Ohio Minimum Wage Will Rise to $11.40 in 2027
The state's base pay rate for most workers will increase by 3.5% starting on January 1, 2027.
Updated on Oct. 2, 2026 in Employment
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Ohio will increase its state minimum wage for non-tipped workers to $11.40 per hour beginning January 1, 2027. This adjustment reflects a 3.5% increase based on the Consumer Price Index for urban wage earners measured through August 2026.
Why it matters
The change is mandated by a 2006 voter-approved constitutional amendment that requires Ohio to adjust its minimum wage annually to account for inflation. This mechanism ensures that the state's baseline pay keeps pace with rising costs for living.
The new tipped employee minimum wage will rise to $5.70, up from the current $5.50. Additionally, the annual gross receipts threshold required for state wage applicability will increase to $420,000 from $405,000.
The players
Ohio House Commerce and Labor Committee
This legislative body is currently reviewing House Bill 34 regarding state labor policies.
The details
Workers at businesses with annual gross receipts of $420,000 or less will continue to be governed by the $7.25 federal minimum wage rate rather than the state level. Employers across Ohio must display the official 2027 state minimum wage poster to comply with labor regulations.
Timeline
Voters approved the constitutional amendment for inflation-based adjustments in 2006.
The inflation measurement period for the 2027 increase occurred from September 2025 through August 2026.
House Bill 34 was introduced to the state legislature in February 2025.
The updated minimum wage rates take effect on January 1, 2027.
Macro View
This adjustment follows the recurring annual cycle mandated by the 2006 Ohio constitutional amendment on minimum wage. The state's trajectory mirrors established inflation-tracking protocols that diverge from the static federal minimum wage of $7.25.
Employees at businesses exceeding the $420,000 gross receipts threshold will see their hourly earnings increase starting in January. Those working for smaller employers remain subject to the $7.25 federal rate, which does not automatically adjust for inflation.
The takeaway
Workers should verify their employer's gross receipts to determine if they qualify for the state-mandated $11.40 hourly rate. Keeping updated on state labor posters helps ensure employees remain informed of their rights as the new year begins.
Further reading
For more information on labor standards, visit the Employment section.
Source note: This article includes information reported by Wcsmradio.
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