It’s that time of year again: Minimum Wage Increase.

Kegler Brown Labor + Employee Relations Newsletter

This is your friendly reminder that the minimum wage increase is upon us again. As we told you in October, the minimum wage in Ohio will change each year based on the Consumer Price Index, as is required by the 2006 Constitutional amendment. On January 1, 2008, the minimum wage for most Ohio employees becomes $7.00/hour. Make sure your payroll adjusts according to the new requirements. Remember that the increase in minimum wage also will affect overtime rates for minimum wage employees. In 2008, the overtime rate for employees making minimum wage will be $10.50/hour. The minimum wage for employees who meet the requirements to be classified as “tipped employees” also increases on January 1, 2008 to $3.50/hour.

The minimum wage increase affects all Ohio employees aged 16 or older who work for employers with gross revenues above $255,000.00 in 2007. For employees aged 14 or 15 and those employers with gross revenues below the $255,000.00 threshold, the federal minimum wage of $5.85/hour applies. Also, keep in mind that the federal minimum wage will increase in July to $6.55/hour.