The federal Fair Labor Standards Act (commonly referred to as the FLSA) generally requires employers to pay its employees a minimum wage.  Currently, the federal minimum wage is $6.55 per hour.  The federal minimum wage will increase to $7.25 per hour on July 24, 2009.  The FLSA permits states to require employers to pay a higher minimum wage.  On November 7, 2006, Ohio voters approved an amendment to the Ohio Constitution that increases the state’s minimum wage and imposes related record-keeping and record-disclosure requirements on employers. The Constitution requires that the minimum wage automatically increase annually by the rate of inflation each January 1, rounded to the nearest five cents. Currently, the Ohio minimum wage, with some exceptions noted below, is $7.30 per hour.

Under the Ohio Constitution, employees of businesses with annual gross receipts of $267,000 or less must be paid at least the federal minimum wage.  The $267,000 gross revenue figure automatically increases annually by the rate of inflation each January 1st, and rounded to the nearest one thousand dollars.

Employees under the age of 16 must be paid at least the federal minimum wage.  Therefore, on and after July 24, 2009, employees under the age of 16 must be paid at least $7.25 per hour.

On and after July 24, 2009, tipped employees may be paid at least half the applicable minimum wage (either $3.65/hour hour or $3.63/hour for businesses grossing $267,000 or less) so long as the combination of tips and paid wages equal or exceed the applicable minimum wage (either $7.30 or $7.25 per hour).

If you have any questions, please feel free to contact Gordon Gough at (614) 221-7833.