Monday, July 27, 2009

Federal minimum wage increases, but does it matter to Ohio’s employers?

On July 24, the federal minimum wage rate increased to $7.25 per hour. However, as of January 1, 2009, Ohio’s minimum wage raised to $7.30 per hour. Thus, the new federal minimum wage has no effect except on the smallest of Ohio’s employers. Those businesses that gross less than $267,000 annually must comply with the $7.25 per hour rate. Ohio’s minimum wage will increase again on January 1, 2010 (and again on each January 1 thereafter) by the average rate of inflation for the prior September to September 12-month period.

Ohio is one of 14 states (including the District of Columbia) with a minimum wage higher than the federal mandate. Feel free to debate the effect of higher wage rates on business growth and development in the comments. The bottom line for most Ohio businesses is that the higher federal minimum wage simply does not matter.

Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus.

For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or