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Ohio State Labor Laws for Business Owners

Ohio Labor Law Guide

Ohio is located in the Midwest region of the United States. In 2023, the state had a population of approximately 11.8 million people and a gross domestic product (GDP) of $730 billion USD. Ohio’s economy is diverse, with key sectors including manufacturing, healthcare, agriculture, and finance. The state is also home to a growing technology sector and a robust transportation industry. Ohio is considered moderately business-friendly, offering competitive tax rates and a balanced regulatory environment.

 

Ohio

Minimum Wage

$10.45 per hour (for large employers)

Overtime Wage

1.5x regular rate for hours > 40 per week

Meal Breaks

None required

Rest Breaks

None required

Minimum Wage Mandates

Ohio has its own state minimum wage law. As of 2024, the minimum wage for large employers (annual gross receipts of more than $385,000) is $10.45 per hour. For small employers, Ohio follows the federal minimum wage of $7.25 per hour. There are no counties or cities with a higher minimum wage than the state mandate.

Minimum wage for tipped employees is $5.25 per hour.

Overtime Rules

Ohio follows federal overtime regulations. Non-exempt employees are required to be paid 1.5 times their regular hourly rate for any hours worked over 40 in a workweek. There are no daily overtime requirements.

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Alternate Workweek Agreements: Ohio does not have specific provisions for alternate workweek agreements, but these arrangements are allowed as long as they comply with federal guidelines.

Exemptions: Certain employees, such as those in executive, administrative, or professional roles, may be exempt from overtime if they meet specific salary and duties tests.

Meal and Rest Breaks

Meal Breaks: Ohio law does not require employers to provide meal breaks for adult employees. However, it is common practice for employers to offer a 30-minute unpaid meal break for shifts longer than 6 hours.

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Rest Breaks: Ohio does not mandate rest breaks for employees. Nonetheless, many employers provide short paid rest breaks, typically 10 minutes for every 4 hours worked.

Rules for Young Employees: Ohio law requires employers to provide a 30-minute uninterrupted meal break for employees under 18 who work more than 5 consecutive hours. Employers must also comply with federal child labor laws as outlined in the Fair Labor Standards Act (FLSA), which imposes additional restrictions on hours and working conditions for minors.

Paid Leaves and Time Off

Paid Sick Leave Laws: Ohio does not have a statewide paid sick leave mandate. Employers may offer paid sick leave, but it is not required by law.

Accrual and Usage of Sick Leave: In the absence of a state mandate, sick leave accrual and usage policies are determined by the employer.

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Paid Time Off (PTO) Laws: Ohio does not require employers to provide paid time off (PTO) for vacations or personal time. However, employers who offer PTO must adhere to their internal policies and any relevant employment contracts.

Other Leave Laws:

  • Jury Duty Leave: Employers must provide unpaid time off for employees serving on jury duty.

  • Parental Leave: Ohio follows the federal Family and Medical Leave Act (FMLA), providing eligible employees up to 12 weeks of unpaid leave for the birth or adoption of a child, or to care for a seriously ill family member.

  • Bereavement Leave: Ohio law does not require bereavement leave, though many employers offer it voluntarily.

  • Voting Leave: Ohio law requires employers to provide reasonable time off for employees to vote. Employers are not required to pay employees for time spent voting.

FMLA Eligibility: Employees who have worked for a covered employer for at least 12 months and have worked at least 1,250 hours in the previous year are eligible for FMLA leave.

Exempt vs. Non-Exempt Classification

Exempt Employees:

  • Salary Basis: Exempt employees must be paid on a salary basis.

  • Salary Level: As of 2024, the minimum salary for exempt employees under federal law is $684 per week.

  • Duties Test: Exempt employees must perform executive, administrative, or professional duties to qualify as exempt. Ohio follows federal guidelines for determining exempt status.

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Non-Exempt Employees:

  • Hourly Pay Rules: Non-exempt employees must be paid at least the state or federal minimum wage, whichever is higher.

  • Overtime Wage Rules: Non-exempt employees are entitled to overtime pay at 1.5 times their regular rate for all hours worked over 40 in a workweek.

Equal Pay Act

The federal Equal Pay Act mandates equal pay for men and women performing substantially similar work. Ohio does not have a state-specific equal pay law but follows labor laws created by the federal government to prevent gender-based wage discrimination.

Employers must also comply with Title VII of the Civil Rights Act of 1964, which prohibits discrimination in employment based on race, color, religion, sex, or national origin.

Rules for Hiring and Firing Employees in Ohio

At-Will Employment: Ohio is an at-will employment state, meaning that either the employer or the employee can terminate the employment relationship at any time for any lawful reason.

Anti-Discrimination Laws: Ohio’s Civil Rights Act prohibits discrimination in hiring, firing, and other employment decisions based on race, religion, sex, disability, age, and other protected characteristics.

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Equal Employment Opportunity (EEO) Act: Ohio follows federal and state EEO regulations, ensuring that employers provide fair and equitable treatment to all employees.

Background Verification Rules: Employers in Ohio can conduct background checks but must comply with the Fair Credit Reporting Act (FCRA) and other relevant federal and state laws concerning the use of criminal or credit history in hiring.

Work Eligibility Verification Rules: Employers must verify that employees are authorized to work in the United States by completing the federal I-9 form.

Final Paychecks: Ohio law requires employers to issue final paychecks on the next scheduled payday after the employee is terminated or leaves the company.

Unemployment Compensation Rules: Employees who are terminated without cause may be eligible for unemployment benefits if they meet the state’s eligibility requirements.

Compliance with WARN Act: Ohio employers must comply with the federal Worker Adjustment and Retraining Notification (WARN) Act, which requires 60 days’ notice before large-scale layoffs or plant closures.

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