Minimum Wage Laws For Employees In 2023
Employees in the Columbus area must be paid at least the minimum wage, and they must be paid for time they have worked. It is important for workers in Columbus to know that they have rights concerning minimum wage under both federal and state laws, including the federal Fair Labor Standards Act (FLSA). It is also important for employees to know that the minimum wage will increase in 2023, and any employer who fails to pay the minimum wage may be required to provide a remedy. Whether you currently have concerns about minimum wage law violations or you want to be prepared by knowing your rights in the New Year, our Columbus wage and hour law attorneys can provide you with information about Ohio and federal law. The following are key things to know about minimum wage laws in Ohio for 2023.
Employers Cannot Make Deductions from Your Paycheck Resulting in Earnings Below the Minimum Wage
Your employer may be permitted to make certain deductions from your paycheck, but no deduction can result in you earning less than the minimum wage. If that happens, the deduction is unlawful. This is most common among workers in the personal service, restaurant, and hospitality industries, where “tips” for ancillary services may be deducted from regular paychecks. If those deductions take the worker’s hourly rate below minimum wage (for hours worked up to 40 hours), the deduction is unlawful. If the deduction reduces the worker’s overtime wage to less than time plus one-half, then the deduction is unlawful. These are often complicated calculations that should be carefully reviewed before taking action.
Minimum Wage Will Increase in 2023
In 2022, the minimum wage in Ohio was $9.30 per hour. If you work in Ohio, it is critical to know that the FLSA sets the federal minimum wage at only $7.25 per hour, but many states have enacted laws that set local rates above the federal minimum wage. Ohio is one state that does set the minimum wage at a rate significantly higher than the federal rate, and employers in Ohio must comply with the Ohio minimum wage. Accordingly, non-exempt employees in 2022 should have been paid at least $9.30 per hour.
As of January 1, 2023, Ohio employers will be required to pay a minimum wage of $10.10 per hour to non-exempt, untipped employees. There are some exceptions for employees working for employers that gross less than $372,000 per year in revenue, and for employees under the age of 16. In these circumstances, Ohio law requires that the employee be paid “no less than the current federal minimum wage rate,” which remains $7.25 per hour.
Tipped Employees Are Also Owed a Minimum Wage
If you are a “tipped employee,” then you are also owed a minimum wage. The 2023 required minimum wage for tipped employees in Ohio is $5.05 per hour plus tips.
What is a tipped employee? According to the Ohio Department of Commerce, the term tipped employee “includes any employee who engages in an occupation in which he/she customarily and regularly receives more than thirty dollars ($30.00) per month in tips.” There are various types of jobs where employees fall into the category of “tipped employees.” The most common are food service workers (wait staff, bartenders, and some delivery drivers). If you have questions about your classification, you should ask an attorney.
Seek Advice from a Columbus Wage and Hour Violation Lawyer
Any employee who has concerns about their rights under minimum wage laws, or has concerns that their rights have been violated, should seek advice from a lawyer. One of the Columbus minimum wage attorneys at the law firm of Brian G. Miller CO., L.P.A. will be happy to speak to you today.