Loveland and Milford employers will need to adjust payroll before a 40-cent minimum wage increase takes effect across Ohio on Jan. 1, 2027.

Non-tipped workers will earn $11.40 per hour, up from $11. Tipped employees will see their base rate rise from $5.50 to $5.70. The Ohio Department of Commerce's Bureau of Wage and Hour Administration announced the 3.5% increase on Wednesday, Sept. 30.

The raise is automatic. Ohio voters approved Constitutional Amendment II-34a in November 2006, tying the state minimum wage to inflation each year. The bump reflects the Consumer Price Index for urban wage earners and clerical workers, known as the CPI-W, over the 12 months ending Aug. 31, 2026, as WLWT reported.

No legislative vote is required.

The business-size threshold is changing too. The Ohio minimum wage will apply to employers with annual gross receipts above $420,000, up from $405,000. Businesses below that line, along with 14- and 15-year-old workers, remain subject to the current federal minimum wage of $7.25 per hour, according to the Department of Commerce. Any change to the federal rate would require an act of Congress and the president's signature.

The increase lands in a region where restaurant and retail operators have already been navigating tight margins. The Greater Cincinnati area saw 61 restaurant and bar closures in 2025, according to Fox 19. Operators cited rising costs and labor expenses. In Loveland, Branch Hill Coffee closed that year, pointing to rising rent and fewer customers. Daughter's Pizza Kitchen in Milford shut down after six months.

The region also added 107 new dining spots in 2025, Fox 19 reported. E+O Loveland opened at 115 S. Karl Brown Way.

The Department of Commerce said employers must display the official 2027 minimum wage poster once the new rate takes effect. The poster is available through the Division of Industrial Compliance website, according to the Shelby News Reporter.

Ohio's next annual wage adjustment will be announced in fall 2027, again based on the CPI-W.