Minimum wage laws are constantly changing, and with millions of people working at minimum wage, it is important for employees to know how much compensation they are entitled to. Here is everything you need to know about minimum wage laws in Ohio.
What is Ohio’s Statewide Minimum Wage?
There is a federal minimum wage of $7.25 per hour. However, since prices and the average cost of living varies significantly between states and counties, relevant minimum wages depending on where the employee lives. In Ohio, the statewide minimum wage is $9.30 per hour. The minimum wage is denominated in hourly, weekly, and yearly wages.
The hourly wage is $9.30 per hour as mentioned previously, the weekly wage is $372 per week, and the yearly minimum wage is $19,344 per year.
These wages are the same, simply denoted in different units of account. This means that for a 40-hour work week in which employees make $9.30 per hour, they would make $372.
Who is Exempt from Minimum Wage Laws?
Ohio civic codes prohibit employers from paying or agreeing to pay employees less than the minimum wage. While most workers in Ohio are entitled to the minimum wage, there are a few exceptions in which workers may be paid less than the statewide minimum wage:
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Minors
Federal law and Ohio civic codes permit employers to pay new employees who are under 20 years old a “training wage” of $4.25 per hour for the first 90 days of employment.
Related: California Minimum Wage Laws: What You Need to Know
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Students
Students in Ohio are entitled to a lower minimum wage so long as they are full-time students working in part-time positions. High school or college students may be paid as low as 85% of the state’s minimum wage, or $7.91 per hour, for up to 20 hours per week at specific employers such as work-study programs at universities.
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Apprentices
The Ohio Department of Education defines apprenticeships as programs that are a “combination of on-the-job training and related technical instruction.” Individuals may qualify as apprentices if they are 16 years of age or older and if the program is registered with The Ohio Apprenticeship Council to teach a skilled occupation pursuant to the aforementioned registered apprenticeship agreement.
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Outside Salespeople
Outside salespeople are individuals who work outside of their business for commissions on services, products, etc. Outside salespeople are legal adults who spend more than half of their time working outside of the employer’s business selling items or are responsible for getting contracts for services, products, or facilities. Individuals who do not meet the above requirements do not qualify for the outside salesperson exemption and must be paid minimum wage.
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Family Members
Individuals who are part of a family-owned and operated business can exempt family members who work for the business from the minimum wage, paying family members as little as nothing for their work.
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Tipped employees
Federal law permits employees eligible for tips to earn less than the minimum wage. If an employee earns at least thirty dollars ($30) in tips every month, an employer may subtract the sum of those tips from the employee’s wage such that the employee’s hourly wage including tips is at least $9.30 per hour.
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Individuals with Disabilities
Individuals with disabilities may be permitted to work for below the state minimum wage in cases where an individual’s “earning capacity is impaired by physical or mental deficiencies or injuries.” Employers must first obtain a license pursuant to Ohio Civic Code every year to continue paying an employee with disabilities below the minimum wage.
Related: How to File a Wage Claim in Ohio
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Nonprofit Recreational Professions
Individuals employed by recreational camps or areas for children under 18, which non-profit organizations or groups of organizations own, may be exempt from being paid the state-wide minimum wage.
Minimum Wage for Ohio’s Counties
In many states, counties and cities may have different minimum wages depending on local costs of living. In Ohio, cities and counties may not be permitted to have a local minimum wage which is different from the state minimum wage. According to Ohio Municipality Wage Laws, Ohio forbids municipalities within its borders from raising the minimum wage or enacting any minimum wage law at a rate different from the primary state rate.
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If you or a loved one would like to learn more about Minimum Wage Laws Ohio, get your free consultation with one of our Employment Attorneys in Ohio today!