Ohio Minimum Wage Set to Increase in 2020

Ohio Minimum Wage Increases in 2020

On January 1, 2020, Ohio’s minimum wage increased 15 cents. The minimum wage, which is the minimum amount an employer must pay all non-exempt hourly employees, went from the long-standing $8.55 to $8.70 for employees who do not receive tips. The minimum wage for tipped employees also increased by 5 cents, from $4.30 to $4.35. These laws for Ohio minimum wage in 2020 apply to all employees working for establishments with gross receipts of over $319,000 per year.

Why Did Ohio Minimum Wage for 2020 Increase?

Minimum wage in Ohio is set to increase in 2020 because the rate is analyzed yearly and increased with the rate of inflation. This occurs in order to give employees a livable wage. All employers must pay their employees the Ohio minimum wage for 2020 or they could face legal action for violation of the FLSA.

Exemptions for Ohio Minimum Wage 2020

Some employees may be exempt from minimum wage in Ohio for 2020. These exemptions largely depend on the workers age, the nature of the job, and the extent of work completed. Some exemptions include:

  • Farm or seasonal workers
  • Workers under the age of 16
  • In-home workers like babysitters
  • Disabled workers
  • Non-profit camp counselors
  • In a family-owned business, family members of the owner

Records of Wages Earned

Under Ohio minimum wage 2020 laws, employers must keep records up to three years for each employee. These records must be available for the Department of Commerce and should record the employee’s:

  • Name
  • Address
  • Occupation
  • Pay
  • Amount paid each period
  • Hours worked

These records may be examined or copied by the Department of Commerce at any time.

Minimum Wage for Tipped Workers

Workers who receive more than $30 a month in tipped wages are eligible for the reduced “tipped” Ohio minimum wage for 2020. This is a lower amount because the worker makes up for the difference in the tips they receive. In order to elect for this provision, employers must prove that employees are being paid at least minimum wage when tips are combined with this rate.

Federal Minimum Wage vs. Ohio Minimum Wage 2020

Even though the federal minimum wage is lower, Ohio employers must still follow the Ohio minimum wage for 2020 for all workers not listed as exempt. Failing to pay the minimum wage in Ohio for 2020 is a violation of the FLSA and can result in legal action. To avoid any violations, employers should make sure they are aware of the fact that Ohio minimum wage is set to increase in 2020 and display the related poster in a place for employees to see so everyone working in the establishment knows the Ohio minimum wage laws.

Ohio Minimum Wage and Overtime

All workers classified as non-exempt and paid the hourly minimum wage rate are eligible for overtime pay for all hours worked over 40 hours in a given week. The overtime rate correlated to Ohio minimum wage in 2020 is 1.5 times minimum wage, or $13.05. Employers must pay workers this rate for all overtime hours worked in a week, including hours worked outside of their normal scheduled shift or outside of the workplace.

If You’re Not Being Paid Minimum Wage

If you feel that your employer is not giving you the compensation you’ve earned under Ohio minimum wage laws, you’re entitled to payment of that money. Wage and hour lawsuits are not uncommon in the workplace and have helped hundreds of workers get money back they’ve earned while working normal or overtime hours.

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