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The Ohio Department of Commerce Division of Industrial Compliance's Bureau of Wage and Hour Administration announced this week that the state's minimum wage will increase on Jan. 1.
The adjusted amounts, $11.40 per hour for nontipped employees and $5.70 per hour for tipped employees, represents a 3.5% increase from the current 2026 rates of $11 for nontipped employees and $5.50 for tipped employees.
The change reflects the mandate of the Constitutional amendment, passed by Ohio voters in November 2006, which states Ohio's minimum wage shall increase on Jan. 1 each year by the rate of inflation.
The minimum wage standard is tied to the Consumer Price Index for urban wage earners and clerical workers for the 12-month period ending in August. The 3.5% increase corresponds to the CPI-W change from Sept. 1, 2025, to Aug. 31, 2026.
In addition to the wage rate adjustment, the threshold for business applicability also will change. Effective Jan. 1, the Ohio minimum wage will apply to businesses with annual gross receipts of more than $420,000, which is an increase from the current $405,000 threshold.
For employees at businesses with annual gross receipts of $420,000 or less per year after Jan. 1, and for 14- and 15-year-old workers, the state minimum wage remains tied to the federal minimum wage of $7.25 per hour. Any changes to this rate would require the president’s signature.