Complete Story
12/13/2023
Minimum Wage Increases in Ohio and Michigan
Ohio Minimum Wage Increase
Source: Ohio Department of Commerce, December 2023
Ohio’s minimum wage is scheduled to increase January 1, 2024, to $10.45 per hour for non-tipped employees and $5.25 per hour for tipped employees. The minimum wage will apply to employees of businesses with annual gross receipts of more than $385,000 per year.
The current 2023 minimum wage is $10.10 per hour for non-tipped employees and $5.05 per hour for tipped employees. The 2023 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $372,000.
The Constitutional Amendment (II-34a) passed by Ohio voters in November 2006 states Ohio’s minimum wage shall increase on January 1 each year by the rate of inflation. The state minimum wage is tied to the Consumer Price Index (CPI-W) for urban wage earners and clerical workers over the 12-month period prior to September. The CPI-W index increased by 3.7 % over the 12-month period from September 1, 2022, to August 31, 2023.
For employees at smaller companies with annual gross receipts of $385,000 or less per year after January 1, 2024, and for 14 and 15-year-olds, the state’s minimum wage is $7.25 per hour. For these employees, the state wage is tied to the federal minimum wage of $7.25 per hour, which requires an act of Congress and the President’s signature to change.
Michigan Minimum Wage Increase
Source: Michigan Department of Labor & Economic Opportunity, December 2023
On January 1, 2024, Michigan's minimum wage rate will increase from $10.10 to $10.33 per hour as set by Michigan's Improved Workforce Opportunity Wage Act of 2018 which establishes the annual schedule of increases.
Effective January 1, 2024:
- The minimum hourly wage will increase to $10.33 per hour.
- The 85% rate for minors aged 16 and 17 will increase to $8.78 per hour.
- The tipped employee rate of hourly pay increases to $3.93 per hour.
- The training wage of $4.25 per hour for newly hired employees ages 16 to 19 for their first 90 calendar days of employment remains unchanged.
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