CINCINNATI — Hundreds of thousands of Ohioans are in line for bigger paychecks starting New Year's Day. The state minimum wage will rise by 80 cents in 2023, a welcomed raise for many. But it could impact some employers and customers.
Floyd Walker, co-owner and operator of Happy's Pizza in College Hill, hung new posters from the state of Ohio explaining the new minimum wage of $10.10/hr for non-tipped employees.
"I want to keep our employees happy," he said. "My upper management, we're talking about it right now to figure out, 'How do we keep them?'"
The minimum wage raise is a direct response to inflation. A 2016 state constitutional amendment passed by voters requires the state's minimum wage to increase by the rate of inflation on Jan. 1 of each year. The Consumer Price Index for urban wage earners and clerical workers determines the minimum wage. The CPI rose by 8.7% between September 2021 and August 2022.
Across the country, 29 states raised wage floors too.
With margins still thinned by rising food and supply prices, Walker said customers could pay more.
"There are going to be some things that have to go up," he said. "Gas prices (are) coming down, but (they're) not coming down where it makes it better for our delivery drivers. So, we have to pay our delivery drivers more because of gas."
Walker is hardly sour. His business has seven employees with five openings. He believes the new wage law addresses his business' biggest struggle: hiring and holding on to workers.
"I think it will help me keep them because they're looking forward to (better pay)," he said. "Plus, we do give bonuses. We try to make sure every quarter that if we're doing well that they get a bonus from the quarter."
According to the Economic Policy Insitute, nearly 200,000 people in Ohio make less than $10.10/hr and stand to benefit. However, EPI expects nearly 300,000 more to get bigger checks as employers adjust pay scales.
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