labor lawAdivision of labor law center

The state Department of Commerce recently announced that the 2010 Ohio minimum wage will remain at $7.30 per hour.  

This is good news for employers across Ohio, who had been bracing for another annual increase on January 1, 2010. Under an amendment to the constitution passed by voters in November 2006, the Ohio minimum wage will increases each year on January 1.

However, the Ohio minimum wage increase is based on inflation for the previous year – specifically, it is based on the Consumer Price Index or CPI for urban wage earners and clerical workers for the 12-month period ending August 31. So the 2010 Ohio minimum wage is based on the CPI for September 2008 through August 2009.

During that period, the CPI declined by 0.2%. By law the Ohio minimum wage cannot be reduced, but it will not be increased in 2010, either.

The Ohio minimum wage applies to employers with annual revenue of more than $267,000. Employers grossing less than $267,000 per year can pay just $7.25 per hour – an amount equal to the federal minimum wage. The minimum wage for employees who are 14 or 15 (more…)

 According to the Ohio Department of Commerce, the state of Ohio increased its minimum wage as of January 1, 2009.

The Ohio minimum wage, which tracks the cost of living, went up by 30 cents an hour. The old rate was $7.00 per hour and the new rate is $7.30.

The increase in Ohio is not the largest increase in the minimum wage nationwide. In Washington, the increase was 48 cents an hour – to $8.55 hourly from $8.07. Oregon experienced a 45-cent hike, bringing its rate to $8.40 hourly. Connecticut’s rate also went up by 45 cents an hour. The new Connecticut minimum is now $8.00 an hour.

Altogether, 11 states increased their minimum wage rates as of January 1, 2009.

The largest actual minimum wage increase was in New Mexico. Under a new law passed by voters in 2006, the rate went up $1.00 an hour, from $6.50 to $7.50. New Mexico’s increase was not based on the cost of living, however.

In November of 2006, voters in Ohio approved a constitutional amendment mandating that the minimum wage track the inflation rate annual. The state uses the Consumer Price Index (CPI) for urban wage earners and clerical workers for a 12-month period that ends each August.

Because the CPI climbed 4.6% between September 1, 2007 and August 21, 2008, Ohio’s minimum wage also showed an atypically large jump, as did the wage rates in several other states as well.

This January 1 the minimum wage for Ohio workers receiving tips also went up. The new rate is $3.65 hourly, an increase of 15 cents. If a tipped employee in Ohio does not earn an average of $3.65 an hour in tips, then the management is required to make up the difference.

Ohio law has an exception whereby smaller companies may pay their workers less than larger companies do. If revenue is below $267,000 in 2009, the company is allowed to pay $6.55 an hour. However, that will only be the case until July 24, 2009, when the new federal minimum wage of $7.25 an hour overrides lower rates.

On January 1, 2009 the Ohio minimum wage increases by 30 cents from $7.00 to $7.30 per hour.  

On that same date, the Ohio minimum wage for tipped employees increases by 15 cents, from $3.50 to $3.65 per hour, according to the Ohio Department of Commerce. Any tipped Ohio employee who does not average $3.65 per hour in tips must be paid the difference in wages by the employer.

Under Ohio law, smaller companies can pay employers less. Companies with revenue less than $267,000 in 2009 can pay just $6.55 under the Ohio minimum wage law. However, when the federal minimum wage increases on July 24, 2009, they must pay at least $7.25 per hour. Youths who are 14 and 15 years of age can also be paid these reduced wages.

A constitutional amendment passed by Ohio voters (more…)

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.

Employers in Ohio will face a minimum wage increase on January 1, 2008 when the state rate increases 15 cents from $6.85 per hour to $7.00 per hour. The rate for tipped employees in 2008 is $3.50 per hour.

Ohio employers who gross less than $255,000 per year continue to be covered under the federal, rather than the state, minimum wage statute. They must pay at least the federal minimum wage of $5.85 per hour to all employees, including those as young as 14 or 15.

When the federal minimum wage increases on July 24, 2008 employers who gross less than $255,000 per year will be required to pay all workers at least $6.55 per hour. 

According the Ohio Department of Commerce, any Ohio employer who grosses more than $150,000 per year is required to pay overtime of 1.5 times the employees usual rate after 40 hours. Employers with annual revenue less than $150,000 per year are exempt from the Ohio overtime law, although they may be required to pay overtime under federal law.

The past two years saw some significant changes to the labor law scene in Ohio. The Ohio smoking ban went into effect, making it illegal to smoke in public places and in virtually every place of employment. The law also requires employers to prominently post non-smoking signs at all entrances.

The state minimum wage law exempt a number of employees from the overtime provision, including babysitters or live-in companions, but not housekeepers. Outside salespeople paid on commission, those working for a charity or employees of a non-profit camp or recreational area for minors are also exempt. The law also exempts family members, provided they are employed by a family-owned and operated business, and related to the owner.

There is a very wide variation in state overtime laws throughout the nation.

When an employee works more than 40 hours a week, federal law says that worker is entitled to 1.5 times the usual hourly rate, or “overtime”. Many states have also enacted overtime laws. In Delaware, Idaho and others that don’t have a state overtime law, most employees are covered by the federal law. If federal law doesn’t apply in these states, many workers are not entitled to overtime.

Among the states that have enacted statues for overtime, California seems to offer the worker the greatest benefit. Any single day where an employee works more than 8 hours qualifies for overtime, as does over 40 hours per week. The seventh consecutive day worked entitles the employee overtime, and after 8 hours on those days, double time–twice the hourly rate–is paid.

Connecticut also provides overtime for workers on the seventh day in a row, but only for workers in hotels and restaurants. Kentucky also pays overtime on day seven, regardless of the number of hours worked up till then.

Many of the states across the country, such as Illinois, Nebraska and Michigan merely follow the federal law’s lead and require overtime pay for more than 40 hours per week.

State laws regarding overtime can be quite different. State laws for employees who also receive tips, are just as different.

Federal law ranks minimum wage for tipped employees at $2.13 per hour. As with the overtime laws, many states simply mirror the federal law and pay $2.13 as well.

A few states pay slighter higher, like Wisconsin at $2.33 per hour and Michigan at $2.65 per hour. At the low end of the range is Kansas with $1.59 per hour.

At the opposite end of the spectrum are those states that don’t allow much, if any, credit for a worker’s tips. Companies in Hawaii are allowed to pay tipped workers $7.00 per hour instead of $7.25, the state minimum. Washington allows employers no tips at all and requires employers to pay tipped and non-tipped workers the state minimum wage, which on January 1, 2008 will be $8.07 per hour.