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Ohio’s minimum wage is set to experience a boost in the coming year, as state officials announce an increase for both nontipped and tipped employees. Starting January 1, 2024, nontipped employees will see their hourly wage rise by 35 cents, going from $10.10 to $10.45. Meanwhile, workers who rely on tips will witness an increase from $5.05 to $5.25 per hour.

These adjustments apply to employees of businesses with annual gross receipts amounting to $385,000 or more. In comparison, the current federal minimum wage lags behind at $7.25 per hour.

The annual increase is mandated by Ohio’s Constitutional Amendment (II-34a), passed by voters in November 2006, which ties the state’s minimum wage to the rate of inflation. The adjustment is determined by the Consumer Price Index (CPI-W) for urban wage earners and clerical workers, measuring changes over the 12 months leading up to September. The most recent calculation indicates a 3.7% increase in the CPI-W from September 1, 2022, to August 31, 2023.

However, for employees of smaller companies with annual gross receipts of $385,000 or less after January 1, 2024, as well as for 14- and 15-year-olds, the state’s minimum wage remains at $7.25 per hour. This lower threshold is linked to the federal minimum wage and requires congressional action and the President’s signature to be altered.

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