Minimum Wage for Tipped Employees in Ohio

Ohio Minimum Wage for Tipped Employees

Tipped employees are covered by both state and federal minimum wage law in Ohio. The federal minimum wage for tipped employees is lower than the state law, which means employers are required to apply the minimum wage in Ohio.

Federal Law

Federal minimum wage for tipped employees in 2020 is $2.13 per hour. In order to pay this rate, an employer must ensure that your wages plus your tips equal at least the federal minimum wage.

Calling this a “federal minimum wage for tipped employees” is a bit misleading. The law allows the employer to take a “tip credit” against the full amount of the federal minimum wage in 2020 of $7.25 to account for tips the employee receives and reduce the amount of wage the employer is obligated to pay. In order to apply this tip credit and reach the 2019 $2.13 per hour federal minimum wage for tipped employees, the employer must comply with several requirements set forth in the federal minimum wage laws.

It is important to know that minimum wage for tipped employees in Ohio is higher than the federal minimum wage, due to Ohio wage laws.

If you believe your employer is not following the federal minimum wage for tipped employees, give the Paycheck Warriors at Barkan Meizlish, LLP a call.

Ohio Law

In Ohio, the minimum wage for tipped employees is $4.35 in 2020. In order to pay this rate, an employer must ensure that your wages plus your tips equal at least the minimum wage.

Calling this amount the “minimum wage for tipped employees” is a bit misleading. The law allows the employer to take a “tip credit” against the full amount of the Ohio minimum wage in 2020 of $8.70. This allows employers to account for tips employee receives, and reduce the amount of wage the employer is obligated to pay. In order to apply this tip credit and reach the 2020 $4.35 per hour baseline, the employer must comply with several requirements set forth in both the federal and state minimum wage laws. Find more information about Tip Credit application here.

If you believe your employer is not following the federal minimum wage for tipped employees, the Paycheck Warriors at Barkan Meizlish, LLP are here to help!

Jessica Doogan

Originally published November 19th, 2019. Updates reflect changes to the Ohio minimum wage in 2020


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