Ohio Minimum Wage 2025 Breakdown: Rates and Business Criteria

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Key Takeaways

• Ohio minimum wage rises January 1, 2025, to $10.70 for large businesses’ non-tipped employees.
• Tipped employees must earn $5.35 hourly plus tips totaling $10.70 minimum wage.
• Small businesses with ≤$394,000 gross receipts pay federal minimum $7.25 hourly.

Understanding and Complying with Ohio’s Minimum Wage Laws for 2025: A Step-by-Step Guide for Employers and Employees

The minimum wage in Ohio is set to change on January 1, 2025. Whether you’re an employer, an employee, or someone considering moving to Ohio for work, it’s important to know exactly what these changes mean. This guide will walk you through every step you need to take to comply with the new minimum wage rules, avoid common mistakes, and make sure you’re getting or paying the right amount.

Ohio Minimum Wage 2025 Breakdown: Rates and Business Criteria

Introduction: Why Ohio’s Minimum Wage Matters

The minimum wage is the lowest amount an employer can legally pay their workers. In Ohio, this amount changes every year based on inflation, which helps workers keep up with the cost of living. The new rates for 2025 affect different groups of workers and businesses in different ways. Understanding these changes is important for:

Employers who need to update payroll and stay compliant with the law
Employees who want to make sure they’re being paid fairly
Immigrants and newcomers who are planning to work in Ohio and want to know what to expect

Let’s break down the steps you need to follow to make sure you’re following the law and protecting your rights.

Step 1: Identify Your Business Category and Worker Type

Before you can figure out which minimum wage applies, you need to know two things:

How much money does your business make in a year?
Are your workers tipped or non-tipped?
Are any of your workers 14 or 15 years old?

How to Determine Your Business Category

Large Businesses: If your business has annual gross receipts over $394,000, you must pay the higher Ohio minimum wage.
Small Businesses: If your business has annual gross receipts of $394,000 or less, you follow the federal minimum wage.

Worker Types

Non-tipped employees: Workers who do not regularly receive tips as part of their job.
Tipped employees: Workers who regularly receive tips, such as servers or bartenders.
Young workers (14- and 15-year-olds): Special rules apply, regardless of business size.

Time Estimate: 10-15 minutes to review your business’s annual gross receipts and employee records.

Step 2: Find the Correct Minimum Wage Rate

Once you know your business size and worker type, use the following breakdown to find the right minimum wage for each employee.

Minimum Wage Rates Effective January 1, 2025

Category	Minimum Wage (Jan 1, 2025)	Applies To
Non-tipped employees	$10.70 per hour	Businesses with gross receipts > $394,000
Tipped employees	$5.35 per hour	Businesses with gross receipts > $394,000
Employees at smaller businesses	$7.25 per hour	Businesses with gross receipts ≤ $394,000
14- and 15-year-old workers	$7.25 per hour	All employers

Important: Tipped employees must earn at least $10.70 per hour when you add their tips to their hourly wage. If their tips plus wages don’t reach this amount, the employer must make up the difference.

Time Estimate: 5 minutes to match each employee to the correct rate.

Step 3: Update Payroll Systems and Wage Statements

Now that you know the correct rates, you need to update your payroll system so that all employees are paid at least the new minimum wage starting January 1, 2025.

What to Do

Adjust hourly rates in your payroll software or manual records.
Check tipped employees’ total earnings (wages plus tips) to ensure they meet or exceed $10.70 per hour.
Review pay stubs to make sure the correct wage is listed for each employee.

Time Estimate: 30-60 minutes, depending on the size of your business and payroll system.

Step 4: Display the 2025 Minimum Wage Poster

Ohio law requires all employers to display the official minimum wage poster in a place where employees can easily see it, such as a break room or near the time clock.

How to Comply

Download the updated 2025 Minimum Wage poster from the Ohio Department of Commerce website.
Print and post the poster in a visible location at every worksite.
Check regularly to make sure the poster is not covered or removed.

Time Estimate: 10 minutes to download, print, and post.

Step 5: Train Managers and Supervisors

Make sure everyone in a position of authority understands the new minimum wage rules. This helps prevent mistakes and protects your business from legal trouble.

Training Checklist

Explain the new rates for all employee categories.
Review how to handle tipped employees’ pay.
Discuss the importance of accurate record-keeping.
Remind managers about posting requirements.

Time Estimate: 30-45 minutes for a group meeting or training session.

Step 6: Monitor Compliance and Keep Records

Employers must keep accurate records of hours worked and wages paid for at least three years. This is important if there’s ever a complaint or investigation.

Best Practices

Use time clocks or digital systems to track hours.
Keep copies of pay stubs and wage statements.
Review records regularly to catch any mistakes early.

Time Estimate: Ongoing; set aside time each pay period to review records.

Step 7: Know the Rules for Special Cases

Some situations require extra attention:

Tipped Employees

Wage plus tips must equal at least $10.70 per hour.
If tips are low, the employer must pay the difference.

Young Workers (14- and 15-year-olds)

Minimum wage is $7.25 per hour, no matter the size of the business.
Federal child labor laws also limit hours and types of work for these employees.

Small Businesses

If your business’s annual gross receipts are $394,000 or less, you pay the federal minimum wage of $7.25 per hour.

Changes in Business Size

If your business grows and passes the $394,000 threshold, you must start paying the higher Ohio minimum wage.

Time Estimate: Varies; review these rules whenever hiring new employees or if your business grows.

Step 8: Avoid Common Pitfalls

Many employers and employees make mistakes that can lead to fines or lost wages. Here are some common problems and how to avoid them:

For Employers

Not updating payroll on time: Make changes before January 1, 2025.
Forgetting to post the new wage poster: This is required by law.
Misclassifying employees: Make sure you know who is tipped, non-tipped, or a young worker.
Not making up the difference for tipped employees: Always check that tips plus wages meet the minimum.

For Employees

Not checking your pay stubs: Make sure you’re getting at least the minimum wage for your category.
Not reporting missing tips: If your tips are low, your employer must pay the difference.

Step 9: Troubleshooting and What to Do If There’s a Problem

If you discover a mistake or think the law isn’t being followed, take these steps:

For Employers

Correct payroll errors immediately.
Pay any back wages owed to employees.
Contact the Ohio Department of Commerce for guidance.

For Employees

Talk to your employer first about any problems.
Keep copies of pay stubs and records of hours worked.
File a complaint with the Ohio Department of Commerce, Division of Industrial Compliance, Bureau of Wage and Hour if the issue isn’t fixed.

Contact Information:
– Ohio Department of Commerce, Wage and Hour Bureau
– Phone: 614-644-2239

Step 10: Stay Informed About Future Changes

Ohio’s minimum wage changes every year on January 1, based on inflation. The amount is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The threshold for business size may also change.

How to Stay Up to Date

Check the Ohio Department of Commerce website every fall for the next year’s rates.
Sign up for email alerts from business or labor organizations.
Review payroll and compliance procedures each December.

Checklist Summary: Ohio Minimum Wage Compliance for 2025

Employers:

[ ] Determine your business’s annual gross receipts.
[ ] Identify each employee’s category (tipped, non-tipped, young worker).
[ ] Update payroll to reflect the correct minimum wage:
- $10.70/hour for non-tipped employees (large businesses)
- $5.35/hour for tipped employees (large businesses)
- $7.25/hour for small businesses and 14-15-year-olds
[ ] Ensure tipped employees’ total pay (wages + tips) is at least $10.70/hour.
[ ] Download and post the 2025 Minimum Wage poster.
[ ] Train managers and supervisors on the new rules.
[ ] Keep accurate records of hours and wages.
[ ] Monitor compliance and fix any mistakes quickly.

Employees:

[ ] Check your pay stubs to confirm you’re getting the right wage.
[ ] Report any missing tips or wage shortages to your employer.
[ ] Keep records of your hours and pay.
[ ] Contact the Ohio Department of Commerce if problems aren’t fixed.

Additional Resources and Official Links

For the most current and official information on Ohio’s minimum wage, visit the Ohio Department of Commerce Wage and Hour Division. Here, you can find the latest wage rates, download required posters, and get answers to common questions.

If you need legal advice or help with compliance, you can contact labor law firms such as Walter Haverfield. For example, Mark S. Fusco ([email protected], 216.619.7839) and Lorraine Catalusci ([email protected], 216.928.2928) are available for consultation.

Important Facts and Context

The minimum wage in Ohio increases every year on January 1, based on inflation.
The 2025 increase is a 2.4% rise from the previous year, reflecting moderate inflation.
The business size threshold for the higher wage is now $394,000 in annual gross receipts.
The federal minimum wage of $7.25 per hour has not changed since 2009 and only Congress and the President can change it.
Employers who do not follow minimum wage laws can face fines and legal action.

As reported by VisaVerge.com, these annual adjustments help protect workers’ buying power while giving businesses time to plan for changes. Labor advocates support the yearly increases, while business groups appreciate the predictable, moderate adjustments.

Final Takeaways and Next Steps

If you’re an employer in Ohio, review your business’s annual gross receipts and update your payroll systems before January 1, 2025. Make sure you’re paying at least the minimum wage for each employee category, and don’t forget to post the new wage poster. Train your managers and keep good records to avoid problems.

If you’re an employee, check your pay stubs and make sure you’re getting the right wage. If you have any concerns, talk to your employer or contact the Ohio Department of Commerce for help.

By following these steps, you can make sure you’re following the law and protecting your rights. Staying informed and prepared is the best way to avoid problems and ensure fair pay for everyone in Ohio.

For more information and updates, always refer to the Ohio Department of Commerce Wage and Hour Division, which provides the most up-to-date and official guidance on minimum wage laws in Ohio.

Learn Today

Minimum Wage → The lowest legal hourly pay employers must provide to employees under labor laws.
Tipped Employees → Workers who receive tips regularly, requiring special wage calculation rules.
Gross Receipts → Total annual revenue a business earns before expenses or deductions.
Payroll System → Software or process managing employee wages and deductions accurately.
Federal Minimum Wage → The minimum hourly wage set by the U.S. government, currently $7.25.

This Article in a Nutshell

Ohio’s 2025 minimum wage update sets $10.70/hr for large businesses non-tipped workers. Employers must follow payroll, post official posters, and train supervisors to ensure compliance and protect workers’ rights statewide.
— By VisaVerge.com