New year, New minimum wage

January 7, 2019

By: John Stran

Many changes that will happen in 2020 are unknown, but some Ohioan’s can expect a pay increase in the new year.

The Ohio minimum wage increased on Wednesday, Jan. 1, from $8.55 per hour to $8.70 for employees who work for a business that brings in more than $319,000 before taxes or any other expenses are subtracted.

Tipped employees who work for a business with the same financial standing will see an increase from $4.30 per hour to $4.35.

The increase was required thanks to a state constitutional amendment that was approved by voters in 2006, which changes the rate of minimum wage depending on the previous year’s inflation rate.

Ohio Constitution Part II Section 34a states that on the 30th day of each September, beginning in 2007, the state minimum wage rate shall be increased effective the first day of the following January by the rate of inflation for the 12 month period prior to that September according to the Consumer Price Index.

The Consumer Price Index (CPI), according to the U.S. Bureau of Labor Statistics, is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

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