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Minimum Wage in Ohio: $11.00 an Hour and the $405,000 Rule

The minimum wage in Ohio is $11.00 an hour as of October 2026 for employers with annual gross receipts of $405,000 or more. Employers below that line can pay $7.25, the federal rate, and tipped staff have a minimum cash wage of $5.50.

Everything here comes from the U.S. Department of Labor's state minimum wage tables, checked in October 2026. Ohio splits its rate by the size of the business, which is why you'll see two different numbers quoted for the same state.

Ohio minimum wage rates

Employer or workerRate (as of October 2026)
Employers with annual gross receipts of $405,000 or more$11.00 an hour
Employers with annual gross receipts under $405,000$7.25 an hour
Tipped employees, minimum cash wage$5.50 an hour
Maximum tip credit$5.50 an hour
OvertimeAfter 40 hours a week

The $405,000 rule

This is the bit people miss. Ohio's $11.00 rate applies to employers whose annual gross receipts are $405,000 or more. For employers below that, the U.S. Department of Labor lists the state minimum wage as $7.25. So two businesses on the same street can have different legal minimums. A busy restaurant and a small sole trader cafe next door can both be paying lawfully while one pays $11.00 and the other $7.25 an hour. The test is gross receipts, which means total takings before costs, so a business with thin margins can still be over the line.

Be careful with it, though. The U.S. Department of Labor is clear that employers subject to the federal Fair Labor Standards Act must pay at least the federal minimum wage of $7.25, so the lower Ohio rate never takes anyone below that. Growing past $405,000 in gross receipts moves you onto the $11.00 rate, so keep an eye on your turnover during the year rather than finding out at year end.

  1. Work out your annual gross receipts, not your profit.
  2. If they're $405,000 or more, pay at least $11.00 an hour.
  3. If they're under $405,000, pay at least $7.25 an hour.
  4. Recheck as your business grows, because crossing the line changes your rate.
  5. Keep records that show which rate you've applied and why.

Tipped pay in Ohio

For larger employers, Ohio splits the $11.00 minimum evenly: a minimum cash wage of $5.50 an hour and a maximum tip credit of $5.50. Under Ohio's definition, a tipped employee is someone who gets more than $30 a month in tips. Cash wage plus tips still has to reach the full minimum wage every hour, so check tipped pay at the end of each pay period.

If you pool tips, my tip pooling guide covers the basics.

Overtime in Ohio

The U.S. Department of Labor lists Ohio's premium pay rule as weekly, after 40 hours, for both larger and smaller employers. Overtime is worked out from the employee's regular rate, so as the minimum wage rises each year, so does the cost of every overtime hour at the bottom of your pay scale. My overtime laws guide explains who's exempt and how the rate is calculated.

Records worth keeping

  • Your annual gross receipts, so you can show which minimum wage band applies.
  • Hours worked by every non-exempt employee, including overtime.
  • Tips reported by tipped staff for each pay period.
  • Any top-up paid where cash wage plus tips fell short.
  • The rate you applied each year, so a later change can be checked against the record.

Ohio's rate rises every year

The U.S. Department of Labor notes that Ohio's minimum wage is adjusted annually based on a set formula. That's why the rate has crept up most years rather than jumping in big steps.

YearOhio minimum wage
2014$7.25 to $7.95
2015 and 2016$7.25 to $8.10
2017$8.15
2018$8.30
2019 and 2020$8.70
2021$8.80
2022$9.30
2023$10.10
2024$10.45
As of October 2026$11.00

The ranges in 2014 to 2016 reflect the split between smaller and larger employers that the state still uses today.

How Ohio compares with its neighbours

StateBasic minimum wage (as of October 2026)
Ohio$11.00 (gross receipts $405,000 or more)
Michigan$13.73
Pennsylvania$7.25
West Virginia$8.75 (employers with 6 or more employees at one location)
Indiana$7.25

Ohio sits in the middle of its region: well above Pennsylvania and Indiana, well below Michigan. That matters most for businesses near a border, where a worker can cross the state line for a noticeably different hourly floor. If you have staff across state lines, pay each person the rate where they work.

What the tables don't show

The U.S. Department of Labor says its tables don't display subminimum rates for minors or students, training wages for new hires, or local rates set above the state's. If you employ young workers or trainees, check the specific rule for them.

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My verdict

Ohio is easy once you know which side of $405,000 you're on. Most established small businesses with a few staff will cross that line, so plan on $11.00 an hour and expect a small rise each year. If you're near the threshold, watch your gross receipts during the year so you move to the higher rate on time. For the federal baseline, see my federal minimum wage guide.

Frequently asked questions

What is the minimum wage in Ohio?

It's $11.00 an hour as of October 2026 for employers with annual gross receipts of $405,000 or more.

What is the minimum wage for small businesses in Ohio?

For employers with annual gross receipts under $405,000, the U.S. Department of Labor lists the state minimum wage as $7.25 an hour.

What is the tipped minimum wage in Ohio?

The minimum cash wage is $5.50 an hour with a maximum tip credit of $5.50, as long as wages plus tips reach the full minimum.

Does Ohio's minimum wage go up every year?

Yes. It's adjusted annually based on a set formula.

Who counts as a tipped employee in Ohio?

Someone who gets more than $30 a month in tips, according to the U.S. Department of Labor's table.

Is Ohio's minimum wage higher than the federal minimum wage?

For employers with annual gross receipts of $405,000 or more, yes: $11.00 against the federal $7.25.

When is overtime due in Ohio?

The U.S. Department of Labor lists Ohio's premium pay rule as weekly, after 40 hours.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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