Minimum Wage to Increase in January 2019

Minimum Wage to Increase in January 2019

December, 2018

In 2006, Ohio voters approved an amendment to the state’s Constitution, as a result of which, the minimum wage is scheduled to increase every year based on inflation rates. The current 2018 Ohio minimum wage of $8.30 per hour for non-tipped employees and $4.15 for tipped workers, will increase next month to $8.55 and $4.30 respectively. Unlike this year, the minimum wage will now apply to employees who work for companies with an annual gross income of more than $314,000, which represents an increase from 2018’s threshold of $305,000.

The minimum wage is strictly enforced by both state and federal agencies, so if your employer is failing to pay you the minimum wage, you should contact an experienced wage and hour violation lawyer who can help you file a claim with either the Ohio Division of Labor or the U.S. Department of Labor.

Federal Minimum Wage Law

Unlike Ohio’s minimum wage, which is adjusted every year, the federal minimum wage of $7.25 an hour has not changed since 2009. There is an exception, however, for employees who perform work on or in connection with a covered federal contract. This is because in 2014, the Department of Labor announced that starting in 2015, the minimum wage for these contractors would be increased to $10.10 per hour, an amount that would be adjusted on a yearly basis, although tipped employees who performed work on federal contracts were still to be paid a minimum wage of $7.25 per hour. These rates were recently increased, so beginning on January 1, 2019, federal contractors will be required to pay covered employees no less than $10.60 per hour, which represents a 25 cent increase from this year. Covered tipped employees who work on federal contracts must also be paid at the higher rate of $7.40 per hour, an increase over the standard federal minimum wage of 15 cents.

Ohio’s Increased Minimum Wage

Fortunately, even though the federal minimum wage is significantly lower than Ohio’s, federal law requires employers to pay eligible employees the higher of the two conflicting amounts. This means that Ohio residents who are paid on an hourly basis and who do not fall under an exempt category must be paid at least $8.55 per hour, unless they qualify as tipped employees, in which case, they must be paid no less than $4.30 per hour. Ohio employees can also expect the wage to continue to change each year, as the amount is based on the Consumer Price Index, which measures annual alterations in the price level of consumer goods and services and then applies those changes to the minimum wage.

Call Today for Legal Assistance

To speak with an experienced wage and hour violation attorney about whether you are being paid in accordance with state and federal law, please call (614) 463-9790. You can also reach one of the dedicated attorneys at Marshall & Forman, LLC by sending an email to info@marshallforman.com.