Ohio workers earning minimum wage will see another increase when the calendar turns to 2027. Beginning January 1, the state minimum wage will rise to $11.40 an hour for non-tipped employees, up 40 cents from the current $11 rate. Tipped employees will see their minimum cash wage increase from $5.50 to $5.70 an hour.
The changes amount to a 3.5% increase and follow a formula written into the Ohio Constitution by voters two decades ago.
Inflation Drives The Increase
Ohio voters approved a constitutional amendment in November 2006 requiring the state minimum wage to be adjusted annually for inflation. The calculation uses the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as the CPI-W, for the 12-month period ending each August. Federal data show that the CPI-W increased 3.5% between August 2025 and August 2026. That figure determines Ohio’s 2027 adjustment, with the resulting wage rounded to the nearest five cents.
The system means Ohio’s minimum wage can rise without another vote of the General Assembly or another statewide ballot issue.
For a full-time employee working 40 hours a week throughout the year, the 40-cent increase represents about $832 in additional gross wages annually.
Tipped Workers Also Get A Raise
Ohio employers covered by the state minimum wage will be permitted to pay tipped employees a direct wage of $5.70 per hour beginning January 1.
That represents half of the new $11.40 minimum wage. Employers using the tip credit must ensure that a worker’s direct wages and tips together equal at least the applicable minimum wage. If they do not, the employer is responsible for making up the difference. The U.S. Department of Labor currently lists Ohio among states requiring a tipped cash wage higher than the federal minimum of $2.13 per hour.
Business Threshold Moves Higher
The wage change also comes with an adjustment in which businesses are subject to Ohio’s higher state rate.
Beginning January 1, the $11.40 minimum will generally apply to employers with annual gross receipts of more than $420,000. The corresponding threshold for 2026 is $405,000.
Like the wage itself, that threshold is adjusted for inflation under the constitutional amendment. Workers at businesses with annual gross receipts of $420,000 or less, along with employees who are 14 or 15 years old, remain subject to the federal minimum wage of $7.25 per hour under Ohio’s formula.
The federal minimum wage has remained at $7.25 since July 2009. Changing it would require federal action.
Employers Will Need New Posters
Businesses covered by Ohio’s minimum-wage law also have a practical item to add to their year-end checklist. Employers are required to display the state’s official 2027 Minimum Wage poster in a conspicuous location. The new poster is available through the Ohio Department of Commerce Division of Industrial Compliance.
Ohio’s Bureau of Wage and Hour Administration oversees enforcement of the state’s minimum-wage requirements. The bureau also administers workplace protections involving minors and wage requirements for certain public improvement projects.