Ohio Minimum Wage Will Increase in 2026 Under New Proposal
Ohio’s minimum wage currently sits at $10.70 for non-tipped employees and $5.35 for tipped employees. A newly introduced Senate Bill 234 would push the wage to $12 per hour starting January 1, 2026, with annual increases reaching $15 per hour by 2029. The proposal also seeks to eliminate the separate tipped employee wage, requiring all workers receive the same base pay.
Supporters argue the plan would give working Ohioans more purchasing power and reduce poverty. They believe the jump to $15 over time would help families keep up with the rising cost of living. Critics warn the wage hikes could strain small businesses, raise employment costs, or encourage layoffs.
The bill would set the frame for future adjustments: starting in 2029, the state commerce director would adjust wages each year based on inflation. Under the proposal, Ohio would follow automatic indexing to the consumer price index in an effort to prevent wage erosion over time.
This plan departs from Ohio’s current wage law, which mandates annual increases tied to inflation under a constitutional provision approved in 2006. Lawmakers must now debate whether the phased increase and tipped wage elimination will pass the legislature or face legal challenges.
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