Ohio’s minimum wage will go up 10 cents to $7.95 per hour beginning Jan. 1.
The minimum wage for tipped employees will climb 5 cents to $3.98 an hour, the Ohio Department of Commerce said Thursday.
News of the increase comes shortly after a successful high-profile effort in California to raise that state’s minimum wage to $10 an hour. The increase will be in two steps by 2016. The increase will make California the first state to raise its minimum wage to $10.
California’s minimum wage is currently $8 an hour.
In California and six other states, tipped workers receive the full minimum wage in the state — with any tips received on top of that.
The hike in Ohio is mandated by a state constitutional amendment, approved by voters in 2006, which annually adjusts the state minimum wage based on the Consumer Price Index.
Ohio is among several states where minimum wage earners will see their pay grow because of annual increases linked to inflation.
For this year, the minimum wage increased 15 cents to $7.85 an hour. For tipped employees, the minimum rose to $3.93 per hour for this year.
Beginning Jan. 1, there also will be a change concerning which businesses must pay the minimum.
With the coming year, employers with annual gross receipts of more than $292,000 a year must pay the minimum. That compares with $288,000 this year.
Companies with gross receipts of less than $292,000 must pay the federal minimum wage, which is $7.25 an hour. The federal minimum requires an act of Congress and the president’s signature to change.
The Consumer Price Index rose 1.5 percent over the 12-month period from Sept. 1 to Aug. 31.
The state amendment passed by voters in 2006 says that the wage rate for non-tipped employees is to be rounded to the nearest 5 cents.
For information on other states’ minimum wage rates, go online to www.dol.gov/whd/minwage/america.htm.
Because of the federal government shutdown, the site is not being regularly updated.
Katie Byard can be reached at 330-996-3781 or email@example.com.