State minimum wage increases

COLUMBUS — Ohio's minimum wage increased at the start of the new year, raising hourly pay for workers across the state as of Jan. 1. Starting on New Year's Day, non-tipped employees began earning a minimum of $11 per hour, while tipped employees now earn $5.50 per hour. The increase represents a 2.8% rise from the current 2025 rates of $10.70 for non-tipped workers and $5.35 for tipped workers, according to the Ohio Department of Commerce. Ohio's minimum wage increases each year under a constitutional amendment approved by voters in 2006. The amendment requires the wage to be adjusted annually based on inflation, rather than through legislative action. The increase is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers, also known as CPI-W. This index tracks changes in the cost of goods and services typically purchased by working households. The 2.8% adjustment is based on inflation measured from Sept. 1, 2024, through Aug. 31, 2025. State officials use this data to determine the new minimum wage rate each year. The system is designed to help low-wage workers keep pace with rising costs such as food, housing and other everyday expenses, according to the department. The wage increase also affects which businesses must comply with Ohio's minimum wage law. Beginning Jan. 1, 2026, the state minimum wage will apply to businesses with annual gross receipts of more than $405,000, an increase from the current threshold of $394,000. Employees who work for businesses with annual gross receipts of $405,000 or less will continue to be paid the federal minimum wage of $7.25 per hour. The same federal rate also applies to workers who are 14 or 15 years old. Any change to the federal minimum wage would require approval by the U.S. Congress and the U.S. President. Ohio's minimum wage has increased steadily since the 2006 amendment took effect. The first inflation-based increase occurred in 2007, when the minimum wage rose to $6.85 per hour. Over time, the rate climbed gradually, surpassing $8 per hour in the mid-2010s according to data from the U.S. Department of Labor. In recent years, higher inflation has resulted in larger increases. The minimum wage rose to $10.10 per hour in 2023, followed by increases to $10.45 in 2024 and $10.70 in 2025. The scheduled increase to $11 per hour in 2026 continues that trend. Employers covered by Ohio's minimum wage law are required to post information about the new rate in a place easily accessible to employees. The poster is available for download through the Division of Industrial Compliance, which enforces wage and hour laws across the state.