OHIO’S NEW MINIMUM WAGE LAW

By

 Jerry P. Cline, Esq.

Last year, Ohio voters passed the Ohio Minimum Wage Amendment to the Ohio Constitution.  The new law raises the minimum wage in Ohio to $6.85 per hour effective January 1, 2007, with annual increases based upon the rate of inflation.  The new law applies to all businesses with annual gross receipts of $250,000 or more in the preceding calendar year.

Exemptions to the new law include employees under the age of 16; employees in business with less than $250,000 (adjusted annually) in gross receipts; employees of family owned businesses where all employees are members of the family; tipped employees, who get ½ of the minimum wage of $3.43; and employees with mental or physical disabilities.  As to the exemption for home health, agricultural and amusement park workers, the Ohio Department of Commerce recently contested this exemption and the Strickland administration has held that the minimum wage will be applied to these worker classifications as well.  It remains to be seen whether or not this exemption will be upheld by the courts.

The new law also provides for new “notice requirements” to employees, including the employer’s name, address, telephone number and other contact information.  The employer has 60 days to inform its employees of any change in its notice requirements via internet, bulletin board and/or paycheck notice.

Employers also have additional record keeping obligations, including the maintenance of pay records for a period of three years.  These records must include the employee’s name, address, occupation, pay rate, hours worked for each day worked and each amount paid an employee.  In addition, employers have the additional duty to provide these records to a requesting employee within 60 days of the request.  However, the employer can require that the records request be in writing.

Finally, the new law includes anti-retaliation measures and enforcement procedures, including damages equaling two times the amount of back pay owed for failure to pay the minimum wage. 

 Here is some practical advice to Ohio employers: create and incorporate an informational sheet into every new employee orientation procedure; ensure all contact information is included in the employee handbook; and maintain an updated website.  These procedures will help to ensure compliance with the new law and save you legal fees in the long run.

Jerry is an associate attorney with Andrews & Wyatt, LLC.  He focuses his practice in the areas of labor and employment relations, litigation and workers’ compensation defense.  You can contact him at 330-463-3660.