Ohio Minimum Wage vs Tipped Minimum Wage in 2025: Key Facts for Employers and Workers

Ohio Minimum Wage vs Tipped Minimum Wage: Key Takeaways

• As of January 1, 2025, Ohio's non-tipped minimum wage is $10.70 per hour.
• The tipped minimum wage is $5.35 per hour, requiring total wages (base pay plus tips) to meet or exceed $10.70 per hour.
• Businesses with annual gross receipts under $394,000 and employees aged 14-15 are paid at the federal minimum wage of $7.25 per hour.

Understanding the key differences between Ohio's standard minimum wage and tipped minimum wage is essential for employers and employees across the state.

This guide explains recent updates, legal requirements, and compliance tips relevant to tipped workers and their employers.

Ohio restaurant owners can learn how to post jobs for tipped employees.

1. Ohio Minimum Wage Overview for 2025

Starting January 1, 2025, Ohio’s non-tipped minimum wage rate is set at $10.70 per hour for eligible employees working in businesses with annual gross receipts exceeding $394,000.

This is a slight increase from the 2024 rate of $10.45, reflecting a 2.4% inflation adjustment based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

The increase follows a 2006 constitutional amendment passed by Ohio voters that mandates annual minimum wage adjustments tied to inflation, ensuring wages maintain purchasing power over time.

2. Ohio Tipped Minimum Wage Explained

The tipped minimum wage in Ohio is significantly lower than the standard minimum wage, set at $5.35 per hour as of 2025. However, this does not mean tipped employees take home less pay.

Ohio law requires that employers supplement the employee’s earnings if the sum of the tipped wage plus tips received does not equal the full minimum wage of $10.70 per hour.

Effectively, tips act as a credit toward fulfilling the minimum wage requirement. Employers must carefully track tips to ensure compliance and must pay the difference whenever tips fall short.

For benchmarking, review average tipping percentages by state.

Who Qualifies as a Tipped Employee in Ohio?

A tipped employee is generally someone who regularly and customarily receives more than $30 per month in tips, examples include servers, bartenders, and certain hospitality staff.

Employees who do not qualify as tipped employees must be paid the full minimum wage without counting tips toward the wage.

Explore the server job description to see common tipped duties.

3. Application and Exceptions to Ohio Minimum Wage Law

Ohio’s minimum wage rates apply only to employees working for businesses with annual gross receipts exceeding $394,000.

For smaller businesses with gross receipts equal to or less than $394,000, the federal minimum wage of $7.25 per hour applies for both tipped and non-tipped employees.

Additionally, workers aged 14 and 15 are also exempt from state minimum wage increases and are paid at the federal minimum wage level.

Check Ohio-relevant age requirements for servers when scheduling minors.

4. Employer Obligations Regarding the Tipped Minimum Wage in Ohio

Employers must ensure that tipped employees’ combined hourly tips and base wage total at least $10.70 per hour for 2025.

If tips plus the tipped wage fall below this threshold, employers must compensate the difference as part of their regular payroll.

Review the bartender job description to align policies with day-to-day tip practices.

Failure to do so may result in violations of Ohio labor laws and potential penalties enforced by the Ohio Department of Commerce’s Bureau of Wage and Hour.

Employers are encouraged to maintain accurate tip records, communicate clearly with employees, and display required wage posters in the workplace.

Clarify policies with guidance on tip ownership rules.

5. Compliance Tips for Ohio Employers Paying Tipped Employees

• Post Notices: Display the official Ohio Minimum Wage poster to inform employees of their rights and current wage rates.
• Track Tips Accurately: Use point-of-sale systems or manual records to track daily tips earned by employees.
• Audit Regularly: Periodically review payroll records to ensure total hourly earnings meet or exceed minimum wage standards.
• Train Supervisors: Ensure managers understand wage and tip laws to avoid inadvertent violations.

See the cocktail server job description for role-specific tip-handling responsibilities.

6. Common Misconceptions About Ohio Tipped Minimum Wage

Some employers mistakenly believe paying the tipped wage alone suffices, regardless of tip earnings. This is untrue: if total earnings don’t reach or exceed the standard minimum wage, the employer must make up the difference.

Another misunderstanding is that all employees who receive tips are automatically tipped employees. Only those regularly receiving significant tips qualify for tipped minimum wage status under Ohio law.

Get detailed guidance on the minimum wage for servers.

7. Resources for Ohio Employers and Employees

For additional guidance, employers and workers can refer to the following resources:

• Ohio Department of Commerce’s Division of Industrial Compliance’s Bureau of Wage and Hour – official state wage information and employer resources.
• U.S. Department of Labor Fair Labor Standards Act (FLSA) – federal wage and hour laws including tip-credit rules.

For pay benchmarks, review waitress salary data.

Ohio Minimum Wage vs Tipped Minimum Wage: Conclusion

Ohio’s minimum wage laws distinguish between tipped and non-tipped employees by allowing a reduced base wage for tipped workers, provided their tips bring total compensation up to at least $10.70 per hour in 2025.

Employers must stay vigilant to comply with wage laws and ensure all workers earn at least the standard minimum wage, reflecting adjustments tied to inflation as required by state law.

Proper recordkeeping, employee communication, and use of official resources can help businesses maintain compliance and uphold fair pay practices.