More money for minimum wage workers - 19 Action News|Cleveland, OH|News, Weather, Sports

More money for minimum wage workers

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CLEVELAND, OH (WOIO) -

Ohio's minimum wage increases on January 1, 2013 to $7.85 per hour for non-tipped employees and to $3.93 per hour for tipped employees, plus tips. 

The 2012 Ohio minimum wage is $7.70 per hour for non-tipped employees and $3.85 for tipped employees, plus tips.

On January 1, 2013, the increased minimum wage will apply to employees of businesses with annual gross receipts of more than $288,000 per year. The 2012 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $283,000 per year.

 The Constitutional Amendment passed by Ohio voters in November 2006 states that Ohio's minimum wage shall increase on January 1 of each year by the rate of inflation. The state minimum wage is tied to the Consumer Price Index (CPI) for urban wage earners and clerical workers for the 12-month period prior to September.

This CPI index rose 1.7 percent from September 1, 2011 to August 31, 2012. The Amendment also states that the wage rate for non-tipped employees shall be rounded to the nearest five cents.

For employees at smaller companies (with annual gross receipts of $283,000 or less per year in 2012 or $288,000 or less per year after January 1, 2013) and for 14- and 15-year-olds, the state minimum wage is $7.25 per hour. For these employees, the state wage is tied to the federal minimum wage of $7.25 per hour which requires an act of Congress and the President's signature to change.

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