Effective January 1, 2013, the new minimum wage in Ohio rose 15 cents to $7.85 per hour. The minimum hourly wage for non-tipped employees is linked to inflation under a state constitutional amendment Ohio voters approved in 2006. The minimum wage uses the Consumer Price Index to adjust for inflation, as tracked from August to August every 12 months. Ohio was one of 10 states that raised its minimum wage at the start of the new year between 10 and 35 cents, modestly boosting the incomes of nearly 1 million low-paid workers. 

The non-partisan National Employment Law Project indicated the increase will put an extra $190 to $510 per year into the pocket of the average minimum-wage worker, according to a study released last month.

Nine other states (Arizona, Colorado, Florida, Missouri, Montana, Oregon, Rhode Island, Vermont and Washington) also increased their state minimum wages.

For business owners, the increased wages mean an increase in payroll, but also serve as a reminder that compliance with minimum wage laws is necessary.  The beginning of the year provides an opportunity for employers to review their minimum wage and overtime policies with legal counsel to ensure compliance.

By: Justin A. Morocco