S.B. No. 256 Summary

• Increases Ohio's minimum wage to $12 per hour beginning January 1, 2025, $13 per hour in 2026, $14 per hour in 2027, and $15 per hour beginning January 1, 2028, with annual adjustments thereafter based on inflation.

• Allows employers to pay tipped employees at least half the minimum wage if tips combined with wages equal the required minimum wage, and permits reduced federal minimum wage rates for employees under 16 and businesses with annual gross receipts of $385,000 or less (adjusted for inflation).

• Modifies the state earned income tax credit to allow taxpayers to elect either a 30% nonrefundable credit or a 12% refundable credit (or 9% for most taxpayers) of the federal credit, with enhanced refundable credit rates for taxpayers with dependents under age three.

• Establishes comprehensive employee protections including employer record-keeping requirements for three years, employee rights to request and receive pay information within 30 days, complaint procedures, and civil enforcement with damages calculated as two times back wages plus additional penalties for retaliation.

• Declares the act an emergency measure effective immediately to provide financial relief to Ohio employees.