Under the November 2006 Constitutional Amendment (II-34a) approved by voters of Ohio for the state constitution, the Ohio minimum wage rises each January based on inflation. For 2026, that means most workers must be paid at least $11.00 per hour, while tipped employees must earn at least $5.50 in cash wages with tips. The law also protects small businesses, sets clear overtime rules, and imposes heavy penalties on employers who violate the law. This guide explains every aspect of Ohio’s wage law, from tip credits and overtime to record-keeping obligations and posting requirements, so employers can stay compliant with the latest labor laws.
2026 Ohio Minimum Wage Rates
As of January 1, 2026, Ohio’s minimum wage is $11.00 per hour for non‑tipped employees and $5.50 per hour for tipped employees, with the difference seen in the tipped wage. These rates apply to employers whose gross income is more than $405,000; smaller businesses may pay the federal minimum wage. The current USA minimum wage rate is $7.25 per hour. The annual adjustments are based on Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) inflation and typically result in a 2.8% increase.
| Employee Type | Minimum Wage (2026) |
|---|---|
| Non-tipped employees | $11.00 per hour |
| Tipped employees (cash wage) | $5.50 per hour |
| Small businesses (under revenue threshold) | $7.25 per hour (federal rate) |
| Workers under age 16 | $7.25 per hour (federal rate) |
The table below tracks the Ohio minimum wage from 2017 through 2026, illustrating the steady rise resulting from the inflation index.
| Year | Standard Minimum Wage | Tipped Cash Wage |
|---|---|---|
| 2026 | $11.00 per hour | $5.50 per hour |
| 2025 | $10.70 per hour | $5.35 per hour |
| 2024 | $10.45 per hour | $5.23 per hour |
| 2023 | $10.10 per hour | $5.05 per hour |
| 2022 | $9.30 per hour | $4.65 per hour |
| 2021 | $8.80 per hour | $4.40 per hour |
| 2020 | $8.70 per hour | $4.35 per hour |
| 2019 | $8.55 per hour | $4.28 per hour |
| 2018 | $8.30 per hour | $4.15 per hour |
| 2017 | $8.15 per hour | $4.08 per hour |
These figures show that the Ohio minimum wage has grown by nearly 35% since 2017. Employers should watch for the Ohio Department of Commerce annual announcement each September and update payroll systems accordingly. A workplace Compliance Subscription or similar service can help ensure you receive timely alerts about future changes.
What is the Tip Credit Under the Ohio Minimum Wage Law?
The tip credit allows Ohio employers to count a portion of an employee’s earned tips toward meeting the Ohio minimum wage 2026 requirements. These credits do not reduce the employee’s pay; rather, when permitted, employers may apply a set amount of the tips received to satisfy their minimum wage obligation.
Who Qualifies as a Tipped Employee?
Under the Ohio minimum wage 2026 law, a tipped employee is someone who:
- Works in a job where tipping is customary and regular, and
- Earns more than $30 per month in tips
Cash Wage for Tipped Employees in 2026
Employers may use a tip credit equal to 50 percent of the standard wage rate. For 2026, this means:
- Employers may pay tipped employees a cash wage of $5.50 per hour, and
- The remaining earnings must come from tips
How the Tip Credit Works
The tip credit is only allowed if the employee’s Cash wages plus tips equal or exceed the required hourly pay for every hour worked. If tips are too low to meet this requirement, the employer must pay the difference. Employees can never be paid less because tips fall short. To use the credit, employers must:
- Track tips accurately. Employees’ tips plus cash wages must equal or exceed the full $11.00 per hour minimum; otherwise, the employer must make up the difference.
- Keep records. Employers should maintain daily tip reports and payroll records showing each employee’s tip income.
- Avoid tip theft. Employers may not withhold tips or force employees to share tips with managers or owners. Tip pooling is permitted only among employees who customarily receive tips.
For example, a worker works 30 hours a week and is paid $5.50 per hour in cash wages, totaling $165. If the worker earns $200 in tips, their total pay is $365, so no adjustment is needed. If the worker earns only $100 in tips, the employer must pay an additional $65 to make sure the employee is fully paid. This ensures the worker is not penalized when tips are low.
What are the Overtime Requirements in Ohio?
Ohio’s overtime rules mirror federal law but include one notable exception. Employers covered by state law must pay one and one-half times an employee’s wage rate for hours worked beyond 40 hours in any workweek. This overtime pay requirement does not apply to employers with annual gross receipts under $150,000; however, such employers may still be covered by the federal FLSA if they engage in interstate commerce, in which case federal overtime rules apply.
Local Ohio Minimum Wage
Unlike states such as California or Arizona, Ohio prohibits local governments from enacting their own minimum-wage ordinances. In 2016, the General Assembly passed Senate Bill 331, which states that “no political subdivision shall establish a minimum wage rate different from the wage rate required under this section.” This law was designed to prevent a patchwork of city-specific wage rules.
- Cities and municipalities in Ohio cannot set a minimum wage higher than the state rate.
- Local governments must follow the Ohio minimum wage.
- Some cities have living-wage ordinances that apply only to:
- City contractors, or
- Specific public projects
Therefore, employers should follow the Ohio state minimum wage rate in all Ohio jurisdictions. If your business operates in multiple states, using a all-on-one labor law poster can help track labor law changes and ensure adherence to the highest applicable wage requirements.
Wages for Youth and Training Workers
| Category | Wage Requirement |
|---|---|
| Under-16 Workers in Ohio | Employers may pay workers under age 16 at least the federal minimum wage (currently $7.25/hour). |
| 16 or Older (State Min Wage) | Employees aged 16 and over must be paid at least the Ohio state minimum wage unless a federal exemption applies. |
| Training Wage (Under 20) | Ohio does not prohibit the federal $4.25 training wage; employers must ensure compliance with Fair Labor Standards Act (FLSA) requirements. |
| Apprentices | The Ohio Director of Commerce may issue licenses that allow employers to pay apprentices no less than 85% of the minimum wage for up to 90 days under the licensing conditions set in Section 4111.07. |
Who is Exempt From the Ohio Minimum Wage
Ohio does not set its own salary threshold for exempt employees; instead, it uses the federal standards under the FLSA. To classify an employee as exempt from overtime, all of the following must apply:
- Federal government employees, since their pay is governed by federal rules.
- In-home babysitters and live-in companions who provide care to children, elderly individuals, or those who are ill, as long as housekeeping is not their primary duty.
- Outside sales employees and exempt salaried workers, including those in legitimate executive, administrative, professional, or computer-related roles who meet exemption requirements.
- Unpaid or nominally paid volunteers working for state or local government agencies, provided they are not performing the same work they are otherwise employed to do.
- Individuals performing charitable services at hospitals or health care institutions, when there is no expectation of pay.
- Employees working at nonprofit camps or recreational programs designed for children under the age of 18.
- Immediate family members employed by a business that is entirely owned and operated by their family.
What Records to be Kept by the Employer in Ohio
Ohio’s minimum‑wage law imposes strict record‑keeping and notice requirements. Employers must:
- Post notices: Display the current state minimum wage poster in a conspicuous location at each workplace. For remote workers, provide the poster electronically or via the company intranet. Posters may be downloaded from the Ohio Department of Commerce or purchased through an Ohio Labor Law Poster service.
- Maintain payroll records for at least three years: Records must show each employee’s name, address, occupation, rate of pay, amounts paid, and hours worked each day and week. Employers must make records available for inspection by the Director of Commerce and may not hinder or delay such inspections.
Failure to keep proper records creates a rebuttable presumption that the employer violated the wage law.
What Labor Law Posters are Required in Ohio?
To comply with Ohio and federal posting requirements, employers should display the following notices in an area accessible to all employees:
Ohio Labor Law Posters Required in Ohio
- Civil Rights Act
- Ohio State Minimum Wage
- Minor Labor Laws
- Smoking Notice
- WC Rebuttable Presumption
- Workers' Compensation Certificate Sample
Federal Labor Law Posters Required in Ohio
- EEOC "Know Your Rights" Notice
- Fed-OSHA "It's the Law" Notice
- Employee "Right to Know" Notice
- USCIS Discrimination Notice
- Federal Minimum Wage Notice
- Employee Polygraph Protection Notice
- Family and Medical Leave Act Notice (download only where required)
- USERRA Rights and Benefits Notice
- Payday Notice (Meets notification requirements)
- IRS EITC / Notice 797 / W-4 Notice (Meets notification requirements)
Staying current with posting requirements is critical. Failure to post required notices can undermine an employer’s defense in wage disputes and may lead to civil penalties. Consider subscribing to the Workplace Compliance Subscription to receive new posters whenever laws change.
Penalties for Wage Violations in Ohio
Ohio's minimum wage statute has enforced severe measures to ensure that the law is not violated. Employers who do not pay the appropriate wage or respond to employees asserting their rights through retaliation may be sued by employees for the following:
- Unpaid wages plus an equal amount in liquidated damages: Section 34A permits employees to receive compensation equal to two times the amount of Unpaid Wages (effectively double back wages).
- Civil penalties for retaliation: If an employer disciplines, fires, or otherwise retaliates against a worker for filing a wage complaint or assisting in an investigation, the employer must pay the worker at least $150 per day for each day the violation continued under section 4111.14.
- Presumption of liability: Failure to keep required payroll records creates a presumption that the employer owes the claimed wages.
Because these penalties can quickly exceed the original underpayment, employers should treat wage claims seriously, cooperate with investigations, and correct any payroll errors promptly.
Practical Takeaways for Ohio Workers and Employers
Ohio's minimum wage will be adjusted based on inflation, which will help employees keep pace with the increasing costs of living. It is projected to be $11 per hour in 2026, and tips will remain at $5.50 an hour plus tips for all tipped employees. Employers whose gross receipts are less than $405,000 are permitted to pay employees the federal minimum wage of $7.25; employees under 16 years of age may be paid the federal minimum wage of $7.25.
In addition to providing overtime pay after 40 hours per week, employers are required to maintain time records for three years and provide employees with labor law notifications from both the State and Federal governments. There are no separate minimum wages set by local municipalities in Ohio. If a complaint is found to be valid, the employer may be obligated to pay the employee twice the unpaid wages plus any other penalties. Employers should keep track of the annual increase in the minimum wage and display posters that show both state and federal labor laws so that they may avoid being subjected to any fines or penalties.
FAQs
Will Ohio’s minimum wage increase again in 2027?
Yes. According to Section 34a, the minimum wage is to be adjusted each year based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Director of Commerce will announce the 2027 rate by September 30, 2026. Although future inflation is uncertain, employers should budget for a small increase and monitor labor law updates.
What is the cash wage for tipped workers in 2026?
Can an Ohio city set a higher minimum wage?
Who enforces Ohio’s minimum wage law?
Are there exceptions for youth or students?
Beyond the minimum wage, see our full Ohio labor laws guide covering posters, leave and safety.