As of January 1, 2026, the Ohio minimum wage is $11 per hour for non-tipped employees and $5.50 per hour for tipped employees, with exceptions for small businesses and youth workers. The Ohio state constitution mandates annual adjustments to the state’s minimum wage to keep pace with inflation.
What you’ll learn
What you’ll learn
Key takeaways
- The minimum wage of Ohio is currently $11 per hour for non-tipped employees and $5.50 per hour for tipped employees. The state’s minimum wage exceeds the $7.25 per hour federal minimum wage
- The pay rate in Ohio adjusts annually on January 1 based on inflation and the Consumer Price Index (CPI)
- Businesses are responsible for updating payroll when the Ohio minimum wage adjusts
- Automated payroll software can help businesses of all sizes remain in compliance with state and federal employment laws and rate adjustments
While the federal minimum wage remains $7.25 per hour, workers in the Buckeye State enjoyed a 2.8 percent minimum wage increase in Ohio in 2026. This comprehensive guide to Ohio wage rates covers the state minimum wage, labor standards, payroll compliance, and practical guidance for employers in the state of Ohio.
Current Ohio minimum wage rates for 2026
The minimum wage for the state of Ohio was rose on January 1, 2026. The annual adjustment is based on the federal Consumer Price Index (CPI), which measures the average change over time in the prices paid by urban consumers for goods and services. State minimum wage rates vary significantly across the country, starting at $7.25 and reaching over $16 in a handful of states and larger cities.
Non-tipped employee rate
Most workers now earn a minimum wage rate of $11 per hour in Ohio. This represents nearly a 3 percent increase from 2025, when the statewide minimum wage was $10.70 for non-tipped employees. The non-tipped employee rate will adjust again on January 1, 2027, if there are any changes in the Consumer Price Index.
Tipped employee rate
The minimum wage standard for tipped employees in Ohio is now $5.50 per hour. This includes any employee who regularly receives more than $30 per month in tips. If your tipped employees do not earn $11 per hour with standard pay and tips, then you must make up the difference so that they reach the full minimum wage.
How does this work?
For instance, if one of your servers earns $5.50 per hour plus $4 in tips, you would be required to pay an additional $1.50 to reach $11 per hour. This is known as the tip credit, allowing tips to satisfy part of your minimum wage pay requirement. Automated payroll software can streamline ongoing payroll for tipped and non-tipped employees alike.
| Category | Hourly rate | Details |
| Non-tipped employees | $11 | Standard rate for most workers |
| Tipped employees | $5.50 | Must reach $11 per hour including tips |
| Small businesses | $7.25 | Gross receipts under $405,000 |
| Youth workers | $7.25 | Employees under age 16 |
Who is covered by the Ohio minimum wage?
The current wage covers most employees in Ohio, with a few notable exceptions as follows:
- Businesses with annual gross receipts of less than $405,000 can pay the lower federal minimum wage of $7.25 per hour, rather than $11 per hour
- If you have workers under 16, you can pay them the federal minimum wage of $7.25 per hour until their 16th birthday
- If your business is solely family-owned and -operated, you are not required to pay the Ohio minimum wage to your family members
- Other exceptions include payments for babysitters and live-in companions, outside salespeople, volunteers, and those who work at a camp or recreational areas owned by a nonprofit that serves kids under the age of 18
- Your business must also provide non-salary workers overtime pay of time and a half for hours worked beyond 40 in accordance with the Fair Labor Standards Act (FLSA), unless your business grosses less than $150,000 per year
Otherwise, your business must pay the higher state minimum wage rate with the aim of providing a living wage for every Ohio worker.
What is a livable wage in Ohio?
For one adult with no children, a living wage is considered to be $21.00 per hour. For two adults, one working, with two children, it is $37.82 per hour. And for two adults who both work and have three children, a living wage in Ohio is $32.05 per hour. Urban wage earners typically need to earn more than their rural counterparts due to the higher cost of living in larger cities.
How employers can stay compliant with the Ohio minimum wage
Here are helpful tips to stay compliant with ongoing changes in Ohio’s minimum wage rates:
- Update payroll wage tables as soon as the minimum wage rates adjust at the beginning of the year to avoid underpayment or missed payments
- Display the state’s 2026 minimum wage poster in a prominent location in your business
- Maintain accurate payroll and tax records to comply with the state’s Pay Stub Protection Act which says you need to keep employee payroll records for a minimum of three years
- Perform regular payroll audits to make sure your systems are in top order
- Stay on top of both federal and state payroll updates to support compliance, payroll accuracy, and team-wide communication and if you have specific employment-related regulations, consult a business attorney
Payroll compliance and software considerations
While payroll can be complex with changing wage rates and multiple worker categories and locations, payroll systems can help apply the correct pay rates, track tipped employee wages, and make sure that Consumer Price Index-based annual adjustments are implemented correctly. All of this will keep your business in line with state and federal labor standards and regulations.
In addition, OnPay’s Ohio hourly paycheck calculator makes it easy to get payroll right the first time. If your business is not already using payroll software, you can schedule a demo to learn more about how automated software can support your business and team members.
Enforcement timelines require Ohio businesses to pay employees at least bimonthly. When you remain compliant with Ohio minimum wages, you can avoid potential fines and penalties as well as drive employee satisfaction and longevity.
Employers should have an overview of Ohio’s minimum wage
To get and stay compliant with Ohio minimum wage regulations, your business can turn to payroll software and systems to organize and streamline payroll and tax filings. You can pay both employees and contractors in a few clicks, and handle your payroll and taxes with more confidence. Get started today with smart payroll for small businesses.
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Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.