As an employee working in Ohio, it’s essential for you to understand the tipped wage rules and your rights under state and federal laws. In Ohio, tipped employees are those who customarily and regularly receive more than $30 per month in tips.
Consider these points if you’re a tipped employee
As a tipped employee in Ohio, you are entitled to a minimum wage of $4.30 per hour as of 2023. This is called the tipped minimum wage and is lower than the regular state minimum wage of $10.10 because it accounts for the tips you receive.
Ohio employers are allowed to take a tip credit of up to 50%, which means they can pay you a lower base wage and count your tips toward meeting the regular minimum wage. Your employer is responsible for ensuring that your combined wages and tips meet or exceed the regular minimum wage.
If you work more than 40 hours in a week, you are entitled to overtime pay at 1.5 times your regular rate of pay. This is based on the full minimum wage for tipped employees, not the tipped minimum wage.
Your employer may require you to participate in a tip pooling or sharing arrangement, where tips are collected and redistributed among eligible employees. However, your employer cannot keep any portion of your tips and only employees who customarily receive tips can be included in the pool.
If you believe your employer is not paying you the required tipped minimum wage or not complying with the tipped wage rules, you can file a complaint about the matter. By understanding your rights and responsibilities as a tipped employee, you can ensure you are being paid fairly and protect yourself from wage violations.