Minimum wage in Ohio rises to $7.85 an hour

Tipped employees will receive a minimum wage of $3.93 plus tips.
Wire
Jan 2, 2013

 

Ohio entered 2013 Tuesday with a 15-cent raise in the state’s minimum wage to $7.85 an hour.

Ohio’s minimum hourly wage for non-tipped employees is linked to inflation under a state constitutional amendment Ohio voters approved in 2006. The new base wage will provide annual earnings of $16,328 — a $340 increase.

Tipped employees will receive a minimum wage of $3.93 plus tips. Employees younger than 16 must be paid no less than the federal minimum wage, which remains $7.25, unchanged since 2009.

Many companies simply accept periodic minimum wage increases as a cost of doing business. A mandatory minimum wage has been in force in the United States since 1938.

“Kroger budgets for expenses such as this,” said Kroger spokeswoman Rachael Betzler. “We will still continue to hire throughout the year as well. It’s a common thing we experience and plan for.”

Union officials and some liberal-leaning organizations welcome the wage increase. Non-profit research organization Policy Matters Ohio says the pay boost will help about 215,000 low-wage workers in Ohio.

According to the left-leaning Economic Policy Institute, nine states joined Ohio in raising mandatory base wages on Tuesday , leading to what the EPI says will be increased consumer spending that will boost gross domestic product by $43 million. Nearly 1 million workers total will benefit, according to Policy Matters Ohio and the EPI.

“This modest annual minimum wage increase will promote economic growth here and protect the real value of wages during the weak post-recession recovery,” Amy Hanauer, Policy Matters Ohio executive director, said in a recent statement. “Raising wages for those paid the least means more money is spent in our communities, and it means low-wage working families have just a little more in their paycheck to make ends meet.”

Ohio is one of about a dozen states that boost minimum wages by linking them to the rate of inflation or some cost-of-living measure. Ohioans seven years ago voted to change the state’s constitution so that the minimum wage moves with the Consumer Price Index, as tracked from August to August every 12 months.

“These rate increases keep the minimum wage in pace with inflation, and that wasn’t always the case when the decision was left to politicians,” Tim Burga, Ohio AFL-CIO president, said in a statement.

Smaller businesses and those on the conservative side tend to be more skeptical of mandatory pay raises. They argue that making the hiring of new employees more expensive may result in fewer new employees being hired, and that anything that hampers business in a soft economy is self-defeating.

“Raising the minimum wage to this high of a level sounds like another good intention, but it can have bad results,” said Greg McAfee, founder and owner of Kettering-based McAfee Heating & Air. “Many companies can’t afford to pay $7.85 to an employee who, because of lack of experience or training, may only be worth $6 per hour.

“I know there are some trying to support families on minimum wages, but I am not for our government mandating what any employer should pay or make, for that matter,” McAfee said.

New workers in the heating, ventilation and air-conditioning industry often see starting wages of $9 to $10 an hour, McAfee added.

Michael Saltsman, a research fellow with the Washington, D.C.-based Employment Policies Institute, warns that minimum wage increases “redistribute” income among low-wage families, with businesses often raising prices, cutting workers’ hours or doing a combination of both.

Low-income families end up worse off, Saltsman said. And businesses making only “a couple of cents on the dollar” profit margin — independent or small grocers, full- or limited-service restaurants and some retailers — will be harmed, he said.

“Essentially, you have some gaining at the expense of others,” he said.

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Thomas Gnau - Dayton Daily News, Ohio (MCT)

©2013 the Dayton Daily News (Dayton, Ohio)

Visit the Dayton Daily News (Dayton, Ohio) at www.daytondailynews.com

Distributed by MCT Information Services

 

Comments

KnuckleDragger

Get ready to pay more for that big mac. Remember folks, companies don't just absorb the cost of minimum wage hikes, the pass it to consumers or the outsource to china.

vicariouslyAlive

and the rolling snowball of inflation continues.

KURTje

Yeah.. that single mom is doing phenominal @ $7.85.

KnuckleDragger

First of all, if you can't support 'em you should keep your knees shut. Next, it is funny you bring that up. A recent study shows that a single mom with 2 children, working 40 hrs/wk actually pulls in closer to $18.00/hr. How is this? Well a family of three with a mom working a min wage job is eligible for the full gamut of gov't freebies. That's right, when you figure in free health insurance (medicaid avg $700/mo, housing subsidy (avg. $500/mo for a family of 3), utility subsidy (avg. $150/mo), SNAP (family of 3 min wage $400/mo), cash benefit (avg. $150/mo). The grand total is over $3100/mo. But let's dig further. Less than 5% of working single mom's work for min wage. The average is around $12/hr. The rest sit at home and live on the dole, collecting freebies on behalf of their children once their three yrs of free money runs out. What usually happens is that they start having more children on our dime to make up the difference.

truckin

Forgot the 3-4000 earned income credit and full tax withholding returns. That is why most welfare (single moms) hold atleast a part-time minimum wage job. even if 5 grand gross a year they will qualify for the earned i credit

Contango

I tend to tip the waiter/waitress at 20% in cash. What they wanna declare to "Uncle Sugar" is their business.

Most workers receive more than min. wage - just "feel good" politics.

Regardless, min. wage was a racist liberal ploy to keep them "people" in the South from migratin' up here and stealin' "decent people's" jobs.

It's obviously been effective since the national black youth unemployment rate is around 50%.

optimistic041

Sorry but what exactly do you mean by "them" people?? Do you mean the people who come up here and work 12-18 hour days of straight time in 90 degree weather? Doing jobs most people on welfare think they are too good to do! Or as you said "decent people's jobs" the decent people who won't even attempt to work at the farms? Don't you think if "decent people" actually applied for these jobs they would have to hire people from Down south. I feel sorry for closed minded people such as yourself.....

Contango

@ optimistic041:

"Totally" missed the point didn't ya?

Yea, min. wage is really working well for black unemployment isn't it?

What's the answer to get unskilled, school dropouts some work experience? Raise the min. wage to $50/hr.?

Maybe the govt. just needs to start hiring every person that wants a job and pay 'em a "living wage"?

Just tell Mr. Bernanke to print some more "greenbacks."

44846GWP

Winnie, you should be happy, you just got a raise! Love your hamburgers!

capcap

I would love to see some of you live on 7.85hr. After taxes and if you get 40hrs. Nothing is left..even if you where a single person and have to pay a 400 a month rent and a car payment and insurance, electric,cell phone. Yup you got it nothing left.

KnuckleDragger

I did it when I was 18 and 19 at $3.35/hr. It can be done. By the way things like a cell phone are not necessities.

Estrella Damm

Agree. I worked for $4.25 an hour, saved up, went to school, obtained a degree and became a contributor to society.

methodman

Then it sounds like its time to get a 2nd job. There aren't many people I know that can be successful by working 40 hrs a week, especially if they only make min. wage. Sorry but that's the way it goes. There's also alot of people out there willing to help a person, as long as that person is willing to help themselve.

truckin

Boo Hoo! apply yourself, seek advancement by working harder than your coworkers, learn a new trade or skill while "barely" surviving.. Stop waiting for that great income job to be dropped in your lap. Search. Learn. Apply. Relocate if need be. Is any of this new?

Contango

@ capcap:

Yep, after a while, the govt.'s decades old practice of making the currency increasingly worthless starts to add up.

Hang on 'cause the cost-of-living through inflation is only gonna get worse.

H*ll, someday a min. wage of $50 @ hr. might not be enough.

onegirlarmy

heck i worked at stinky agri general while pregnant with my youngest daughter puking my gutts 6pm-6am 6 days a week for 4.25 an hr...then later in life did anything i could to support my family and pay for my schooling...then i worked climbing telephone poles for 14yrs @ 7.75hr risking my life so this here service is here for all you complainers!!!
it is what you make it people!!!
whatever the minimum is you still gotta work your a$$ off

starryeyes83

The on site USDA inspectors would never have allowed 12 hour shifts on production without at least a 2 hour clean up to hose machines and critical areas down. No way. I know that for a fact, I was there several years. And all the water hosing and air hosing was done after night shift got off usually around 2:30 - 3 am. Day shift started at 7 am when I was there. And I never ever seen girls working in the back on loading crew. And the office people went home around 5 pm.

And there ain't nothing stinkier or louder than an egg exploding in your hand when ya see a bad one come thru that candling booth. That friggin thing sounded like a shotgun blast.....

truckin

So lets get this straight? You drop out of school or just want to exist? never needing to pass a urine test. sit and spin on your finger, want NO responsibility, want NO part of a learning a trade, skill, or seek promotions. Flipping burgers/making pizza's/pickin' melons is just fine? and in the last 20 yrs your disposable income has DOUBLED????? and still not out of poverty which means ALL gov assistance at your disposal, plus tax returns way above any contributions. Even a teenager at home has more disposable income to buy bad habit forming products. All on the backs of people who strive to try and do better, climb up the ladder.... Has anyone else's profession doubled it's wage in the past 20 yrs?? Nurse's who made 22hr now 28. wow. auto workers 25hr now 30? wow. Even beloved local factories what paid 9hr 20 yrs ago what 12 now? Basically have been closing the gap between middle income and brain dead poverty employee.. till were all just one happy "EVEN" society.THE END.

truckin

think people..another twenty years at this rate and poverty braindead employment will only be around half as much trades, skilled workers wages.?? then another 20 yrs??? who is the stupid (braindead) ones?

jon491

ALL THE HATE IN YOUR HEARTS .

onegirlarmy

right!!?!i said good day and keep on truckin!!:)

KURTje

Show your ignorance & or age. Or deny folks on the East Coast needed $$ but willing to help other countries with aid.......amazing.

Dr. Information

Sandy bill had way to much pork or it would of passes cURT......but that's probably ok by you. Just spend and don't ask what's in it.

former local

Yeah, that poor heating and air guy gets what, $80 for a half hour service call, pays his employee $9-$10/hr. Yeah, not much profit in that. I feel real sorry for him!

AlterEgo

A lot more comes out of that $80 than just the employees salary. Add 4 to 5 bucks in taxes the employer pays, then there is the vehicle payment, the building rent, the inventory and supplies not to mention all of the hours he pays that employee that are not actually billable. Economics and cost accounting should be required courses for all high schooles. If this was the case less people would make stupid comments like former local makes.

believe it

I'm glad AlterEgo made some sense here. People apparently don't understand all the other costs that go into owning a business. Even if a service call costs $80 and he pays his helper $10, that guy isn't profiting $70. Looks like to me a lot of people in this world need to take some business classes.

Contango

@ former local:

There are greedy HVAC owners where you live? Move back.

luvblues2

That's what they get on the East Coast for turning away non-union workers away that were trying to help them get their lives back in some semblance of normalcy.

KURTje

Christian Science Montior/entitelement test. Interesting. On local levels - ewg.org you people could learn if your eyes were opened, or if you ever left Huron County and got out a bit....

Dr. Information

Its easy to see the business owners vs the non business owners posting on here. Most people think small business's are raking in the cash and blindly forget about all the expenses on the other end.

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