Ohio minimum wage to increase Jan. 1

By J.D. Davidson
The Center Square

Ohioans working for minimum wage will get another Christmas present in a week.

The state’s minimum wage rises by 25 cents on Jan. 1, going to $10.70 an hour to account for inflation. The current Ohio minimum wage for tipped employees is $5.25 per hour and $10.45 for nontipped workers. The minimum wage for youth workers is $7.25 per hour.

“Ohio voters are to thank for next month’s increase in the minimum wage," Policy Matters Ohio Economist Heather Smith said. "Voters enshrined adjustments for inflation to the minimum wage law in 2006, when they voted overwhelmingly to raise the state minimum wage. Over 28% of Ohio families with incomes below the federal poverty level will get some relief from rising prices as a result."

The Economic Policy Institute estimates about 112,700 Ohioans paid less than $10.70 will see a direct wage increase Jan. 1, and another 206,000 making just above the minimum will also see an increase when employers adjust pay scales.

A proposed constitutional amendment that would raise the state’s minimum wage to $15 per hour plus tips by 2026 failed to reach the required number of signatures to reach the ballot earlier this year.

As previously reported by The Center Square, the Ohio Chamber of Commerce opposed the proposed amendment, saying it would hurt small businesses that continue to struggle.

“The proposed minimum wage amendment to the Ohio Constitution is not only ill-advised and economically detrimental, it would be next to impossible to correct once the unintended consequences transpire,” Chamber CEO Steve Stivers said, including the potential for layoffs and reduced hours for workers.