Ohio business owners – get ready! Ohio’s minimum wage is set to increase on January 1st, 2024, to $10.45 per hour for non-tipped employees and $5.25 per hour for tipped employees. The new minimum wage will apply to employees of businesses with annual gross receipts of more than $385,000 per year. Currently, the minimum wage is $10.10 per hour for non-tipped employees and $5.05 per hour for tipped employees. In addition, the 2023 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $372,000.
History Of Minimum Wage
The Constitutional Amendment passed by Ohio voters in November 2006 states that Ohio’s minimum wage must increase on January 1st each year based on the inflation rate. To determine this, the state minimum wage is tied to the Consumer Price Index (CPI-W) for urban wage earners and clerical workers over the 12-month period before September. This index increased by 3.7% from September 1st, 2022, to August 31st, 2023.
What This Means For Small Business Owners
As a small business owner, this change, which is rather small in the eyes of some, may seem like a significant increase. For employees at companies with annual gross receipts of $385,000 or less per year after January 1st, 2023, and for 14 and 15-year-olds, the minimum wage in Ohio is $7.25 an hour. This wage is tied to the federal minimum wage of $7.25 an hour, which, to change, requires an act of Congress and the President’s signature.
Employers are required to post the most recent minimum wage poster in their business. To access the 2024 minimum wage poster, click here.
Leverage PEO Expertise
In the face of Ohio’s minimum wage increase in 2024, business owners find themselves at a crucial stage, seeking different ways to navigate these changes seamlessly. Have you ever heard of a professional employer organization (PEO)? A PEO gives business owners access to expertise in managing HR functions, payroll, compliance, and benefits. PEOs offer tailored solutions, from optimizing employee benefits to streamlining payroll processes, enabling businesses to adapt effectively to the new wage standards.
Embracing the assistance of a PEO could be the key for Ohio businesses to not only weather the minimum wage increase but also to foster growth, stability, and success in the years to come. Fortunately, Group Management Services (GMS) is headquartered in Richfield, Ohio, ready to step in and help all business owners in Ohio navigate this wage increase. Get a quote from us today to kickstart your business in 2024.