Ohio's minimum wage increasing to $7.85 an hour

Ohio's minimum wage increasing to $7.85 an hour

COLUMBUS, OH (WOIO) - Ohio's minimum wage will increase to $7.85 per hour, effective Jan. 1, 2013.

Current minimum wage is $7.70 per hour for non-tipped employees and $3.85 per hour for tipped employees. The later will increase to $3.93 per hour.

The increases apply to businesses with annual gross receipts of more than $288,000 per year - up from a $283,000 threshold set for 2012.

A Constitutional Amendment passed by Ohio voters in November 2006 states that Ohio's minimum wage shall increase on Jan. 1 of each year by the rate of inflation. The state minimum wage is tied to the Consumer Price Index (CPI) for urban wage earners and clerical workers for the 12-month period prior to September. This CPI index rose 1.7 percent from Sept. 1, 2011 to Aug. 31, 2012. The Amendment also states that the wage rate for non-tipped employees shall be rounded to the nearest five cents. The Constitutional Amendment is available at: www.legislature.state.oh.us/constitution.cfm?Part=2&Section=34a.

For employees at smaller companies (with annual gross receipts of $283,000 or less per year in 2012 or $288,000 or less per year after Jan. 1, 2013) and for 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.

Information on Ohio's 2013 minimum wage is available at http://www.com.ohio.gov/laws/docs/dico_2013MinimumWageposter.pdf.