Ohio raised the minimum wage for employees effective 1/1/2013 by $0.15 per hour. The new minimum wage for non-tipped employees increased to $7.85 per hour. Tipped employees’ minimum wage also rose to $3.93 per hour.
Non-tipped employees are defined as those who do not customarily receive more than $30.00 in monthly tips. Conversely, tipped employees regularly receive more than $30.00 per month in tips. Employers who elect to compensate at the tipped rate must be able to show that the tipped employees receive at least the minimum wage when direct or cash wages and the tip credit amount are combined.
Overtime rates rose as a result of the change in the base minimum wage rate. Overtime is required in Ohio if the employee works more than 40 hours in one work week. The minimum overtime for hours in excess of 40 per work week is one and one-half times the base rate.
The new rate applies to businesses that gross more than $288,000 annually. If the firm does not gross more than $288,000 annually they must still comply with the federal minimum wage rate of $7.25 per hour. Likewise, employees who are under 16 are exempt from Ohio minimum wage laws but must be paid at least the federal minimum wage rate.
The Ohio Department of Commerce requires that Ohio businesses maintain payroll records for at least three years, showing the name, address, occupation, rate of pay, amount paid each pay period, and hours worked each day and each work week.
There are some additional exemptions under Ohio minimum wage rules. Those include employees of the federal government, volunteers and family members of the owner of a solely family owned and operated business. For more on the specific, please refer to the Ohio Department of Commerce, Division of Industrial Compliance.
One additional note for employers. Ohio requires that a minimum wage poster be conspicuously displayed in the work place. A link to the 2013 poster can be found at http://www.com.ohio.gov/laws/docs/dico_2013MinimumWageposter.pdf