COLUMBUS, Ohio – Thousands of Ohioans who work for minimum wage are getting a raise with the new year.
On Jan. 1, the state’s minimum wage for non-tipped employees will be increased by 10 cents to $7.95 an hour under a constitutional amendment approved by voters in 2006, which indexes the wage to inflation. The Consumer Price Index increased 1.5% from September 1, 2012 to August 31, 2013.
The minimum wage for tipped workers increases five cents to $3.98 an hour, according to the Ohio Department of Commerce.
The Ohio AFL-CIO was part of the coalition that worked toward approval of the amendment, but the labor union’s president says the dime-an-hour raise is less than the workers deserve.
“This is not nearly enough to achieve a livable wage for many workers but any and all upward pressure on wages is better than the stagnant wages we have seen. There is a direct economic benefit to the increase as these wage earners will spend directly into our communities and local economies,” Tim Burga said.
Burga pointed to a report by the Dayton Daily News, which said that workers at some of Ohio’s largest employers, such as Walmart, Bob Evans and McDonalds, increasingly relied on public assistance such as food stamps and Medicaid.
The increases come amid a growing call for an increase in the federal minimum wage to around $10 from the current $7.25.
Opponents of the increase say it would lead to layoffs and higher prices.
Ohio is among 13 states where the minimum wage is being increased on Jan. 1. Oregon has the highest wage on the list at $9.10 an hour.
Ohio’s minimum wage law applies to businesses with annual gross receipts in excess of $288,000. Employees of smaller companies and 14- and 15-year-olds must be paid the federal minimum wage and any increase would require congressional action.