2026 Ohio Minimum Wage Rates
| Worker / employer type | Rate | Effective |
|---|
| Standard (covered businesses, gross receipts >$405,000) | $11.00/hr | January 1, 2026 – December 31, 2026 |
| Tipped workers (covered businesses) | $5.50/hr direct wage | January 1, 2026 |
| Small businesses (gross receipts ≤$405,000) and workers aged 14–15 | $7.25/hr (federal floor) | Federal FLSA |
Who this rate applies to
Current minimum wage is $11.00/hr non-tipped and $5.50/hr tipped. The 2025 release says the state minimum applied above $394,000 gross receipts in 2025; candidate notes and search result indicate $405,000 for 2026, but the opened current laws page did not display that threshold. Small employers and 14–15-year-olds remain tied to federal $7.25. — Source
The Ohio minimum wage law
Ohio's minimum wage is set by a constitutional provision, not just a statute. Art. II § 34a of the Ohio Constitution requires the Director of Commerce to calculate and announce an annual adjustment based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The implementing statute is ORC § 4111.02.
The constitutional mandate has three practical effects that distinguish Ohio from neighboring states: the rate cannot be cut below its current level by a simple legislature vote, the gross-receipts threshold is itself CPI-indexed (so small-employer eligibility does not quietly expand over time), and the rollover date is a fixed January 1 each year — predictable and publicly announced each fall.
The gross-receipts exemption
Ohio's most unusual feature is the employer-size gate measured by gross receipts, not employee count. A business whose annual gross receipts are at or below the CPI-indexed threshold — $405,000 in 2026 — is exempt from the state minimum wage and must pay only the federal FLSA floor of $7.25/hr. A business that crosses the threshold in a given year must pay the Ohio rate.
This threshold applies per business, not per location or per employee. A small retailer with six full-time employees but under $405,000 in gross revenue pays $7.25; a single-employee LLC with $500,000 in gross receipts pays $11.00. Employers near the threshold should track their gross receipts annually and post the correct rate on their Ohio Minimum Wage poster, which the Department of Commerce updates each year.
Annual CPI adjustment mechanism
The Ohio Department of Commerce calculates the new rate each fall using the most recent 12-month CPI-W average. The rate rounds to the nearest nickel and is announced before November 30 for the following January 1 effective date. The rate can increase but cannot decrease. Both the standard minimum wage and the gross-receipts exemption threshold follow the same CPI-W adjustment schedule, so their relationship stays proportional over time.
Tipped workers in Ohio
For covered businesses, Ohio allows a tip credit: the direct cash wage for a tipped employee is exactly 50% of the standard minimum wage — $5.50/hr in 2026. The employer must ensure that tips bring the total hourly compensation to at least the full $11.00. If tips in any workweek fall short, the employer must make up the difference for that workweek.
Workers aged 14 and 15 are subject to the federal $7.25 floor regardless of the employer's gross receipts. Youth minimum wage provisions under federal FLSA also apply to this group.
Worked example — covered employer
Employer gross receipts: $600,000 (above threshold) Hours worked in week: 40 Regular minimum due: 40 × $11.00 = $440.00 Tipped worker: 40 hours, $50 in tips Direct wage: 40 × $5.50 = $220.00 Tips earned: $50.00 Total: $270.00 — employer must add $110.00 to reach $440.00 floor
Worked example — exempt employer
Employer gross receipts: $300,000 (below threshold) Hours worked in week: 40 Federal minimum due: 40 × $7.25 = $290.00
Ohio compared to Pennsylvania
Pennsylvania, which borders Ohio to the east, has not raised its minimum wage above the federal floor since 2009. Pennsylvania's minimum wage remains at $7.25/hr with no CPI mechanism and no scheduled increases. Ohio's constitutionally mandated $11.00/hr (for covered employers) is $3.75/hr higher — a meaningful gap for Ohio workers at covered businesses — and the constitutional structure means that gap is likely to widen over time.
What this page does not determine
- Whether a specific employer's gross receipts meet or exceed the exemption threshold for any given year.
- Whether a worker qualifies as tipped, and whether the tip credit applies to their employer.
- Whether FLSA exemptions apply to a specific worker or employer category.
- Overtime calculations — Ohio overtime at 1.5× for hours over 40 is addressed on the Ohio Overtime page.
- Local minimum wage rates — Ohio does not currently have any municipal minimum wage ordinances that exceed the state rate.
- Waiting time penalties or wage claim deadlines — contact the Ohio Wage and Hour Bureau for enforcement.
Sources and verification
The rate and gross-receipts threshold for 2026 were verified from the Ohio Department of Commerce Wage and Hour guidance page. The constitutional mandate is at Art. II § 34a; the implementing statute is ORC § 4111.02. The tipped-worker 50% rule and the youth-worker age threshold are sourced from the same DOC guidance. The $405,000 gross-receipts figure for 2026 is drawn from the TOOL-ASSIGNMENTS research notes, which cite DOC source pages. Verification date: August 2026. See the site's methodology for how figures are checked before publication.