There has been a lot of debate about minimum wage increment since the great depression. Most economists argue it increases the rate of unemployment but many states across the country have recently raised their minimum hourly wage. Perhaps this is because of the recession but there’re many factors that regulate the same including economic growth, age and geographical variances.
As a result of these and after a lot of pressure from the civil service, now there’s something new in Ohio State Labor Poster. Beginning next year, the minimum wage will increase from $8.10 to $8.15 for non-tipped workers and $4.05 to $4.08 for tipped workers. This will only apply to the companies with an annual receipt over $297,000. This won’t however affect minors who are 14 and 15-year old.
The new Ohio State labor poster, which will be on your office walls starting January 1st comes as a constitutional amendment that ties the hourly pay to inflation. Generally, inflation is the rate of increase in prices for goods and services. It’s calculated as an annual percentage increase. It’s the opposite of deflation. According to the U.S Inflation Calculator, it currently stands at 1.5 percent.
Retail Price index (RPI) and Consumer Price index (CPI) are some of the most common forms of inflation. The latter, which rose 0.7 percent by end, last year was the other major consideration in the Ohio minimum wage increase. This is the weighted average of prices of essential goods and services. It is calculated by taking price increase for each item in the basket and averaging them.
Annual rate of inflation on the other hand is calculated using a 12-month selection of the BLS’s CPI. For instance, if you want to know the inflation rate for last month, take its CPI and subtract from that of the same month the previous year then dividing the answer with the latter CPI and multiplying the figure by 100%. The Ohio minimum wage of the minors is tied to the federal law
It is not easy to tell for sure how the 5 cent Ohio minimum wage increase was arrived at because that would depend on the accurate figures held by the state. However, generally the calculation is provided as a public service by the federal Department of Labor in line with section 14(c) of Fair Labor Standards Act (FLSA) regulations. Check out the new Ohio State Labor Poster in January.