12.15.06
Details of Ohio's Minimum Wage Increase
In November, Ohio voters passed Issue 2, raising the state's minimum wage from $5.15 to $6.85 per hour. This change, which is effective January 1, 2007, actually raises Ohio's minimum wage above the federal minimum wage. On January 1 of each year, the minimum wage will be adjusted based on the Consumer Price Index for the year ending September 30.
The current federal minimum wage ($5.15 per hour) will continue to apply to employees under the age of 16 and employees of businesses whose previous year's gross receipts were $250,000 or less. The gross receipts figure will also be raised yearly based on change in the Consumer Price Index.
Businesses whose employees meet any of the following conditions will be able to pay these employees less than Ohio's minimum wage:
- The employee earns tips, and the combination of the wage and tips equals more than the minimum wage.
- Employees are family members who are working for a family owned and operated business.
- Employees are mentally or physically handicapped individuals, for which the employer has a state license to employ.
The new law also requires additional record keeping requirements for employers. Records of employment must now be kept for three years after the last date of employment. Employment records are now open to employees and anyone acting on the employee's behalf.
If you need any additional information on this issue, please contact your SS&G representative.