Tuesday, January 3, 2012

Ohio’s Minimum Wage Increases for 2012

On Sunday, Ohio’s minimum wage (for non-tipped employees) increased to $7.70 per hour – which is more than the federal minimum wage of $7.25/hour. As described by the Ohio Department of Commerce:



“Non-Tipped Employees” includes any employee who does not engage in an occupation in which he/she customarily and regularly receives more than thirty dollars ($30.00) per month in tips from patrons or others.
“Employers” who gross under $283,000.00 shall pay their employees no less than the current Federal Minimum wage rate.
“Employees” under the age of 16 shall be paid no less than the current federal minimum wage rate.
“Current Federal Minimum Wage” is $7.25 per hour.



Tipped employees are entitled to $3.85/hour plus tips. According to the DOC:




“Tipped Employees” includes any employee who engages in an occupation in which he/she customarily and regularly receives more than thirty dollars ($30.00) per month in tips from patrons or others. The tips are proven if indicated by the employee’s declaration for the purposes of the federal insurance contribution act. Including when tips are added to the employee’s wage, his/her hourly pay cannot be less than the regular minimum wage of $7.70 prescribed by law.
Other employees who are exempt from Ohio’s minimum wage include the following:


1. Any individual employed by the United States;
2. Any individual employed as a baby-sitter in the employer’s home, or a live-in companion to a sick, convalescing, or elderly person whose principal duties do not include housekeeping;
3. Any individual employed as an outside salesman compensated by commissions or in a bona fide executive, administrative, or professional capacity, or computer professionals;
4. Any individual who volunteers to perform services for a public agency which is a State, a political subdivision of a State, or an interstate government agency, if
(i) the individual receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform the services for which the individual volunteered; and
(ii) such services are not the same type of services which the individual is employed to perform for such public agency;
5. Any individual who works or provides personal services of a charitable nature in a hospital or health institution for which compensation is not sought or contemplated;
6. Any individual in the employ of a camp or recreational area for children under eighteen years of age and owned and operated by a non-profit organization or group of organizations.
7. Employees of a solely family owned and operated business who are family members of an owner.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney