Ohio employers should prepare for a 3.5% minimum wage increase taking effect Jan. 1, 2027. According to the Ohio Department of Commerce, the hourly rate will rise from $11 to $11.40 for non-tipped employees and from $5.50 to $5.70 for tipped workers.

The new rate applies to businesses with annual gross receipts exceeding $419,000, up from $405,000 in 2026. Smaller employers and workers under age 16 remain subject to the federal minimum wage of $7.25. The annual adjustment is required under Ohio’s voter-approved 2006 constitutional amendment.

“A 40-cent increase might not sound like much on paper, but multiply that across an entire workforce and the costs add up,” said Dave O’Neil, director of communications for the Ohio Manufacturers’ Association. “Employers need to account for those added expenses while making sure their payroll systems, pay rates and required postings are ready before January.”

A new Fisher Phillips analysis outlines steps employers should take before the increase, including reviewing employee pay, confirming payroll adjustments and addressing compliance risks. Ohio law allows additional damages of twice the back wages owed for minimum wage violations. 11/2/2026