COLUMBUS, Ohio - Ohio's minimum wage officially increases beginning January 1, 2020.

Currently, Ohio's minimum wage is $8.55 per hour for non-tipped employees; this will be increasing to $8.70 per hour.

Tipped employees currently make $4.30 per hour and will increase to $4.35 per hour. 

The minimum wage will apply to employees of businesses with an annual gross of more than $319,000 per year.

The Ohio Constitutional Amendment passed in November 2006 states Ohio's minimum wage shall increase on Jan. 1 of each year by the rate of inflation.

The state minimum wage is tied to the Consumer Price Index (CPI-W).

This CPI-W index increased by 1.5 percent from Sept. 1, 2018, to Aug. 31, 2019.

For employees at smaller companies grossing less than $319,000per year, and for 14 and 15-year-olds, the state minimum wage is $7.25 per hour.

That hourly rate is tied to the federal minimum wage of $7.25 per hour, which requires an act of Congress and the President's signature to change.