Ohio's new minimum wage starts on New Year's Day.
Editor's note: The original version of this story gave an incorrect amount for minimum wage workers who receive tips. Minimum wage for such workers will increase to $3.93.
The Ohio minimum wage is set to increase by 15 cents to $7.85 an hour starting Jan. 1, 2013, the Ohio Department of Commerce said Friday.
For employees who receive tips, the new minimum wage will increase to $3.93, the state commerce department added.
The new minimum wage rates will apply to employees of businesses with annual gross receipts of more than $288,000 a year as of Jan. 1. Currently, the 2012 rates apply to business with gross receipts of $283,000 annually.
The state minimum wage changes annually because of an amendment to the Ohio Constitution that voters passed in November, 2006. The amendment requires the minimum wage to increase on Jan. 1 each year by the rate of inflation. The minimum wage is tied to the Consumer Price Index for urban wage earners and clerical workers for the 12-month period prior to September. The CPI index rose 1.7 percent from Sept. 1, 2011 to Aug. 31, 2012.
The amendment also says that the wage rate for non-tipped employees shall be rounded to the nearest five cents.
For employees at companies with less than $288,000 in gross receipts, and for 14 and 15-year-olds, the state minimum wage is $7.25 an hour.
The minimum wage of those employees is tied to the federal minimum wage of $7.25 an hour, which requires an act of Congress and the President’s signature in order to be changed.
Michigan’s minimum wage is $7.40 an hour.