2026 Ohio Minimum Wage & 50% Tip Credit
In Ohio, standard overtime is governed by both state law and the federal FLSA. Employees must be paid 1.5 times their regular hourly rate for any hours physically worked beyond 40 in a continuous workweek. Like most midwestern states, Ohio does not require daily overtime. To keep track of your 40-hour threshold, we recommend using a weekly time card calculator.
Ohio's minimum wage is tied to the Consumer Price Index (CPI) and adjusts annually on January 1st. For 2026, the estimated standard minimum wage is $10.70 per hour (always verify the final official rate with the Dept. of Commerce).
The 50% Tipped Worker Rule
Ohio has one of the most straightforward tip credit laws in the country. Employers are allowed to take a tip credit equal to exactly half (50%) of the state minimum wage. For a $10.70 minimum wage, the tipped cash wage is strictly $5.35 per hour. If your tips don't make up the other $5.35, the employer must pay the difference.
| Calculation Step | Amount |
|---|---|
| Standard Minimum Wage (OH) | $10.70 / hr |
| Maximum Tip Credit (50%) | -$5.35 / hr |
| Minimum Cash Wage (Regular) | $5.35 / hr |
| Overtime Multiplier ($10.70 × 1.5) | $16.05 / hr |
| Minimum Cash Wage (Overtime) ($16.05 minus the $5.35 tip credit) |
$10.70 / hr |
The $385,000 Small Business Loophole (And How to Beat It)
There is a massive loophole in Ohio labor law that many employers abuse. If a business grosses less than a specific threshold (adjusted annually, roughly $385,000 for 2026), that business is exempt from the Ohio State Minimum Wage Law. They are only required to pay you the federal minimum wage of $7.25 per hour.
"My boss says because we are a small business under the revenue cap, he doesn't have to pay me overtime. Is this true?"
Usually, NO. This is the most common lie told to workers in small Ohio gas stations, retail shops, and diners. Even if the business is exempt from Ohio state law, they are almost certainly still covered by the Federal Fair Labor Standards Act (FLSA).
Under the FLSA, if your specific job duties involve "Interstate Commerce," you are federally guaranteed 1.5x overtime pay for hours over 40. "Interstate Commerce" is broadly defined. You qualify if you:
- Process credit card transactions that route through out-of-state banks.
- Handle goods, food, or inventory that was manufactured outside of Ohio.
- Make phone calls or send emails to out-of-state customers or suppliers.
If you suspect your employer is illegally denying you overtime using the small business excuse, use our standard overtime calculator to see what you are owed under federal law.