The Ohio minimum wage increase 2026 officially takes effect on January 1, 2026, bringing higher hourly pay for many workers across the state. According to the most recently confirmed state announcement released in late 2025, Ohio’s minimum wage is adjusted annually based on inflation, as required by state law. For 2026, the standard minimum wage for non-tipped employees at larger employers increases to $10.70 per hour, while tipped workers see a rise to $5.35 per hour before tips. Smaller employers fall under a slightly different rate. These changes are administered by the state of Ohio through its labor standards authority and apply statewide starting on the first day of 2026.
Ohio Minimum Wage Increase 2026
This increase continues Ohio’s voter-approved system of indexing wages to inflation, helping workers maintain purchasing power as living costs rise. The Ohio minimum wage applies to most employees, though some exemptions remain based on employer size, age, and job type.
In this article, we break down the Ohio minimum wage increase 2026, who it applies to, how much workers will earn, and what employers must do to stay compliant, using the most up-to-date verified information available as of January 2026.
What Is the Ohio Minimum Wage Increase 2026?
The Ohio minimum wage increase 2026 refers to the legally mandated rise in hourly pay rates for eligible workers beginning January 1, 2026. Ohio law requires the wage to adjust annually based on inflation, ensuring earnings keep pace with economic conditions.
The increase affects full-time, part-time, hourly, and tipped workers, depending on employer size and annual gross receipts.
Ohio Minimum Wage Rates Effective January 1, 2026
The updated wage rates vary depending on employer classification and worker status. Below is a clear summary of the confirmed 2026 rates.
| Category | Hourly Rate (2026) |
|---|---|
| Standard Minimum Wage | $10.70 |
| Tipped Employee Cash Wage | $5.35 |
| Tip Credit Allowed | Yes |
| Small Employer Rate | $10.45 |
| Small Employer Tipped Rate | $5.25 |
| Federal Minimum (Exempt Employers) | $7.25 |
| Youth/Training Wage | Limited use |
| Effective Date | January 1, 2026 |
These rates apply statewide unless a worker qualifies for a specific exemption under Ohio law.
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Who Qualifies for the 2026 Ohio Minimum Wage?
Most Ohio workers are covered by the new wage rates, but coverage depends on employer size and revenue.
• Employees at businesses earning more than the state revenue threshold receive the full minimum wage
• Tipped employees must earn at least the full minimum wage when tips are included
Employers with annual gross receipts below the threshold may pay the lower small employer rate.
Tipped Workers and the Ohio Minimum Wage Increase 2026
Tipped employees benefit from the Ohio minimum wage increase 2026 through a higher cash wage. Employers may count tips toward meeting the full minimum wage, but if tips fall short, the employer must make up the difference.
This rule protects workers in restaurants, bars, salons, and other tipped industries.
Small Employers and Special Wage Rules
Small employers in Ohio are defined by annual gross receipts below the state-set limit. These employers are permitted to pay a slightly lower hourly rate, though it still increases in 2026.
Even small employers must follow strict recordkeeping and tip credit rules to remain compliant.
How the Ohio Minimum Wage Is Adjusted Each Year
Ohio’s minimum wage system is tied directly to inflation. Each year, state officials calculate the increase based on economic data, then announce the new rate ahead of January 1.
This automatic adjustment ensures wages rise steadily rather than remaining frozen for long periods.
Employer Responsibilities Under the 2026 Wage Increase
Employers must update payroll systems, workplace posters, and employee notices to reflect the new rates. Failure to comply with the Ohio minimum wage increase 2026 can result in penalties and back-pay obligations.
Clear communication with employees is strongly encouraged.
FAQs About Ohio Minimum Wage Increase 2026
Q1. When does the Ohio minimum wage increase take effect?
It takes effect on January 1, 2026.
Q2. Does the increase apply to tipped workers?
Yes, tipped workers receive a higher cash wage, with tips counting toward the full minimum wage.
Q3. Are all employers required to pay $10.70 per hour?
No, smaller employers may pay a slightly lower rate under state law.
Conclusion
The Ohio minimum wage increase 2026 reflects the state’s ongoing commitment to inflation-based wage adjustments. With the standard hourly rate rising to $10.70 and tipped wages also increasing, many workers will see higher pay starting January 1, 2026. Understanding how the new rates apply based on employer size and job type helps both workers and businesses prepare for the change. Staying informed ensures compliance, fair pay, and smoother transitions into the new wage year