Ohio’s Minimum Wage Increase
Whilst the recent boost to Ohio’s minimum wage is welcomed by those receiving it, it is another matter for businesses caught out by the changed regulation.
For the average small business employing 40 full- and part-time workers is likely to see a change in their wage bill of around $1,000 a month.
This has been the first minimum wage hike in the state of Ohio since 1996, and sets wages at $6.85 per hour – an increase of 33% over the previous minimum of $5.15.
The increase in the minimum wage was approved on Nov 7 2006 by Ohio voters in a constitutional amendment, which also calls for annual boosts tied to inflation. The result of this new piece of legislation has resulted in a large number of business owners feeling hard done by.
Many believe that wages should be determined by the free market and not simply the result of a one-off vote. Adjustment is now needed by companies and organizations in order to absorb this wage increase, which is more than likely going to come in the form of price increases.
Companies have warned that overtime hours for full-time members of staff are likely to be slashed to compensate for losses accrued by the wage hike.
The total effect of the wage increase is unlikely to be known for the next couple of months as businesses adjust to their increased overhead costs, however it is likely to push the cost of living up for residents across the entire state of Ohio.
- There are more than 5.34 million employed people in Ohio, with 50 percent of those workers making less than $14.07 per hour. The average hourly salary is $17.44, and average annual salary is $36,270.
- There are more than 130.3 million employed people in the country, with 50 percent making less than $14.15 per hour. The average nationwide hourly salary is $18.21, and average annual salary is $37,870.
- In Ohio, there is an estimated 26,000 people at $5.15, the previous minimum wage.
With changes in state regulation an inevitable part of the future, you may wish to consider investing in a time and attendance system, which automates the process of recording and paying wages to your employees.