Ohio Minimum Wage Increases to $11.40 an Hour in 2027

Covered Workers Must Receive the Higher Rate Beginning January 1

Ohio's minimum wage rises to $11.40 an hour for non-tipped workers and $5.70 an hour for tipped workers on Jan. 1, 2027, according to the Ohio Department of Commerce. That's a 3.5% increase from the 2026 rates. But not every employer has to pay the new rate, and the rules on who's covered can be confusing.

Some employers will miss the increase entirely. Others will misapply the rules for tipped workers or count on employees not checking their paychecks closely. Those mistakes can cost a worker hundreds of dollars over the course of a year, and they often affect every hourly employee on the payroll.

Workers who are paid less than the law requires can recover what they're owed and more. An Ohio wage and hour lawyer can review pay records, figure out whether an employer is breaking the law, and pursue every dollar a worker is owed.

Why Ohio's Minimum Wage Goes Up Every Year

Ohio's minimum wage doesn't depend on lawmakers passing a new bill each year. In 2006, Ohio voters approved a constitutional amendment that ties the state's minimum wage to inflation. Every Jan. 1, the rate adjusts based on how much prices rose over the prior year, so workers' pay keeps up with the cost of living.

The 2027 increase is based on a measure called the Consumer Price Index for urban wage earners and clerical workers. It tracks how much everyday costs went up for working people, and the 2027 adjustment covers September 2025 through August 2026. That measure rose 3.5%, so the minimum wage rises by the same amount.

Employers are expected to update their payroll systems so the new rate kicks in on Jan. 1. They must also display the official 2027 minimum wage poster where employees can see it. Workers should check their first paycheck covering hours worked in January to make sure the new rate shows up.

Which Employers Have to Pay the $11.40 Rate?

Ohio's minimum wage applies to businesses with more than $419,000 in annual gross receipts, which is the total money a business brings in before expenses. That threshold rises from $405,000 in 2026. Most mid-size and large employers, including national chains, factories, hospitals, and warehouses, easily clear that line and must pay at least $11.40 an hour.

Smaller businesses at or below the $419,000 threshold can pay the federal minimum wage of $7.25 an hour. The same lower rate applies to workers who are 14 or 15 years old, no matter how large the business is. Those rates can only change if Congress raises the federal minimum wage.

Here's the problem for many workers: they have no way to see how much money their employer brings in. Some employers may claim to be under the threshold when they aren't, or treat several related businesses as separate companies to stay under it. An employment lawyer can dig into whether the higher Ohio rate applies.

Tipped Workers Face Extra Pay Risks Under the New Rate

Servers, bartenders, and other tipped workers face some of the most confusing pay rules in Ohio. Employers can pay a lower cash wage and count tips toward the rest, but only if they follow the rules closely. Tipped workers should watch for these issues:

• The $5.70 Cash Wage: Covered employers must pay at least $5.70 an hour in wages before tips starting Jan. 1, 2027.
• Making Up the Difference: If tips plus wages fall below $11.40 for any workweek, the employer must pay the gap.
• Tip Pools: Tip pools generally can't include managers or owners, and workers should know how the pool is divided.
• Managers Keeping Tips: Supervisors and owners can't take a share of the tips workers earn.
• Untipped Side Work: Time spent working a separate job that doesn't earn tips, like regular maintenance or cleaning shifts, may need to be paid at the full $11.40 rate.

Tip-credit violations often go unnoticed because tips vary so much from week to week. A slow stretch can leave a server earning less than the minimum without realizing it. A lawyer who handles claims for tipped employees can compare tip records against hours worked to see whether an employer owes back pay.

Common Ways Employers Shortchange Minimum Wage Workers

Not every minimum wage violation is as obvious as a lower hourly rate on a pay stub. Many employers cut pay in quieter ways that are easy to miss. Some of the most common problems include:

• Missing the Jan. 1 Update: Some employers keep paying the old $11 rate for weeks or months into the new year.
• Off-the-Clock Work: Workers may be asked to work before clocking in or after clocking out, which drags their real hourly pay below the minimum.
• Illegal Deductions: Charging workers for uniforms, tools, or cash register shortages can push pay below the minimum and may be an unlawful wage deduction.
• Misclassification: Calling a worker an independent contractor can let an employer avoid minimum wage rules, even when the worker is really an employee misclassified as a contractor.
• Rounding Time Down: Time clocks that always round in the employer's favor can chip away minutes from every shift.

A few dollars here and there may not seem like much. But small shortfalls add up quickly over months of paychecks, and they often affect many workers at the same company. That's why a pay problem one worker notices can turn out to be part of a much larger pattern that an employment lawyer can address.

How the Raise Affects Overtime Pay

The minimum wage increase also raises the floor for overtime. Ohio and federal law generally require employers to pay 1.5 times a worker's regular rate for every hour over 40 in a workweek. For a worker earning the new $11.40 minimum, that means at least $17.10 for each overtime hour.

Employers that don't update their payroll systems can underpay workers twice, once on regular hours and again on overtime. Even employers that update the base rate sometimes forget to adjust overtime calculations or leave out bonuses and shift differentials that should count toward the regular rate. Workers who suspect a problem should look into their rights to unpaid overtime.

Being paid a salary doesn't always mean a worker is exempt from overtime. Many employers label positions as salaried or "exempt" when the job duties and pay don't meet the legal requirements. A worker earning a modest salary for long hours may be owed significant overtime, and an employment lawyer can review whether the exemption really applies to salaried employees in that role.

What Ohio Workers Can Recover for Unpaid Minimum Wage

Ohio law takes minimum wage violations seriously. Under the minimum wage amendment to the Ohio Constitution, workers who are underpaid can recover their back wages plus an additional amount equal to two times those unpaid wages. That means a worker owed $1,000 could recover $3,000, along with attorney's fees and court costs.

There are deadlines to keep in mind. Minimum wage claims under the Ohio Constitution generally must be filed within three years of the violation. Waiting too long can mean losing the right to recover some or all of the money. Ohio law also gives workers the right to request their own pay and hours records from their employer.

Many workers worry that speaking up about pay will cost them their jobs. Ohio law protects employees who ask about their wages or file a complaint, and punishing them for it is illegal. Workers who face discipline, reduced hours, or firing after raising pay concerns may also have a claim for retaliation.

Steps to Take if Your Paycheck Doesn't Reflect the New Rate

Catching a pay problem early makes it easier to fix and easier to prove. Workers who think they're being shortchanged can take these steps to protect themselves:

• Check the First January Pay Stub: Make sure the hourly rate shows $11.40, or $5.70 for tipped workers, for hours worked in 2027.
• Keep a Personal Record of Hours: Write down start times, end times, breaks, and tips each day in a notebook or phone app.
• Save Schedules and Messages: Keep work schedules, texts, and emails about pay, hours, or tip practices.
• Request Pay Records in Writing: Ohio workers have the right to ask for records of their hours and pay.
• Don't Sign Away Your Rights: Avoid signing any agreement or release about back pay before talking to a lawyer.

Employers often have payroll staff and lawyers on their side when wage questions come up. Workers deserve the same kind of help. Talking to an employment lawyer early can preserve evidence, protect against retaliation, and make sure every dollar owed is accounted for before deadlines run out.

We Make Employers Take You Seriously

Ohio's 2027 minimum wage increase is supposed to put more money in workers' pockets. When employers ignore the new rate, misuse the tip credit, or find other ways to shave pay, workers can lose hundreds or thousands of dollars without realizing it. They deserve someone who knows how employers handle these issues from the inside.

Attorneys Brad and Angela Gibson spent years defending employers at one of the country's largest law firms before founding Gibson Law, LLC. Now they use that experience to stand up for Ohio workers. We focus solely on employment law, we've recovered $10 million for our clients, and we've been recognized by The Best Lawyers in America®.

With offices in Cincinnati and Dayton, we work directly with every client, and you'll never be passed off to someone else. We used to represent employers. Now we work for you. Request a free case assessment to find out whether your employer owes you unpaid wages.

"If there was a 100 out of 100 rating I would most definitely give it to Mrs. Angela Gibson and her law firm ! Angela and her team went above and beyond for my family and I with our lawsuit!" — Kay B., ⭐⭐⭐⭐⭐