Ohio’s minimum wage will rise Jan. 1, giving Logan County employers a firm date to review pay rates before the new year. For businesses covered by the state’s higher minimum, the change affects payroll calculations, employee communication and the cost assumptions used to prepare 2027 operating plans.

The Ohio Department of Commerce lists the new hourly rates as $11.40 for employees who do not receive tips and $5.70 plus tips for tipped employees. The current rates are $11 and $5.50, respectively. The increases therefore amount to 40 cents and 20 cents per hour in direct wages.

The adjustment follows an inflation formula in Ohio’s constitution rather than a separate annual vote on a new wage law. The constitution requires the state rate to be adjusted for inflation, with the increase taking effect the following January. That makes autumn a recurring opportunity for employers to review the next year’s requirements.

Coverage still matters. Ohio has provisions for smaller employers, workers younger than 16 and other exemptions. Business owners should confirm which rules apply to their employees instead of assuming every position falls under the same rate. The Department of Commerce’s wage and hour office can help address questions about the applicable requirements.

For tipped employees, the posted cash wage is only part of the calculation. The state’s official poster explains that an employer using the tip credit must be able to show that cash wages and the tip credit together meet the applicable minimum wage. A payroll change therefore needs to account for the supporting records as well as the hourly setting.