On September 30, 2015, the Ohio Department of Commerce announced
that based upon the Ohio Constitutional provisions regarding
minimum wage, the 2016 minimum wage will remain unchanged at $8.10
per hour for non-tipped employees and $4.05 per hour for tipped
employees. Of course, tipped employees must receive enough in
tips to make up the difference between $4.05 and $8.10 in order for
an employer to apply a tip credit. While that may sound like
good news for employers, particularly those in the food service
industry where many employees receive a large portion of their
total earnings in tips, what might not be as good news is that the
Consumer Price Index for urban wage earners and clerical workers
for the 12 month period ending August 31, 2015 showed a
deflationary decrease of 0.3%.
The Ohio Minimum Wage applies to all employers in Ohio with annual
gross receipts in excess of $297,000. The Ohio minimum wage
does not apply to 14 and 15 year old employees or small employers
with annual gross receipts below the threshold. Such
employers are covered, however, by a state minimum wage that is the
equivalent of the federal minimum wage, which is $7.25 per
hour.
Many employers in Ohio already pay more than $8.10 per hour for
entry level employees due to competitive demands. However,
please contact any one of our attorneys if you need assistance in
dealing with tipped employees who receive tip credit and some of
the challenges calculating and recording overtime and reporting
earnings.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
