New Year, New Minimum Wage

January 07, 2013  |   Posted by :   |   YPHR Blog

Many states have increased their minimum wage effective January 1st, and Ohio is one of them. Ohio’s minimum wage is tied to inflation and is adjusted every January 1st based on the inflation rate (as determined by the Consumer Price Index (CPI)).  Between September 1, 2011 and August 31, 2012, the CPI increased by 1.7%.

So what does this mean for you? For 2013, the state minimum wage for non-tipped employees has increased to $7.85 per hour (up from $7.70) and to $3.93 per hour for tipped employees, plus tips (up from $3.85).  This increase applies to employees of any business with annual gross receipts of more than $288,000 per year (up from $283,000).

For smaller companies and employees who are 14- or 15-years-old, the rules are different. If your company’s gross receipts were for $283,000 or less in 2012, or $288,000 or less after January 1, 2013, the minimum wage is $7.25 per hour.  This wage also applies to 14- and 15-year-old employees.  For these employees, the state wage is tied to the federal minimum wage of $7.25 per hour which requires an act of Congress and the President’s signature to change.

Click here for a free printable 2013 Ohio Minimum Wage poster. Click on the states below for details on the other 9 states that increased their minimum wages as of January 1st. Need help to be sure you are compliant with this and all employment laws?  Contact Your Partner in HR!

  1. Arizona
  2. Colorado
  3. Florida
  4. Missouri
  5. Montana
  6. Oregon
  7. Rhode Island
  8. Vermont
  9. Washington

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