Around 150,000 of the 5.5 million workers in Ohio will get a 30-cent increase come Jan. 1 when the minimum wage rises to $11 an hour. Tipped employees will get $5.35 an hour. The federal minimum wage is still $7.25, where it's been since 2009. The increase is due to the voter-passed initiative in 2006 that requires the minimum wage to keep up with inflation.
The federal minimum wage is still $7.25, where it's been since 2009.
“Those who are slightly above the minimum wage will get a bump up," said Heather Smith, work and wages researcher for Policy Matters Ohio. But she said the increase that was mandated in the 2006 initiative will help other low-income workers, because employers need to adjust their index for other low income jobs that are based on the minimum wage.
“Each year, the minimum wage will increase the amount that inflation has increased for the year prior," Smith said. "So that has increased the value of the minimum wage in Ohio substantially over the last 20 years. It started out at $6.85 back in 2007 and so what we have now, the $11 an hour that will be starting in 2006, has the same purchasing power that that $6.85 did back in 2006.”
But Ohio Chamber of Commerce CEO Steve Stivers said it's market forces that are driving employee earnings higher than the government mandated wage.
“The wages that are driven by the free market are going up more than the government force rate of 2.8%. On average, wages went up 3 to 3.5%," Stivers said.
There's been an attempt to put an initiative on the statewide ballot to raise the minimum wage to $15 an hour, a proposal the chamber opposed. And even though that is not expected to being on the ballot this coming year, Stivers said his group would oppose it again.
“We would come out against that again," Stivers said. "We believe the best way to increase somebody’s wage is to increase their skills and we do think there are certain jobs that frankly the economics don’t work at a $15 an hour wage.”
Stivers said the best way for Ohioans to raise their pay is to learn valuable skills. And he said there are many free or low-cost programs available to Ohioans who want to do that by contacting some of the organizations listed below.
Free or low-cost Ohio upskilling resources:
- OhioMeansJobs Statewide workforce system offering free career planning, skills assessments, resume tools, and access to training programs. Website: https://ohiomeansjobs.ohio.gov
- Individual Microcredential Assistance Program (IMAP) Provides Ohio residents with free access to short-term, industry-recognized credentials in high-demand fields. Website: https://highered.ohio.gov
- Workforce Innovation and Opportunity Act (WIOA) Federal program administered locally that can fully fund training for eligible adults and dislocated workers. Website: https://www.workforce.ohio.gov
- Aspire Adult Education Free education and workforce training programs including digital skills, workplace readiness, and credential preparation. Website: https://highered.ohio.gov/aspire
- Goodwill Industries of Central Ohio Free job training, digital skills programs, certifications, and career coaching. Website: https://www.goodwillcolumbus.org Per Scholas (Ohio Locations) Tuition-free technology training programs leading to industry certifications and employment. Website: https://perscholas.org
- Ohio Small Business Development Centers (SBDC) Free workshops and advising on business, finance, marketing, and management skills. Website: https://clients.ohiosbdc.ohio.gov
- Ohio Public Libraries / Ohio Web Library Free access to online learning platforms, career resources, and digital skills training using a library card. Website: https://ohio.gov/wps/portal/gov/site/government/resources/ohio-web-library
