By: Holly Allen
As we flip our calendars to a new year, there’s a good chance your business’s payroll practices will be in for a change. January 1 will bring with it increases in minimum wage for some states, including Ohio, and a new rule from the Department of Labor that creates new requirements for the way you offer overtime.
The State of Ohio is among many states that will see an increase to minimum wage rates at the start of 2020. Ohio’s rate for non-tipped employees will increase to $8.70 per hour from the $8.55 per hour mandate in 2019. Although the federal minimum wage remains at $7.25 per hour, employers that have $319,000 or more in annual gross receipts are required to offer the higher rate.
Ohio’s increase is the result of an amendment passed in 2006 that allows for its minimum wage to reflect inflation from from the previous year.
Other states that will experience a minimum wage increase on January 1 are:
|2020 Minimum Wage Increase|
|District of Columbia||New York|
Human Resources professionals should check with their payroll provider to ensure changes have been made to comply with the transition to an increased minimum wage. If you’re in need of guidance, you may view chamber member HR consultants in the Chamber Member Directory.
Find much more information on the minimum wage increase in Ohio and other states, in this article done by chamber member Horizon Payroll Services.
After much debate, the Department of Labor settled on a new rule for certain exempt white collar employees in 2019, and those changes go into effect January 1, 2020.
This change applies to exempt executive, administrative, professional and computer employees as well as those considered highly compensated employees.
The first step is to decide which, if any, of your employees fall into these categories. Dayton Area Chamber of Commerce member Horizon Payroll has provided more detailed steps for making this determination, and what the changes mean for your business. Read more.