Ohio Minimum Wage and Tip-Credit Rules: What Hospitality Workers Need to Know

Ohio Minimum Wage and Tip-Credit Rules: Key Takeaways

• As of January 1, 2025, Ohio's minimum wage is $10.70/hour for non-tipped employees, and $5.35/hour base wage for tipped employees.
• Employers can take a tip credit up to $5.35 if total earnings meet or exceed the $10.70 minimum wage.
• Tipped employees must receive more than $30/month in tips and be notified in advance for tip credit eligibility.
• Tip pooling is allowed among tipped staff, but managers and owners cannot participate.

Ohio hospitality workers need to understand the latest minimum wage changes and tip-credit rules affecting their pay.

This guide explains Ohio's minimum wage, tip credit, tip pooling, and compliance requirements for the hospitality industry.

1. Ohio Minimum Wage and Tip Credit Basics for Hospitality Workers

Effective January 1, 2025, Ohio sets the minimum wage at $10.70 per hour for employees not receiving tips.

For tipped employees like servers and bartenders, Ohio allows a base wage of $5.35 per hour. Employers may apply a tip credit up to $5.35 per hour toward the minimum wage.

The tip credit means the employee's tips plus their base wage must total at least $10.70 per hour. If tips fall short, the employer must pay the difference.

Learn more about how to hire a bartender to ensure compliant and efficient staffing of tipped positions.

Qualifying as a Tipped Employee in Ohio

To qualify for this tip credit, employees must customarily and regularly receive more than $30 per month in tips.

This includes servers, bartenders, and potentially bussers who receive direct tips.

Employers are required to notify employees beforehand of their intent to take the tip credit. Without such notice, employers must pay the full minimum wage directly.

Discover effective server training manual templates to help your staff succeed and comply with tip credit rules.

2. Ohio Tip Pooling Rules for Hospitality Businesses

Ohio permits tip pooling, which allows tipped employees to share tips among others who regularly receive tips, such as bussers and bartenders.

This encourages equitable sharing but excludes managers, supervisors, and owners from participating in any tip pool.

Employers must ensure tip pooling practices comply with both Ohio state laws and federal regulations to prevent legal issues.

Explore the ultimate tip pooling spreadsheet template to manage tip distribution effectively.

3. The 80/20 Rule and Non-Tipped Duties in Ohio Hospitality

Under Ohio law, tipped employees should spend no more than 20% of their working time performing non-tipped duties, such as cleaning or prep work.

If an employee spends more than 20% of their time on these tasks, the employer must pay the full minimum wage for that portion of time.

This rule ensures tipped employees are fairly compensated for work that does not generate tips.

4. Compliance Requirements and Recordkeeping for Ohio Hospitality

Employers must keep accurate records of tips reported by employees, including amounts and dates of service.

If tip pooling is practiced, detailed records of the pool arrangement and distribution must be maintained.

Failure to comply with these conditions can result in fines up to $1,162 per violation, and employees may pursue legal remedies to recover unpaid wages.

For more on managing tipped employee pay and compliance, see our career resource for the bartender job description.

5. Ohio Minimum Wage and Tip Credit Future Outlook for Hospitality Workers

Although there have been efforts in Ohio to eliminate the tip credit and increase the minimum wage to $15 per hour, these initiatives have not succeeded as of 2025.

This means the current tip credit system remains in place for hospitality workers in Ohio.

Employers and employees should monitor legislative updates to stay informed of any future changes.

6. Best Practices for Ohio Hospitality Employers to Comply with Tip Laws

• Provide clear, written notice to all tipped employees about the tip credit and base wage before withholding any tip credit.
• Ensure tipped employees consistently receive total pay (wages plus tips) at or above $10.70 per hour.
• Maintain thorough records of tips earned, tip pool distributions, and any wage adjustments for excess non-tipped duties.
• Exclude managers and supervisors from tip pools and properly classify employees performing tipped versus non-tipped duties.
• Regularly audit tip pooling arrangements and wage payments to avoid compliance violations.

Discover best practices in how to hire a restaurant manager for effective staffing and compliance with wage laws.

7. Useful Resources for Ohio Hospitality Workers and Employers

• U.S. Department of Labor – Fair Labor Standards Act (FLSA): https://www.dol.gov/agencies/whd/flsa
• Ohio Department of Commerce – Division of Industrial Compliance: https://com.ohio.gov/dico
• Ohio Revised Code – Minimum Wage Standards: https://codes.ohio.gov/ohio-revised-code/chapter-4111

Learn more about managing labor with insights from restaurant staff hiring strategies.

Ohio Minimum Wage and Tip-Credit Rules: Conclusion

Ohio hospitality workers benefit from a legally established minimum wage and tip credit structure designed to protect earnings while managing tipped work compensation.

By understanding the $10.70 minimum wage, $5.35 tip credit base wage, tip pooling policies, and the 80/20 rule on duties, hospitality employers and employees can ensure compliance and fair pay.

Providers must maintain proper notices and records to avoid penalties and foster a transparent workplace that values tipped employees fairly.

For additional insight, consider reading about the responsibilities of restaurant owners when managing tipped staff.