Ohio Minimum Wage 2027: $11.40 an Hour From January 1
Quick answer: The Ohio minimum wage 2027 rate is $11.40 an hour for non-tipped workers starting January 1, 2027, up 40 cents (3.5%) from $11. Tipped workers get a base of $5.70 an hour plus tips. Businesses grossing $420,000 or less a year, and workers aged 14 and 15, stay at the federal $7.25.
Key Takeaways
Ohio's minimum wage for non-tipped employees rises from $11.00 to $11.40 an hour on January 1, 2027, a 3.5% inflation-linked increase announced by the Ohio Department of Commerce.
The base cash wage for tipped employees rises from $5.50 to $5.70 an hour, and employers must make up any shortfall if tips do not bring pay to $11.40.
The state rate applies to businesses with annual gross receipts above $420,000, up from $405,000; smaller businesses and 14- and 15-year-olds remain at the federal $7.25.
A full-time worker at the new rate earns about $23,712 a year before taxes, roughly $832 more than at the 2026 rate.
The increase is automatic: a 2006 voter-approved constitutional amendment ties Ohio's minimum wage to the CPI-W inflation index every year.
Ohio's lowest-paid workers get a raise on New Year's Day. The Ohio minimum wage 2027 rate, announced on September 30, 2026, by the Ohio Department of Commerce's Bureau of Wage and Hour Administration, lifts the hourly floor to $11.40 for non-tipped employees and $5.70 for tipped employees. Both rates take effect January 1, 2027, and both represent a 3.5% increase over 2026.
This guide explains exactly who gets the new rate, who does not, how much more a paycheck will show, how tipped pay and overtime work, and what to do if an employer pays less than the law requires.
What is the Ohio minimum wage in 2027?
From January 1, 2027, the Ohio minimum wage is $11.40 an hour for non-tipped workers and $5.70 an hour plus tips for tipped workers. The current 2026 rates are $11.00 and $5.50.
Non-tipped employees: $11.40 per hour in 2027, up from $11.00 in 2026.
Tipped employees (base cash wage): $5.70 per hour plus tips in 2027, up from $5.50.
Businesses at or below the gross-receipts threshold: $7.25 per hour; the threshold rises to $420,000 from $405,000.
Workers aged 14 and 15: $7.25 per hour, unchanged.
The official 2027 Minimum Wage poster from the Ohio Department of Commerce lists these figures, and employers are required to display it in a conspicuous place at work.
How much more will Ohio minimum wage workers earn in 2027?
A worker on the state minimum gains 40 cents an hour, which adds up to about $16 a week or $832 a year for a full-time schedule. The math below assumes 40 hours a week for 52 weeks and is shown before taxes.
Weekly pay: $456 at $11.40, compared with $440 at $11.00.
Yearly pay: about $23,712 at $11.40, compared with $22,880 at $11.00.
Part-time example: a worker on 25 hours a week earns $285 a week in 2027, up from $275.
Not everyone sees the raise as enough. Heather Smith, a work and wages researcher at the think tank Policy Matters Ohio, told Signal Cleveland that the roughly $23,712 annual income is about $3,600 below the 2026 federal poverty level for a family of three. In her words, the wage "remains flat for the next 364 days" after each January adjustment, while prices keep moving.
Who gets the Ohio minimum wage 2027 rate, and who stays at $7.25?
The $11.40 rate covers employees of Ohio businesses with annual gross receipts of more than $420,000. Two groups remain tied to the federal minimum wage of $7.25 an hour.
Employees of smaller businesses. If an employer grosses $420,000 or less a year after January 1, 2027, it may pay the federal rate. That threshold rises from $405,000 in 2026.
Workers aged 14 and 15. The state rate does not apply to employees under 16, who must be paid at least $7.25.
The federal $7.25 rate has not changed since 2009 and can only be raised by an act of Congress signed by the President.
The state poster also lists groups exempt from Ohio's minimum wage altogether, including federal employees, babysitters working in the employer's home, outside salespeople paid by commission, workers in bona fide executive, administrative or professional roles, certain volunteers for public agencies, staff of nonprofit-run children's camps, and family members working in a solely family-owned business.
What is the Ohio tipped minimum wage for 2027?
Tipped employees in Ohio must receive a base cash wage of at least $5.70 an hour in 2027, and their wages plus tips must reach at least $11.40 for every hour worked. If tips fall short, the employer has to pay the difference.
Ohio treats someone as a tipped employee when they work in an occupation where they customarily and regularly receive more than $30 a month in tips, such as restaurant servers. In practice, the $5.70 base plus tips must add up to at least $11.40 an hour. Employers who use this tip credit must be able to show that each tipped worker's combined cash wage and tips meet the full minimum wage.
Quick check for tipped workers
Divide your weekly tips by your weekly hours.
Add your $5.70 base rate.
If the total is under $11.40, your employer owes you the gap for that pay period.
How does overtime work under the Ohio minimum wage 2027 rules?
Ohio requires overtime at one and a half times the employee's regular rate for hours over 40 in a workweek. For a worker on the new minimum, that is at least $17.10 an hour for overtime hours.
The state poster notes one exception: employers grossing less than $150,000 a year are not covered by this Ohio overtime rule. Employers must also keep payroll records for at least three years, including each employee's name, address, occupation, rate of pay, amount paid each pay period, and hours worked each day and week.
Why does Ohio's minimum wage go up every January?
Ohio's minimum wage rises automatically because voters approved a constitutional amendment, Article II, Section 34a, in November 2006. It requires the rate to increase each January 1 by the rate of inflation.
The state measures inflation with the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published by the federal Bureau of Labor Statistics (BLS). For the 2027 rate, the Ohio Department of Commerce used the change from September 1, 2025, to August 31, 2026, which came to 3.5%. The index tracks common household costs such as rent, utilities, groceries, dining out, prescriptions and doctor visits.
Some local rules go further for specific jobs. Cleveland's living wage, for example, is currently $16.26 an hour, but it applies only to city employees and workers at companies holding city contracts, not to private employers in general. A push for a statewide $15 minimum wage, which would also have ended the separate tipped wage, did not gather enough signatures to reach the 2024 ballot.
What should Ohio workers and job seekers do now?
Check your first paycheck of 2027 against the Ohio minimum wage 2027 rate, and keep your own record of hours and tips. Small steps now make it easier to fix a mistake later.
Confirm your rate: your hourly pay for work from January 1, 2027, should be at least $11.40 if your employer grosses more than $420,000 a year, unless you are 14 or 15 or your job is exempt.
Look for the poster: employers must post the official 2027 Minimum Wage poster where workers can see it.
Track tips and hours: tipped workers should log hours and tips each shift so they can spot a shortfall below $11.40.
Use the raise in job offers: when comparing entry-level offers, treat $11.40 as the legal floor, not the target.
Where can I get help with Ohio minimum wage questions?
Contact the Ohio Department of Commerce, Division of Industrial Compliance, whose Bureau of Wage and Hour Administration enforces Ohio's minimum wage laws. The official poster lists these contact details for minimum wage issues.
Phone: 614-644-2239 (TTY/TDD: 1-800-750-0750)
Address: 6606 Tussing Road, Reynoldsburg, Ohio 43068
Website: com.ohio.gov
Having your pay stubs, schedule and any tip records on hand makes any conversation about your pay easier. For a state-by-state comparison, see our guide to the minimum wage 2027 by state.
Last updated: October 7, 2026.
Frequently Asked Questions
What is the minimum wage in Ohio in 2027?
It is $11.40 an hour for non-tipped employees starting January 1, 2027. Tipped employees receive a base wage of $5.70 an hour plus tips, as long as the total reaches at least $11.40.
When does the Ohio minimum wage increase take effect?
The new rates take effect on January 1, 2027. The Ohio Department of Commerce announced them on September 30, 2026.
How much is Ohio's minimum wage going up in 2027?
It rises by 40 cents an hour, or 3.5%, from $11.00 to $11.40. The tipped base wage rises 20 cents, from $5.50 to $5.70.
What is the minimum wage for 14 and 15 year olds in Ohio?
Workers aged 14 and 15 must be paid at least the federal minimum wage of $7.25 an hour. This exception is set out on the state's official 2027 Minimum Wage poster.
Does every Ohio employer have to pay $11.40?
No. The state rate applies to businesses with annual gross receipts above $420,000. Employers at or below that amount may pay the federal $7.25, and certain jobs, such as outside commissioned sales, are exempt.
Why does Ohio raise its minimum wage every year?
A constitutional amendment Ohio voters approved in 2006 requires the rate to rise each January 1 with inflation. The state uses the CPI-W index for the 12 months ending in August.
Sources
Ohio's minimum wage will bump up to $11.40 in 2027, Signal Ohio
Ohio minimum wage to rise in 2027; here's how much, WKRC Local 12
This article was compiled from the official and news sources listed above, with AI-assisted writing and automated fact-checking by the Jobsiz editorial system. It is general information, not legal advice.