When the Fair Labor Standards Act (FLSA) was enacted in 1938 the federal minimum wage was set at $.25 per hour. Since then the federal minimum wage has increased 28 times. The most recent increase, to $7.25 per hour, was in July 2009. Despite cumulative inflation of roughly 36% since then, the federal minimum wage has been stuck at that rate.
The federal minimum wage is a base rate. State and local governments can enact higher rates within their own jurisdictions. In 2006 Ohio citizens exercised their power of initiative to enact Article II, § 34a of the Ohio Constitution, which established a state minimum wage of $6.85 per hour. Critically, the Ohio law provides that the Ohio minimum wage is to be adjusted annually for inflation by reference to the Consumer Price Index. This occurs each September, with the corresponding increase effective the first day of the following January. As a result, on January 1, 2024, the Ohio minimum wage will increase to $10.45 per hour for non-tipped employees. The rate for tipped employees will increase to $5.25 per hour. These wage rates apply to employees of businesses with annual gross receipts of more than $385,000 per year. This threshold for coverage is also indexed to inflation.
Under both federal and state law there are a variety of exemptions from minimum wage coverage. An experienced wage and hour lawyer can advise employers and employees regarding those exemptions.
Unfortunately, many employers, willfully or not, fail to pay the Ohio minimum wage. Ohio law allows employees to sue for the amount of unpaid minimum wages plus liquidated damages in double the amount of the unpaid minimum wages, as well as attorney fees an court costs.
If you need to speak with an experienced wage and hour attorney, call Green Haines Sgambati Co., L.P.A.