Ohio Minimum Wage Will Rise to $11.40 in 2027

Ohio’s minimum wage will increase by 3.5 percent on Jan. 1, 2027, lifting the baseline hourly rate for non-tipped workers to $11.40 and the direct wage for tipped staff to $5.70, state officials announced Wednesday. The announcement was issued in Columbus by the Ohio Department of Commerce Division of Industrial Compliance’s Bureau of Wage and Hour Administration.

The adjustment represents a 40-cent increase for non-tipped workers, up from the 2026 rate of $11.00 per hour. Tipped employees, including restaurant servers and hospitality staff across central Ohio, will receive a 20-cent increase above the current $5.50 hourly rate. Under state regulations, employers must make up any difference if an employee's combined tips and direct wages do not equal at least the full $11.40 hourly rate.

The impending wage increase is governed by a constitutional amendment approved by Ohio voters in November 2006. Under Article II, Section 34a of the Ohio Constitution, the state’s minimum wage must adjust on Jan. 1 each year to keep pace with the rate of inflation.

The constitutional formula ties annual adjustments to the federal Consumer Price Index for urban wage earners and clerical workers, known as the CPI-W, for the 12-month period ending in August. The 3.5 percent adjustment scheduled for 2027 matches the exact rise in the CPI-W recorded from Sept. 1, 2025, to Aug. 31, 2026.

Alongside the revised hourly rates, state officials announced an updated gross receipts threshold that determines which businesses must pay the state minimum wage. Effective Jan. 1, the Ohio minimum wage will apply only to businesses with annual gross receipts exceeding $420,000. That figure represents an increase from the 2026 threshold of $405,000.

Smaller enterprises and certain younger workers remain subject to a different pay standard. For employees at businesses with annual gross receipts of $420,000 or less, and for 14- and 15-year-old workers, the minimum wage remains tied to the federal rate of $7.25 per hour. That federal rate cannot change without an act of the U.S. Congress and the president’s signature.

Employers across central Ohio must prepare mandatory workplace disclosures prior to the new year. State regulators require businesses to display the official 2027 Minimum Wage poster in a conspicuous place accessible to all employees. The notice is available for employers to download on the Division of Industrial Compliance website. The Bureau of Wage and Hour Administration is responsible for enforcing wage standards across Ohio, protecting minors in workplaces, and overseeing fair pay on public improvement projects.

Ohio’s minimum wage will increase by 3.5 percent on Jan. 1, 2027, lifting the baseline hourly rate for non-tipped workers to $11.40 and the direct wage for tipped staff to $5.70, state officials announced Wednesday. The announcement was issued in Columbus by the Ohio Department of Commerce Division of Industrial Compliance’s Bureau of Wage and Hour Administration.

The adjustment represents a 40-cent increase for non-tipped workers, up from the 2026 rate of $11.00 per hour. Tipped employees, including restaurant servers and hospitality staff across central Ohio, will receive a 20-cent increase above the current $5.50 hourly rate. Under state regulations, employers must make up any difference if an employee's combined tips and direct wages do not equal at least the full $11.40 hourly rate.

The impending wage increase is governed by a constitutional amendment approved by Ohio voters in November 2006. Under Article II, Section 34a of the Ohio Constitution, the state’s minimum wage must adjust on Jan. 1 each year to keep pace with the rate of inflation.

The constitutional formula ties annual adjustments to the federal Consumer Price Index for urban wage earners and clerical workers, known as the CPI-W, for the 12-month period ending in August. The 3.5 percent adjustment scheduled for 2027 matches the exact rise in the CPI-W recorded from Sept. 1, 2025, to Aug. 31, 2026.

Alongside the revised hourly rates, state officials announced an updated gross receipts threshold that determines which businesses must pay the state minimum wage. Effective Jan. 1, the Ohio minimum wage will apply only to businesses with annual gross receipts exceeding $420,000. That figure represents an increase from the 2026 threshold of $405,000.

Smaller enterprises and certain younger workers remain subject to a different pay standard. For employees at businesses with annual gross receipts of $420,000 or less, and for 14- and 15-year-old workers, the minimum wage remains tied to the federal rate of $7.25 per hour. That federal rate cannot change without an act of the U.S. Congress and the president’s signature.

Employers across central Ohio must prepare mandatory workplace disclosures prior to the new year. State regulators require businesses to display the official 2027 Minimum Wage poster in a conspicuous place accessible to all employees. The notice is available for employers to download on the Division of Industrial Compliance website. The Bureau of Wage and Hour Administration is responsible for enforcing wage standards across Ohio, protecting minors in workplaces, and overseeing fair pay on public improvement projects.