Ohio Labor Laws

Ohio Minimum Wage

As of January 2021, the minimum wage in Ohio is $8.80 per hour. For tipped employees, the base wage is $4.40 per hour before tips are factored in.

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History of Ohio Labor Laws

Ohio has a rich history of labor organization and labor rights protection. The first recorded strike dates back to 1899 with the Streetcar Strike.

Even earlier, Ohio was among the pioneering states to restrict child labor. In 1852, the state limited the hours children could work and prohibited those under 12 from working in mines. By 1921, the Bing Act mandated that children attend school until the age of 18.

In 1953, Ohio adopted a minimal right-to-work stance, allowing workers to opt out of joining a union while still requiring unions to represent all employees.

Throughout the latter part of the 20th century, Ohio’s labor laws became more settled, focusing on straightforward wage-and-hour regulations. In the early 21st century, minimum wage concerns have been the primary labor law issue, with movements pushing for higher local minimum wage standards.

Municipality Minimum Wage Laws

In 2017, Ohio passed a law that prevents municipalities from setting their own minimum wage rates, requiring them to adhere to the state minimum wage. This legislation came shortly after Cleveland had approved a plan to let local voters decide on raising the city’s minimum wage to $15 per hour.

Ohio Minimum Wage Exemptions

In addition to exemptions under the Fair Labor Standards Act (FLSA), Ohio has several categories of employees who are exempt from minimum wage laws:

  • Minors Under 16: Can be paid the federal minimum wage instead of the Ohio minimum wage.
  • Minors Under 18 at Nonprofit Camps: Exempt from Ohio minimum wage rules.
  • Small Employers: Businesses with gross receipts of $319,000 or less from the previous year can pay the federal minimum wage. This threshold is adjusted annually on January 1 and is tied to the Consumer Price Index.
  • Certain Professionals: Includes commissioned salespeople, executives, administrative workers, and computer professionals, provided their duties are not classified merely to avoid minimum wage.
  • Family-Owned Business Employees: Relatives of the owner working in family-owned and operated businesses are exempt.
  • Babysitters and Live-In Caregivers: Babysitters in the home where the baby lives and live-in caregivers for elderly or ill individuals are exempt, as long as housekeeping is not their primary duty.
  • Volunteers: Volunteers for public agencies, hospitals, health institutions, or food banks are exempt, provided they do not seek payment, do not receive expense reimbursement, and do not perform similar services as a paid employee for the same employer.
  • Disabled Individuals: Employers can apply for a license to pay disabled individuals less than the current minimum wage, at a rate determined by the Ohio Department of Commerce Director. Different licenses may be issued based on employment and facility type, including temporary on-the-job training, individual rates within a facility, sheltered workplace programs, and work activity centers.
  • Government Employees: Those working for the state, a city, the federal government, or other government entities may be exempt under certain conditions.

Ohio Posting Requirements

Ohio has minimal posting requirements, but employers must also comply with applicable federal labor law posting requirements. The required posters in Ohio include:

  • Ohio Minimum Wage
  • Federal Minimum Wage
  • Ohio Non-Discrimination in Wages
  • Fair Employment
  • Child Labor
  • Unemployment
  • No Smoking Sign

Tipped Wage in Ohio

Ohio’s minimum wage ordinance allows employers to use a tip credit to pay tipped workers half of the state’s current minimum wage rate. As of January 2021, this rate is $4.40 per hour (half of $8.80 per hour). This rate is reviewed annually on September 30 and adjusted according to the Consumer Price Index.

However, Ohio requires that the combination of tips and the base wage must equal at least the full minimum wage for all hours worked. If direct pay and tips do not meet the Ohio minimum wage, the employer must pay the difference, in line with federal law under the Fair Labor Standards Act.

Employees can only be considered tipped employees if they regularly receive tips and their tips usually exceed $30 per month.

According to federal rules, mandatory fees added to checks, even if labeled as a gratuity, are not considered tips, and employers may claim those fees if desired. However, the IRS introduced incentives in 2014 to discourage this practice.

Additionally, if tips are left on a credit card, employers may not deduct credit card processing fees from the employee’s tips.

Overtime Wage in Ohio

Ohio Overtime Law

Ohio requires employers to pay one and one-half times an employee’s regular rate for hours worked over 40 in a workweek. The workweek must be pre-established and cannot exceed seven consecutive days.

However, employers with less than $150,000 in gross annual revenue are exempt from paying overtime. Despite this, federal laws such as the Fair Labor Standards Act (FLSA) or the Contract Work Hours and Safety Standards Act (CWHSSA) take precedence if they are more favorable to the employee.

Municipal Exceptions

While Ohio prohibits municipalities from setting their own minimum wage rates, cities and counties can exempt themselves from state overtime rules if they create an alternative overtime plan and provide adequate notice to employees. Municipalities may also allow compensatory time instead of overtime pay.

Exemptions

The same exemptions that apply to minimum wage also apply to overtime. Additional exemptions include:

  • Franchisors are not responsible for the hours of franchisee employees.
  • Agricultural workers, police officers, firefighters, newspaper delivery workers, and state legislature employees are exempt.
  • Owner-operator motor carriers (land or water) and drivers may be exempt under certain conditions.

Child Labor Laws in Ohio

Ohio child labor laws apply to individuals under 18, with some exceptions. Minors who are heads of household or have graduated high school (or received an equivalency diploma) are exempt.

Being a minor does not exempt a worker from the Ohio minimum wage. However, those under 16 may be paid the federal minimum wage instead of the Ohio minimum wage in some cases. Minors working in nonprofit camps and babysitters are also exempt from the Ohio minimum wage.

Exceptions to Ohio’s child labor laws mainly apply to minors in non-traditional work settings, such as:

  • Training programs within a school setting
  • Parent-authorized charity work
  • Newspaper delivery
  • Lawn mowing and similar jobs
  • Some entertainment and acting work
  • Minors employed by their parents, unless otherwise prohibited

Minors working in family-owned agricultural operations may be exempt, but this does not include children living in labor camps.

Ohio also exempts minors who are disabled and living in sheltered circumstances, as they fall under disabled labor laws.

Hazardous employment is prohibited for minors, with the definition of dangerous activities based on the Fair Labor Standards Act. However, Ohio allows 16 and 17-year-olds to participate in manufacturing mentorship programs with some restrictions.

Additionally, some minors in the juvenile justice system are exempt from Ohio child labor laws.

Minors required to be enrolled in school must obtain and present a schooling certificate to their employer before they can work.

Ohio also restricts the hours that minors aged 17 and under can work.

Employer Recordkeeping Requirements in Ohio

For minimum wage workers, Ohio mandates that certain employment records be maintained for at least three years. These records must be available for inspection by the Director of the Ohio Department of Commerce, and copies must be provided upon request.

The required records include:

  • Name
  • Address
  • Occupation
  • Rate of pay
  • Amount paid to the employee each pay period
  • Hours worked each day
  • Hours worked each workweek

Additional records may be required by federal law, and retention times may vary.

Ohio Labor Law Questions & Answers

Ohio law does not specifically address compulsory overtime, and federal law, such as the Fair Labor Standards Act (FLSA), does not prohibit it either. This means employers in Ohio can require employees to work overtime as part of their job duties, provided they comply with other labor laws, such as those concerning overtime pay and minor work hour restrictions.

For instance, Ohio limits the workday to eight hours for employees in mining, manufacturing, and mechanical businesses, unless otherwise specified in a labor contract. Union contracts may also place restrictions on mandatory overtime in certain cases.

Ohio has specific restrictions on the hours minors can work:

  • Rest Periods: All minors must be given a rest period of at least 30 minutes for every five consecutive hours worked. This rest period can be unpaid.
  • Minors Under 16:
    • May not work more than 40 hours in a week when school is not in session or 18 hours a week when school is in session.
    • May not work during school hours, except for qualified school work programs.
    • May not work more than three hours on a school day or eight hours on a non-school day.
    • May not work before 7 a.m. or after 7 p.m. when school is in session. From June 1 to September 1 and during school breaks longer than five days, they may work until 9 p.m.
  • Minors Aged 16 and 17:
    • Cannot work before 7 a.m. on school days unless they did not work past 8 p.m. the previous night, in which case they can start at 6 a.m.
    • Cannot work after 11 p.m. on nights before a school day.

Ohio follows federal work break rules under the FLSA, with specific provisions for minors:

  • Minors: Must be given at least a 30-minute break for every five consecutive hours worked. This break can be unpaid.
  • Adults: There is no requirement for breaks. However, if short breaks (generally under 20 minutes) are provided, they must be paid. Longer breaks, such as lunch breaks, do not have to be paid.

Union contracts may specify required breaks, but these are contractual agreements and not part of Ohio law.

Ohio wage law does not specifically address tip pooling, so the Federal Fair Labor Standards Act (FLSA) rules apply. Under the FLSA:

  • Tip pools cannot include employees who do not regularly receive tips, such as dishwashers.
  • Employees outside the service chain of the employee initially receiving the tip cannot be included in the tip pool.
  • Employees must be informed about tip pools and their rules in advance.
  • Customers must be notified of tip pools in writing, such as on a table card or a note on the receipt before the tip is given.

No, Ohio labor law requires employers to pay employees at least twice per month. However, there can be a half-month delay between hours worked and hours paid:

  • Hours worked from the 1st to the 15th of the month must be paid by the 1st of the following month. For example, work done from January 1 to January 15 must be paid by February 1.
  • Hours worked from the 16th to the last day of the month must be paid by the 15th of the following month. For example, work done from January 16 to January 31 must be paid by February 15.

Ohio Labor Law Posters

Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters. 

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Labor Law Posters