| EFFECTIVE DATE | OHIO MINIMUM WAGE |
| January 1, 2023 | $10.10 |
| January 1, 2024 | $10.45 |
| January 1, 2025 | $10.70 |
| January 1, 2026 | $11.00 |
| January 1, 2027 | TBD |
Looking for minimum wage rates by state? Click here to view the minimum wage chart by state.
According to regulations from the Fair Labor Standards Act, “Tipped employees” are classified as workers regularly making over $30 a month in tips.
While tipped employees have the right to make the state's minimum wage, employers only have to pay employees at least $5.50 per hour, half of Ohio's standard minimum wage rate, as long as the employee makes a minimum of $11.00 per hour in tips for all hours worked. This is known as a tip credit for the amount earned in tips.
To make up the difference in pay, if an employee makes less than $5.50 per hour in tips in a given work week, the employer must make the employee’s earnings equal to $11.00 per hour for the work week.
Each year, Ohio's tipped minimum wage is adjusted in line with the standard minimum wage, as the tipped rate is set at one-half of the standard rate.
Under the ORC, all employees, including tipped employees, working over 40 hours per week must be paid one-half times their regular rate of pay in overtime.
Signed by President Trump on July 4, 2025, the One Big Beautiful Bill Act allows applicable employees, including those self-employed, to claim a tax reduction on qualified tips received from his or her occupation. The tip tax deduction is effective from January 1, 2025 through December 31, 2028.
The occupation must be listed by the IRS as “customarily and regularly” receiving tips and must be reported on a Form W-2 or other applicable statements that report qualified tips (ex: Form 4137 for tips not reported to the employer).
An employee can deduct an annual maximum amount of $25,000. For self-employed individuals, the deduction amount cannot exceed his or her net income from the trade or business where the tips were earned. If an employee’s modified adjusted gross income (MAGI) exceeds $150,000, or $300,000 for employees filing taxes jointly, the amount allowed to be deducted will be reduced by $100 for each $1,000 earned above the MAGI.
To be eligible for the tip tax deduction, employees must include a Social Security number on the tax return for the given tax year. If married, the employee must also file jointly to remain eligible. Even if individuals opt for a standard deduction (vs. itemized deductions) on a tax return, the individual is still eligible for the annual maximum deduction for overtime.
Note that self-employed individuals categorized in a Specific Trade or Business (SSTB) under section 199A are NOT eligible.
All employers must file information returns to the IRS or Social Security Administration (SSA), as well as deliver the applicable forms, including a W-2, to employees that show the cash tips received and the occupation of the tip recipient.
Unique to Ohio, under the ORC, businesses with a certain number of annual gross receipts for a given calendar year are allowed to compensate employees with a minimum wage rate below the state's rate, but no lower than the federal minimum wage ($7.25 per hour).
For 2026, the Ohio minimum wage rules must apply to employers with annual gross receipts of more than $405,000. Otherwise, employers may pay employees as low as the federal minimum wage if desired.
Under ORC Chapter 4109, minor employees between the 14 and 15 years of age may be paid a subminimum wage of no less than the federal minimum wage rate. Additionally, all minor employees must agree with the employer on the wages he or she shall receive for each day, week, month, year, or per piece for work performed.
Similar to other states, Ohio allows employers to pay a subminimum wage for disabled workers.
Ohio employers may pay a subminimum wage to disabled workers if the business obtains one of the following special licenses through the Ohio Department of Commerce (ODOC):
Note that after an employer has approval from the ODOC to pay disabled workers a subminimum wage, the minimum wage rate must still reflect the actual work output (type, quality, and quantity) of the disabled worker.
Outside of special minimum wage exceptions, workers exempt from the state's minimum wage include any employee exempt under FLSA classification.
Generally, these exemptions include:
Additionally, Ohio has unique exceptions (with some federal overlap) to the minimum wage for the following individuals:
Ohio does not require employers to give specific meal or rest breaks to employees 18 years of age or older. However, employers that offer employees breaks must adhere to the specific guidelines set forth by the FLSA regarding meal and rest breaks.
Businesses must post a summary of ORC Chapter 4111 in an easily accessible and visible place. This can easily be managed through an all-in-one Ohio Labor Law Poster to cover all the required state and federal labor law postings.
Note that each time the minimum wage is updated, the labor law poster must be replaced in the workplace. A labor law poster subscription service will automatically provide updated mandatory notices that need to be posted for employees as additional changes take place with state or local laws.
Pursuant to the ORC, violations of Ohio wage and hour laws may result in the following criminal offenses, depending on the provision violated:
Employers may be subject to the following penalties for the resulting offenses:
Businesses struggling to maintain minimum wage compliance or manage payroll may want to consider outsourcing payroll to a Ohio Payroll Provider. Areas for additional knowledge and learning include the basics of payroll and what to know about modern payroll software.
To learn more about how Employer Pass is helping countless businesses maintain minimum wage compliance, contact us today or use the find a provider tool.