Ohio’s Minimum Wage Increased for 2018

Ohio’s Minimum Wage Increased for 2018

Late last year, the Ohio Legislature passed a law amending the state’s minimum wage law. Starting on January 1, 2018, the wage increased from Ohio’s minimum wage of $8.15 to $8.30 per hour. The change marks an increase of more than a dollar over the federal threshold. Similarly, the new wage for tipped employees will also increase from $4.08 to $4.15. If you are a non-salaried worker and your paycheck has not registered the recent increase in the state’s minimum wage, you should contact a Columbus wage and hour violations lawyer who can help determine the cause of the discrepancy.

Federal vs. State Minimum Wage

Under the Fair Labor Standards Act (FLSA), the federal minimum wage is set at $7.25 an hour, a rate that has not changed in nine years. In contrast, Ohio’s minimum wage rises every year by the rate of inflation, which was roughly 1.9 percent between September of 2016 and August of 2017. The yearly change is possible due to the passage of a constitutional amendment by Ohio voters in 2006. Employees in Ohio, like those in other states, are also subject the federal minimum wage laws. Fortunately, in these cases, employers are required to apply the law that provides the greatest benefits to employees.

Exceptions

The increase in the minimum wage does not apply to all employees. For instance, the minimum wage for companies with annual gross receipts of $305,000 or less remains at the federal threshold of $7.25. Similarly, the wage for 14 and 15 year old employees in Ohio remains the same.

Tipped employees, who are defined as those engaged in an occupation in which they regularly receive more than $30 a month in tips, also qualify for an increase in pay. The wages of these individuals are calculated based on a specific minimum wage that is applicable only to tipped employees, an amount that was recently raised to $4.15. However, employers who elect to pay this lower wage must be able to provide evidence that tipped employees receive at least the minimum wage of $8.30 when tip credit amounts are combined with direct or cash wages.

Future Increases

Recently, the city of Cleveland attempted to raise its minimum wage to $15 per hour. The movement lost steam late last year, when Ohio lawmakers passed a law that prohibits cities in the state from setting minimum wage rates that are higher than the state’s. Recently, Democratic lawmakers revisited the issue by once again pushing a bill that, if passed, would incrementally raise Ohio’s minimum wage to $15 by 2025.

Contact an Experienced Columbus Wage and Hour Violation Attorney

The recently implemented changes to the minimum wage law could have a significant impact on the wages of hourly workers, so if you are being paid below the current minimum wage, you should speak with an attorney who can help you collect back pay. For help with your own wage and hour violation claim, please contact Marshall Forman & Schlein LLC by calling (614) 463-9790 or by sending an email to info@www.marshallforman.com. today.