Ohio’s minimum wage rose on January 1 to 10.70 an hour for most workers and 5.35 for tipped employees, according to the Ohio Department of Commerce. The change applies to businesses with annual gross receipts over 394,000 dollars. Smaller businesses and 14- and 15-year-olds remain under the federal minimum wage of 7.25 an hour.
The increase follows a 2006 constitutional amendment approved by Ohio voters that requires the state to raise the wage each year based on inflation. State officials use the Consumer Price Index to calculate the annual adjustment.
“Employers are responsible for making sure their payroll reflects the new rates,” the Department of Commerce said in a release. The agency oversees enforcement and can order back pay or penalties against businesses that fail to comply.
Even with the raise, Ohio trails more than half the country. Neighboring Michigan’s wage is 10.33, while Pennsylvania, Indiana, and Kentucky remain at the federal minimum. At the high end, Washington state’s rate is 16.66 in 2025, according to the U.S. Department of Labor.
The change will affect tens of thousands of Ohio workers, especially in food service, retail, and hospitality, where hourly pay is often lowest. A report by Policy Matters Ohio estimated about 112,000 Ohioans earned less than 10.70 before the increase. For tipped workers, state law requires employers to ensure that wages plus tips equal the full minimum rate.
Lawmakers have also proposed raising the Ohio minimum wage further. A bill introduced by Senate Democrats would lift the rate to 12 dollars in 2026 and increase it gradually to 15 dollars by 2029, while eliminating the lower tipped wage altogether. That proposal has not advanced.