Honk News – Workers earning the lowest wage in Ohio can look forward to a nice surprise in just a week.
The minimum wage in the state will increase by 25 cents starting January 1, bringing it to $10.70 per hour to adjust for inflation. In Ohio, tipped employees earn a minimum wage of $5.25 per hour, while nontipped workers receive $10.45 per hour. Youth workers earn a minimum wage of $7.25 an hour.
“Ohio voters are to thank for next month’s increase in the minimum wage,” Policy Matters Ohio Economist Heather Smith said. “Voters enshrined adjustments for inflation to the minimum wage law in 2006, when they voted overwhelmingly to raise the state minimum wage. Over 28% of Ohio families with incomes below the federal poverty level will get some relief from rising prices as a result.”
According to estimates from the Economic Policy Institute, approximately 112,700 individuals in Ohio earning below $10.70 will experience a direct wage boost starting January 1. Additionally, around 206,000 workers earning slightly above the minimum wage will also benefit from pay scale adjustments made by employers.
A suggested change to the constitution aimed at increasing the state’s minimum wage to $15 per hour, along with tips, by 2026 did not gather enough signatures to qualify for the ballot earlier this year.
The Ohio Chamber of Commerce has expressed its opposition to the proposed amendment, citing concerns that it would negatively impact small businesses that are still facing challenges.
“The proposed minimum wage amendment to the Ohio Constitution is not only ill-advised and economically detrimental, it would be next to impossible to correct once the unintended consequences transpire,” Chamber CEO Steve Stivers said, including the potential for layoffs and reduced hours for workers.
Key Highlights –
- Workers not receiving tips will earn $10.70 per hour, reflecting an increase of 25 cents.
- Wage increase for tipped employees: now $5.35 an hour, reflecting a 10-cent rise.
- The federal minimum wage remains set at $7.25 per hour for smaller businesses and for those workers who are under the age of 16.
This yearly modification is determined by the Consumer Price Index to account for inflation trends.
These modifications showcase Ohio’s commitment to harmonizing student rights, enhancing educational settings, and providing support for workers through wage changes. Community members and educational institutions need to get ready for these changes in the upcoming year.