Ohio Minimum Wage Now $7.00

January 18th, 2008 Posted by Amelia

On January 1, 2008, Ohio raised its state minimum wage by 15 cents from $6.85 to $7.00 per hour. Tipped workers will receive a minimum wage of $3.50 per hour.

Businesses with annual gross earnings of less than $255,000, however, are still covered by the federal minimum wage of $5.85, rather than the state wage of $7.00. No matter the age of the employee, even as young as 14 or 15, these employers must at least pay their workers the federal minimum.

On July 24, 2008, the federal minimum wage is slated to increase to $6.55, so companies earning less than $255,000 will then be required employees the new federal rate.

The Ohio Department of Commerce requires all businesses that gross over $150,000 annually to pay overtime. Overtime is paid at a rate of 1.5 times the normal rate for any time over 40 hours in one week. Companies with earnings less than $150,000 are exempt from Ohio’s state overtime law. Employees in these businesses, however, may be eligible for overtime under federal statute.

Ohio has seen several significant changes in its labor laws over the past two years. The Ohio smoking ban was enacted, prohibiting smoking in public places and nearly all workplaces. Employers, according to this ban, must display non-smoking signs in a prominent position at every entrance.

Several types of employees are exempt from Ohio’s state minimum wage law. Babysitters or live-in companions are exempt, but housekeepers aren’t. Employees of a non-profit camp or recreational area for minors are exempt from Ohio state minimum wage law, as are employees working for a charity. Persons paid on commission, such as outside salespeople, are also exempt.

According to federal law, any worker who puts in more than 40 hours in any one week is entitled to overtime, which is paid at 1.5 times the standard hourly rate. Like Ohio, several states have enacted their own overtime laws. These laws vary widely from state-to-state and across the country.

January 1, 2008 saw the first of a series of changes in minimum wage laws across the country. Fourteen states, including Arizona, California, Massachusetts and Vermont raised their state minimum wages on that day.

Later in the year, Illinois will add 25 cents to its minimum of $7.50 to $7.75 per hour. Michigan will also increase its minimum by 25 cents resulting in a new rate of $7.40 per hour. These changes will go into effect on July 1, 2008, along with changes in three other states.

Pennsylvania workers will enjoy a 90 cent per hour raise to their minimum wage rate, giving them a new minimum of $7.15 per hour.

On July 24, 2008, the federal minimum will go from $5.85 to $6.55 per hour.

This increase is the second step of a three-step system set up by the Fair Minimum Wage Act of 2007. This Act was signed into law by President George W. Bush on May 24, 2006.

Many states have their own minimum wage laws, and several tie the increases to their minimum rates to the increase in the federal minimum wage. On July 24, 2008, therefore, North Carolina, North Dakota and Indiana, among others will enact a rise in their minimum wage rates, too.

The District of Columbia’s minimum wage is required by law to be at least $1.00 more than the federal rate. On July 24, 2008, D.C.’s rate will therefore rise to $7.55 per hour.

Whenever a change occurs in any labor law, employers must update their labor law posters or face the possibility of a fine. Companies are required to display these posters in prominent spots in the employee work area, and to update for both state and federal law changes. Businesses seeking up to date information can visit www.laborlawcenter.com.

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Posted in Employment Laws, Minimum Wage, Ohio, Wage and Hour

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