Starting January 1, 2013, Ohio’s minimum wage is scheduled to increase to $7.85 per hour for nontipped employees. The minimum rate for tipped employees will increase to $3.93 per hour plus tips.
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The new minimum wages will apply to employees of businesses with annual gross receipts of more than $288,000 per year, an increase from the 2012 threshold of $283,000 per year.
The increases were scheduled due to a 2006 constitutional amendment passed by Ohio voters requiring Ohio’s minimum wage to increase annually based on the rate of inflation. The increases are tied to the Consumer Price Index (CPI) for urban wage earners and clerical workers, which rose 1.7 percent from September 1, 2011, to August 31, 2012.
For employees at smaller companies and for 14- and 15-year-olds, the Ohio minimum wage is tied to the federal minimum wage of $7.25 per hour.
Ohio is 1 of 10 states that index minimum wages to inflation. The others are Arizona, Colorado, Florida, Missouri, Montana, Nevada, Oregon, Vermont, and Washington. Washington has the highest state minimum wage at $9.04 per hour.