Ohio’s minimum wage is going up again in 2027, though the increase will be relatively small.
Starting Jan. 1, 2027, Ohio’s minimum wage will increase to $11.40 per hour for non-tipped employees, up from the current $11 per hour. The minimum cash wage for tipped employees will also increase, going from $5.50 to $5.70 per hour.
The 3.5% increase was announced by the Ohio Department of Commerce on Sept. 30.
The new rates were set under Ohio’s constitutional minimum-wage requirement, which ties the annual increase to inflation.
Ohio voters approved a constitutional amendment in 2006 requiring the state’s minimum wage to be adjusted every year based on inflation. Under Article II, Section 34a of the Ohio Constitution, the adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.
The Bureau of Labor Statistics reported that the CPI-W increased 3.5% over the 12 months ending in August 2026, which is the figure used for the 2027 adjustment.
That means this year’s increase isn’t the result of a new bill passed by the Ohio legislature. The annual adjustment is built into the state’s constitution.
The $11.40 rate applies to employees covered by Ohio’s state minimum-wage law who work for businesses above the state’s annual gross-receipts threshold.
That threshold is also changing in 2027.
The minimum wage will apply to businesses with more than $420,000 in annual gross receipts, up from $405,000 in 2026.
Employees at businesses with annual gross receipts of $420,000 or less will remain subject to the federal minimum wage of $7.25 per hour under Ohio’s minimum-wage rules. Workers who are 14 or 15 years old are also covered by the $7.25 rate under the state constitutional provision.
For tipped workers, employers can pay a cash wage below the standard minimum wage as long as the employee’s wages plus tips equal at least the applicable minimum wage. Ohio’s constitution allows employers to pay tipped employees no less than half of the standard minimum wage when the tip requirement is met.
For a worker making the regular minimum wage and working 40 hours a week, the new $11.40 rate works out to $456 per week before taxes, assuming a full 40-hour workweek.
The new rate will take effect across Ohio on New Year’s Day, giving workers and employers a little time to prepare for the change. And because the annual adjustment is tied to inflation under Ohio’s Constitution, another minimum-wage adjustment will be calculated for 2028 based on the applicable CPI-W change.
