Blog · Payroll Management
Ohio Minimum Wage 2026: Rates by Employer Size
Ohio's 2026 minimum wage is $11.00 per hour for employers grossing $405,000 or more annually, and $7.25 below that threshold, per the U.S. Department of Labor's state minimum wage chart.
Ohio ties its minimum wage to employer size, measured by gross annual receipts, which makes correct classification an important payroll compliance step. This guide covers Ohio's rate structure, the annual adjustment schedule, and overtime rules for 2026.
Ohio Minimum Wage Rates for 2026
| Wage Floor | Hourly Rate |
|---|---|
| Ohio minimum wage (employers grossing $405,000+) | $11.00 |
| Ohio rate for smaller employers | $7.25 |
| Federal minimum wage (FLSA) | $7.25 |
| Scheduled adjustment | Adjusted annually by formula |
Ohio's minimum wage is adjusted annually by formula, so the rate that applies in 2026 will not necessarily be the same rate in 2027. Employers should verify the current figure each year rather than relying on a prior year's number.
The $405,000 Gross Receipts Threshold
Ohio's higher minimum wage applies only to employers with gross annual receipts of $405,000 or more. Employers below that threshold are required to pay only the federal minimum wage of $7.25 per hour. Correctly classifying your business against this threshold is essential, since paying the wrong rate in either direction creates compliance risk. Confirm your current classification and the exact threshold figure with the Ohio labor office, since the number itself can be revised.
Overtime Rules in Ohio
Ohio follows the standard weekly overtime rule: non-exempt employees earn 1.5x their regular rate of pay for hours worked over 40 in a workweek. There is no daily overtime threshold under Ohio law.
Paid Sick Leave and Paid Family Leave
Ohio does not currently require paid sick leave or operate a state paid family and medical leave (PFML) program. Employers rely on federal FMLA protections where applicable, along with any voluntary leave benefits they choose to offer.
Tipped Employees and Local Ordinances
Ohio permits a tip credit for qualifying tipped employees, with a lower direct cash wage allowed as long as tips bring total pay up to at least the applicable minimum wage. Because tipped wage rules and gross receipts thresholds are both subject to annual revision, confirm current figures through the DOL state labor office contacts page rather than relying on a fixed number.
What This Means for Payroll Compliance
Ohio payroll compliance means correctly classifying your business against the gross receipts threshold, applying the right wage rate for each employee, tracking the annual rate adjustment, and calculating overtime correctly. Getting the threshold classification wrong is the most common Ohio compliance mistake, and it directly affects every paycheck.
BEG's managed payroll service applies Ohio's threshold-based wage rules and annual rate adjustments automatically at every payroll close, so your team is not tracking formula changes manually.
Ohio Payroll, Handled.
BEG manages payroll at $25-$45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
What is the Ohio minimum wage in 2026?
Ohio's minimum wage in 2026 is $11.00 per hour for employers with gross annual receipts of $405,000 or more. Employers below that threshold pay the federal minimum of $7.25 per hour.
Why does Ohio have two different minimum wage rates?
Ohio ties its higher minimum wage to a gross receipts threshold. Employers grossing $405,000 or more annually must pay the state rate, while smaller employers below that threshold follow the federal minimum instead.
Does the Ohio minimum wage change every year?
Yes. Ohio adjusts its minimum wage annually by formula, typically tied to inflation. Employers should check the current rate each year rather than assuming it stays flat.
What is the overtime rule in Ohio?
Ohio follows the standard weekly overtime rule: 1.5x the regular rate of pay for hours worked over 40 in a workweek.
Where can Ohio employers confirm the current gross receipts threshold and rate?
The U.S. Department of Labor publishes a state-by-state minimum wage chart, and its state contacts directory links directly to the Ohio labor office for the current threshold figure and any local ordinance detail.
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and state-specific wage and hour requirements. Get instant pricing at beghr.com.
From the blog