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Ohio Minimum Wage Increase 2011


Posted by Tamara

Director of the Ohio Department of Commerce, Kimberly Zurz, reported that the Ohio minimum wage increased from $7.30 to $7.40 per hour on January 1, 2011. The Ohio minimum wage was unchanged from August 2009 to January 2011, remaining at $7.30 per hour for 17 months.

According to the Division of Industrial Compliance & Labor, however, not every employer is covered by the Ohio minimum wage increase. Those companies who earn less than $270,000 in 2011 can pay workers just $7.25 per hour. In addition, Ohio employers are legally permitted to pay young workers (age 14 or 15) $7.25 per hour. These rates are tied to the federal minimum wage and have not changed since July of 2008.are unchanged since July 2008.

The minimum wage for tipped employees in Ohio will increase, too. Their minimum will rise from $3.65 to $3.70 per hour. These employees are entitled to at least $7.40 per hour from wages and tips combined. If an employee does not average $7.40 per hour during the payroll week, the employer must make up the difference.

The Ohio minimum wage law excludes certain occupations, including those with the federal government. Babysitters who work in a client’s home are exempt, as are live-in companions for a sick or elderly person. Employees of a daycare center are not exempt, neither are care givers who also perform housekeeping duties.

Ohio laws require employers to pay employees overtime when they work more than 40 hours in a payroll week. This rate is calculated at 1.5 times the worker’s usual hourly rate. Under a special provision of the minimum wage law, employers can hospital and nursing home employees overtime after 80 hours in a two-week payroll period, but only if they are also paid overtime after 8 hours per day.

The exception to both Ohio state and federal overtime rules involves employers whose annual earnings are less than $150,000. Employers in this category must pay their employees the regular hourly rate for all hours worked.

 

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