Effective January 1, 2024, Ohios minimum wage will increase to $10.45 per hour for non-tipped employees and $5.25 per hour for tipped employees. This is an increase of 35 cents an hour for non-tipped employees from the current rate of $10.10 per hour. The minimum wage will apply to employees of businesses with annual gross receipts of $385,000 per year. For employees at smaller companies with annual gross receipts of $385,000 or less per year after Jan. 1, 2024, and for 14- and 15-year-olds, the state’s minimum wage is $7.25 per hour. The current federal minimum wage is $7.25 per hour.

Ohios minimum wage is determined by an Ohio State Constitutional amendment passed in 2006, which states that Ohio’s minimum wage shall increase on January 1 each year by the rate of inflation. 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 prior to September. The CPI-W index increased by 3.7% over the 12-month period from Sept. 1, 2022, to Aug. 31, 2023.

In summary, the minimum wage in Ohio for non-tipped employees will be $10.45 per hour and for tipped employees will be $5.25 per hour starting January 1, 2024. The minimum wage will apply to employees of businesses with annual gross receipts of $385,000 per year. For employees at smaller companies with annual gross receipts of $385,000 or less per year after Jan. 1, 2024, and for 14- and 15-year-olds, the state’s minimum wage is $7.25 per hour.