, 2012 based on what Ohio Governor John Kasich signed into law during 2011.

The new law allows businesses with annual gross receipts of more than $292,000 to pay $7.25 per hour as the new minimum until January 1, 2014. After that, it will increase annually on January 1 by the cost of living or $0.01 above what the federal minimum wage is at that time.

Minimum wage for a tipped employee

Minimum wage for a tipped employee in Ohio is $3.98 per hour, which will remain unchanged. A tipped employee must be paid a combined cash wage and tip amount that equals to the minimum hourly wage of $7.95 if not more.

Ohio’s minimum wage applies to employees who are 18 years old or older and those who are not full-time students working as volunteers at nonprofit organizations.

The law also allows for a training wage of $4.25 per hour for those employees who are between the ages of 16 and 19 as long as they have an employment agreement to complete a certain number of work hours or days with a training entity.

Minimum wage for a student

The minimum wage for a student under the age of 20 who is employed while attending school full-time is $7.25 per hour, which will remain unchanged.

Ohio’s minimum wage law excludes counties where the existing federal or Ohio state rate is greater than $7.40 per hour, unless approved by voters. Minimum Wage Rate Table Minimum wage is $7.95 per hour Effective January 1, 2012 Minimum wage is $8.15 per hour Effective January 1, 2013 Minimum wage is $7.25 per hour.

Minimum Wage Across the U.S.

Minimum wage in the U.S. is $7.25 per hour, but it varies by state for non federal workers and may be higher than the federal minimum wage for some where it is set to exceed $9 or even $10 per hour in coming years.

The estimated numbers of employees paid hourly rates at or below the federal minimum wage in 2010 is 1,592,000.

In 2009, there were more than 3.3 million workers who earned the prevailing federal minimum wage of $7.25 per hour.

Pennsylvania Minimum Wage

In Pennsylvania, the current minimum wage of $7.15 per hour will increase to $7.25 on January 1st 2012

New York Minimum Wage

The new NY State minimum hourly rate went into effect December 31, 2011 at 8:00AM – It increased from 7.50 per hour to its current rate of 8 per hours (it will continue to be adjusted each year based on inflation).

Minimum Hourly Rate (NYC Non-Under 18 Years Old): $8.00 effective December 31, 2011; $8.75 effective December 31, 2012; $9.00 effective December 31, 2013; indexed annually (Future (refer to footnote)) $$8.75 under 18 Effective October 1, 2015* * On September 3rd 2015 Governor Cuomo signed an amendment into law that will increase the minimum wage for employees in New York City employed by a large employer (11 or more).

How to calculate your paycheck if you make more than the minimum wage?

If you are paid an hourly rate, here is how to calculate your paycheck for more than the minimum wage. If you make $8 an hour and receive a raise to $10 per hour, this is what your new hourly pay will be:

$8 (original rate) x 1 (your # of hours worked) – $8 (minimum wage) = Your New Rate of Pay

$80 (your original rate x 8 hours) + $160 (minimum wage x 2 overtime hours) = Your New Total Pay After the Hike

$240/40 hours = $6.00 per hour or

$6.00 (new rate ) x 10 (hours worked that week ) – $8.00 (old rate) = $140.00

If you are paid a salary, here is how to calculate your paycheck for more than the minimum wage. If you make $50,000 per year and receive 1% raise (which would be an increase of $500), this is what your new yearly income will be:

$50,000 (your previous salary) x 1% (increase) /12 months=Your New Monthly Income

$500 (your increase/12 months)=Your New Weekly Income

$500(your weekly income )x 4 weeks (normal work hours in a week) – $320 (minimum wage for NY state employees) = Your New Salary After The Hike

At this point, if your company does not offer a performance-based bonus, you will make the same amount of money as you did before the pay raise. However, if your company offers a 4% or 5% bonus on top of your salary for good performance, this is how it would be affected:

$60,000 (salary without bonus) x 4% (bonus %/12 months)=Your New Monthly Bonus

$240(your base salary+ monthly bonus )x 4 weeks (normal work hours in a week) – $320(minimum wage for NY state employees) = Your New Salary After The Hike + Bonus

In this case, your new yearly income would be $52,480 and you would receive additional $1,248 per year for your performance-based bonus.

The pros and cons of raising the minimum wage

There are many benefits and setbacks that result from increasing the minimum wage. In a study conducted by the Economic Policy Institute in March 2013, it was found that if the federal minimum wage kept pace with inflation since its peak in real value in 1968, it would be worth approximately $10.75 per hour today.

The pros to an increase include:

• It can stimulate spending when lower-income households, which tend to spend more of their incomes than higher-income households do, benefit from the hike;
• It can help diminish worker turnover;
• The wages of some workers who keep their jobs would increase.

The cons to an increase include:

• Some businesses may be forced to scale back hiring plans because they cannot afford to pay employees under the new wage level;
• Requiring employers to pay $15 per hour could lead some business owners, members of the community or other governments that want smaller government and lower taxes, but still want infrastructure and services funded by tax dollars (social welfare programs like food stamps for example), to change their minds on how much “big government” should be allowed to provide for its citizens;
• If the government raises the minimum wage, many small businesses owners will be forced to raise their prices because they need profit margins to stay open and pay employees;
• It can hurt low-skill workers trying to get a foot in the door, as the cost of not being able to offer them a job may become too costly for some employers.

In conclusion, raising or increasing wages for lower income families has been proven to have both positive and negative effects on society. In order for an increase in wages to be considered successful by all parties involved, it must provide a net benefit for both employer and employee.

There is no one size fits all solution when it comes to this very important debate. The effect that higher wages have on your pocketbook will largely depend on the nature of your job.

FAQs

When will my pay rise from $7 to $8 per hour, as required by law?

At $7 per hour, the new minimum wage would rise to $8 effective December 31, 2013. The wage will then be raised again to $8.75 on December 31, 2014 and to .$9 on December 31 of 2015 where it will stay until at least 2016, when the law is set change again.

What happens if you are receiving tips?

If you receive more than $30 in tips per month your employer must pay you an hourly rate of at least 5 dollars ($5).

If your total wages (including any non-monetary compensation) are higher than the applicable minimum wage, your employer may pay you as little as they choose , subject to their obligation to compensate for worked pursuant to federal laws.

What is Ohio’s minimum wage 2021?

$8.80 per hour

Ohio’s Minimum Wage is currently set at $8.80 per hour for non-tipped employees and an even lower rate of just under two dollars.

Is Ohio minimum wage going up in 2021?

Ohio workers who are employed in non- tipped positions will soon be getting an increase to their minimum wage.

Starting next year, the statewide minimum wage is scheduled to go up by 15 cents per hour until 2021 when it reaches $9.30 – a full 25% greater than what’s currently required under federal law ( Lumina Foundation for Education and Citizenship).

Conclusion

Become an expert on the minimum wage in Ohio by following our blog. We will be posting more information about this topic, including how to apply for a raise or look for new jobs. If you have any questions, please feel free to contact us anytime!