Ohio workers set for New Year's pay bump as minimum wage rises to $11
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Ohio is one of 19 states where workers are in line for a raise when minimum wage increases take effect on New Year's Day.
Why it matters: Beyond those earning minimum wage, these increases often push employers to raise salaries for workers higher up on the income ladder.
Zoom in: Ohio's minimum wage for non-tipped workers will increase 2.8%, to $11 per hour, while the tipped minimum wage increases to $5.50 per hour.
- The state's minimum wage automatically increases each year by the rate of inflation.
- It went from $10.45 per hour to $10.70 for non-tipped employees at the start of 2025.
The big picture: More than 8.3 million workers across the country will see their pay go up on Jan. 1. That includes both those getting a direct increase and others indirectly affected when companies adjust wage ladders, according to an estimate from the progressive Economic Policy Institute.
- The extra boost comes at a time when rising prices are particularly punishing for the lowest earners.
- Another three states — Florida, Alaska and Oregon — are increasing their minimum wages later in the year.
Stunning stat: For the first time, there will be more workers in states with a minimum wage of $15 an hour or higher than those with the federal minimum of $7.25.
State of play: The other states raising their minimum wage on Jan. 1 are:
- Arizona, California, Colorado, Connecticut, Hawai'i, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Rhode Island, South Dakota, Vermont, Virginia and Washington.
The other side: 20 states, mostly in the South, still use the $7.25 an hour rate.
- Many states have passed so-called preemption laws that prevent cities from passing higher minimum wages.
- Some policymakers and business owners argue that higher minimum wages are costly for businesses and lead to less job growth.
Reality check: These are still very low wages — high inflation has eroded the value of $15.