The Minimum Wage Increase in Ohio
Ohio voters in 2006 approved a constitutional amendment that indexed the legally mandated base pay to inflation. Since then, those paid minimum wage have seen their purchasing power erode.
Employees in bona fide executive, administrative, professional and outside sales roles and babysitters and live-in companions are exempt from Ohio’s minimum wage laws.
The minimum wage increase in Ohio is the result of a constitutional amendment passed by voters in 2006. This system will automatically adjust the state’s minimum wage each year to keep pace with inflation. It is important to stay informed about these changes so that you can prepare your business accordingly. This includes educating yourself on legal requirements such as food safety regulations and labor laws specific to the hospitality industry.
A $15 minimum wage will lift wages for 336,000 Ohio workers living below the poverty level. These families deserve to have their hard-earned dollars reflect the value of their work and the wealth they create for their communities. This is a long overdue change.
Impact on Employers
Ohio’s minimum wage is adjusted each January 1 based on the rate of inflation from the previous year as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers. However, employers can access state and local tax incentives to offset the higher payroll costs.
Small business owners who can’t afford to pay a $15 minimum wage may face a loss of customers and competition from larger corporations that can. It’s also possible that they might be subjected to class-action lawsuits from employees who have been deprived of their wages, according to the NFIB.
Employers can help ensure they stay compliant with the minimum wage laws in Ohio by ensuring their payroll systems and documentation reflect the new rate. They can also benefit from staying informed of inflation rates so they can adjust their wages accordingly. This can help to boost employee morale and ultimately the company’s bottom line. The American economy grows best when the middle class is strongest, and boosting wages helps strengthen it.
Impact on Employee Morale
Ultimately, employees are happier and more productive when they feel like they’re getting paid a fair wage. Increasing the minimum wage can help reduce turnover costs for businesses and improve overall employee morale.
Some research suggests that higher wages can decrease the need for public assistance, such as food stamps, because it increases economic activity and reduces poverty levels. Additionally, higher wages allow workers to spend more money on necessities such as housing and health care.
As Ohio’s minimum wage increase takes effect, it’s important for businesses to update their employee handbooks and ensure they are fully compliant with state and federal laws. Order your Ohio & Federal Labor Law Poster today to ensure that you’re prepared for the change in regulations. The poster includes required updates for tipped workers, the minimum wage rate, and more. It also highlights changes to overtime pay and recordkeeping rules. These updates are based on the latest federal and state standards.
Impact on the Economy
A lot of people in the United States work hard and still aren’t making enough money. This is a huge problem and it’s time for that to change. The minimum wage increase will help millions of people and it will boost the economy.
It will also reduce the need for safety-net programs. Studies show that living in poverty causes stress and shortens the lives of those who are forced to cope with it. The increase will give people the chance to have a better quality of life and it will help them spend more money.
The National Federation of Independent Businesses (NFIB) surveyed its members across Ohio and found that 87% are opposed to the state or federal efforts to impose a $15 minimum wage. NFIB members in Ohio get very concerned when these ideas come up because they know that one-size-fits-all mandates are never good for small business.