Ohio business compliance consists of both Ohio Labor Laws and federal laws, ranging from topics such as payroll and minimum wage, employee break and leave laws, to discrimination, recordkeeping, and more. Ohio Labor Laws are meant to strengthen the rights of workers in the state, as well as provide guidelines for the employee-employer relationship.
Managing labor law compliance can get difficult. Companies that are struggling with Ohio Labor Law compliance may want to consider seeking help from an Ohio payroll and HR company.
To get started now, employers can use this article as a guide to help understand and manage compliance with legislation and labor laws throughout Ohio in all key areas, which include, but are not limited to:
Here is everything employers need to know about Ohio Labor Laws.
Ohio employers need to be aware of the following laws when it comes to hiring new employees.
While there is no law covering private-sector employers in Ohio, there is a law covering public employers.
Under Ohio Revised Code Section 9.73, public employers are prohibited from inquiring as to an applicant’s criminal history on any form or application for employment. Public employers include a state agency or political subdivision of the state. This law does not apply to private employers.
Ohio public employers may inquire about the applicant’s criminal history once it is determined that an offer of employment is appropriate. However, unless otherwise stated by another state or federal law, applicants may not be disqualified from employment based solely upon a criminal conviction. An employer must consider a number of factors before denying employment.
If employment is denied, the employer is required to disclose whether or not the applicant’s criminal history was the basis of such a decision.
Under Ohio New Hire Reporting law (Ohio Revised Code Section 3121.89-3121.8911), employers are required to report every new employee, temporary employee, rehired employee, or independent contractor working in Ohio to the Ohio New Hire Reporting Center within 20 days of the date of hire.
Employers need to report the following information for each new hire, or recalled employee:
New hires in Ohio may be reported electronically or non-electronically. Employers submitting electronically have three options:
Employers choosing not to use the recommended electronic reporting options can file new hire reports on paper via fax or mail. Employers should use the Ohio New Hire Reporting Form, a W4, or another list providing all the required information.
NOTE: Employers with employees in more than one state should register to report to Ohio as a multistate employer with the Federal Office of Child Support Enforcement.
Employers failing to report new hires in the proper timeframe may receive fines of up to $25 per new hire that was not reported.
If it is deemed that failure to report was intentional on behalf of the employer and employee, fines can reach up to $500 per new hire that was not reported.
Effective March 1st, 2024, Ordinance No. 0709-2023 prohibits employers from asking job applicants about current or past wages, benefits, other compensation, or salary history.
This law applies to Columbus employers with 15 or more employees.
One of the most important and largest areas of Labor Laws in Ohio are wage and hour laws. Employers should ensure a proper understanding of these laws before processing payroll in Ohio.
Under the federal Fair Labor Standards Act (FLSA), there are three types of workers: non-exempt, exempt, and independent contractors.
Employers should ensure that employees are properly classified, as misclassification of a worker may have state and federal monetary consequences.
Ohio minimum wage is regularly updated to account for inflation. So it is important to stay current and have a method in place to stay ahead of minimum wage changes.
It is also important to note that Ohio minimum wage only applies to non-tipped employees, employees of employers grossing more than the yearly threshold amount, and employees 16 years or older.
Ohio Minimum Wage Rates |
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| Effective Date | Ohio Minimum Wage | Ohio Tipped Minimum Wage | Annual Gross Receipt Threshold |
| January 1st, 2023 | $10.10 | $5.05 | More than $372,000 |
| January 1st, 2024 | $10.45 | $5.25 | More than $385,000 |
| January 1st, 2025 | $10.70 | $5.35 | More than $394,000 |
| January 1st, 2026 | $11.00 | $5.50 | More than $405,000 |
NOTE: In Ohio, a tipped employee is defined as an employee who customarily and regularly receives more than $30 per month in tips. Tipped employees’ wages and tips must be greater than or equal to the normal minimum wage rate for Ohio. Otherwise, employers must make up the difference.
According to Ohio Permissible Payroll Deductions, employers may make deductions from wages for the following reasons:
Any deduction not included in the above list must be approved by the public authority and the director and must meet the following requirements:
Under Ohio Wage Payment Timing Law, employers must adhere to certain requirements regarding when wages need to be paid to employees.
Ohio employers are required to pay employees with a pay frequency that recurs at least semi-monthly, or twice per month. Specifically, employers must pay employees earned wages from the first half of the preceding month (ending with the fifteenth day) on or before the first day of each month.
As such, employees must be paid for wages earned during the remaining days of the preceding month (16th to the end of the month) on or before the fifteenth day of each month.
NOTE: Employees absent on a payday must be paid upon demand at the place where the wages are usually paid (if applicable).
Employers may also pay wages less frequently if based on a written contract and if it is customary in the trade, or when permitted by law. Employers may also pay wages more frequently than required.
It is crucial to ensure employees are paid on time, as late payments can lead to penalties and fines.
Ohio does not have any specific law regulating requirements for final paychecks when an employee quits or is fired. As such, employers should adhere to the general wage payment timing laws of the state when dealing with final pay.
This includes payment of any unused benefits on termination, which is not required. However, an employer that has agreed, either in a written or oral policy or by practice, to pay employees for accrued but unused time off should include such payment in the final paycheck.
In addition to federal overtime requirements, Ohio employers must also comply with requirements under the Minimum Fair Wage Standards (MFWS), enforced by the Ohio Department of Commerce Bureau of Wage & Hour (ODOC).
Under both federal and state law, private employers must pay employees one and one-half times the regular wage rate for all hours worked in excess of 40 hours during a workweek.
Ohio Overtime Law does not apply to employers with annual gross sales less than $150,000, or a franchisor with respect to the franchisor's relationship with a franchisee or an employee of a franchisee (with some exceptions).
However, important to note is that an employer may still be covered under federal overtime law.
State and county employees have the option to take compensatory time off instead of overtime pay under Ohio’s Compensatory Time Law. Any compensatory time taken must be approved by the appropriate supervisor and must be used within 180 days of earning the overtime.
According to the FLSA regulations on overtime, all employees are to receive overtime pay unless classified as exempt. Exempt employees must pass the Salary Test and be classified as legitimate professional, administrative, or executive employees as per the definitions for each employee exempt class.
In addition to individuals exempt from overtime under the FLSA, Ohio Overtime Law has its own classifications as to what does NOT classify as an employee based on these duties / professions:
Ohio has adopted certain provisions of the federal Portal-to-Portal Act into state law.
Primarily, Ohio’s Portal-to-Portal Act enforces the following:
Ohio generally does not require private employers to provide employees with meal or rest breaks. There are, however, certain rules regarding breaks for minors under Ohio Child Labor Laws.
While the FLSA sets the minimum wage for most employment at 14, as well as other standards when it comes to the employment of minors, employers must also comply with Ohio Child Labor Laws. When state and federal laws overlap, the law that provides the most protection to minors will apply.
First and foremost, in order to hire an employee ages 14-17 the employee must have a minor work permit. The employer must also come to an agreement with the minor regarding the wages or compensation he or she shall receive.
Ohio child labor laws also cover the following topics:
In order to employ minors, Ohio employers must:
Employers are also required to provide minor employees with a rest period of at least 30 minutes for every 5 consecutive hours worked.
While Ohio does not have any state law requiring paid or unpaid leave, sick time, or any such related law, Ohio employers must still maintain compliance with the Federal Family Medical Leave Act (FMLA) as well as:
Employers may still offer annual, vacation, or sick leave under the business's own policies. Such employers must adhere to the established policies in order to avoid legal trouble.
While there is no law that specifically states employers allow specific time off for employees to serve on a jury, there are certain prohibitions regarding leave taken for jury duty purposes under Ohio Jury Duty Leave Law.
First and foremost, employers may not discharge, threaten to discharge, or take any disciplinary action against an employee summoned for jury duty. However, employees are required to provide reasonable notice to the employer if he or she has been summoned for jury duty and intend to be absent from work to serve as part of said jury.
Employers are also prohibited from requiring an employee to use annual, vacation, or sick leave for time spent responding to a summons for jury duty.
Similar to jury duty leave, Ohio Voting Leave Law doesn’t specifically state employers must allow specific time off for employees to vote.
However, Ohio employers must allow employees to take time off to vote without discharging or threatening to discharge an employee for taking a reasonable amount of time to vote on election day.
Employers are also prohibited from:
Effective April 6th, 2023 employees have the right to take time off, without loss of pay, to prepare for or attend criminal or delinquency proceedings.
Under Ohio Victim Leave Law, employers are still not allowed to discharge, discipline, or otherwise retaliate against the victim, a member of the victim's family, or a victim's representative for any of the following:
An employer knowingly violating the protections under this law shall be found in contempt of court.
While Ohio does not require that employers provide disability benefits, the state does have its own law regarding continuation of coverage.
While all covered Ohio employers must comply with Federal COBRA law (employers with 20 or more employees), employers not covered by federal law may still be covered under Ohio COBRA law, otherwise referred to as Ohio mini-COBRA.
Ohio mini-COBRA law applies to businesses with fewer than 20 employees. It provides continuation coverage for individuals that have lost his or her group health insurance as a result of involuntary termination of employment for reasons other than gross misconduct.
Under Ohio Unemployment Insurance Law, covered employers include those that either:
Covered employers can register the business by going to the Department of Job & Family Services. The employer is also responsible for reporting liability as soon as one or more employees are in covered employment.
Many businesses in Ohio require unemployment insurance, which is a key step in the business registration process. Employers looking to start a business in Ohio or expand operations into the state should review the state’s business registration requirements and begin the process with a business registration service.
Workers' compensation provides benefits to injured workers on the job or have a work-related illness. Ohio Workers’ Compensation Law requires all employers with one or more employees to obtain workers’ compensation insurance.
Employers must submit an Application for Ohio Workers’ Compensation Coverage (U-3) along with a $120 (minimum) non-refundable application fee in order to gain coverage with the state.
Medical benefits and lost wages are paid to employees by the Bureau of Workers’ Compensation (BWC) unless the employer chooses to self-insure.
While there are no state Occupational Safety and Health (OSHA) laws for Ohio, Ohio employers do need to maintain compliance with federal OSHA law.
Additionally, employers in Ohio should be aware of laws regarding smoking in the workplace.
Under Ohio’s Smoke-Free Workplace Law, employers are responsible for:
Ohio employees are protected under both federal discrimination laws and state discrimination laws. Employers need to be familiar with both in order to stay in compliance with equal opportunity employment laws.
The Ohio Civil Rights Act contains Ohio’s state laws against discrimination. It is composed of Ohio Revised Code Chapter 4112 and Ohio Administrative Code Chapter 4112.
In Ohio, employers with four or more employees are covered by state discrimination laws and must ensure not to implement any Ohio discriminatory practices.
Like all states, Ohio requires employers to post certain labor law posters and notices, as well as keep certain records regarding employee information.
Employers are required to post Ohio labor law posters and notices under Ohio State law for the following topics:
Ohio employers must also display labor law posters under federal law on the following topics:
Ohio employers should always have the most up-to-date labor law posters to avoid severe penalties. Using a labor law poster subscription service can help ensure employers are covered with accurate versions of the required posters.
Under Ohio Recordkeeping law, employers with one or more employees must keep employment and payroll records for each employee going back a minimum of 5 years.
These records must include:
Employers must also keep available all records needed for state audits. These include, but are not limited to:
Effective September 30th, 2025, Ohio state issued its own provisions regarding the federal WARN Act under Section 4113.31, commonly referred to as the Ohio Mini-WARN Act.
Ohio's Mini WARN Act requires employers to provide employees with at least a 60-day’s advance notice before any business closings or mass layoffs.
Employers must provide a notice required by the federal WARN Act if both of the following apply:
Employers are not required to provide a notice when plant closures or mass layoffs constitute a strike or a lockout.
Employers are required to include the following when providing employees with a notice:
Ohio regulations are constantly changing on a federal, state, and local level. Businesses and Ohio employers struggling with compliance may want to reach out to an Ohio HR Outsourcing Company, which can help organizations stay up-to-date and compliant.
Companies looking for Ohio HR services can find a provider now, or contact us for more information.
Tony Chiviles is Managing Partner and one of the founders of PayBridge, a leading Ohio payroll services company. Tony is responsible for the day-to-day operations of PayBridge, including production, implementation, customer service, and sales. Tony’s dedicated and innovative leadership helped Paybridge define a unique niche in integrating payroll and retirement to benefit our clients, and to make our valued TPA partners more competitive using PayBridge's Web-based payroll and other related solutions.
Tony has been key in establishing PayBridge as a national presence. He brought to PayBridge a rare combination of Fortune 500 and entrepreneurial start-up experiences, and his successful track record spans 15 years of leadership across sales, marketing, financial, and technical areas in payroll and IT consulting, including national-level leadership with Fortune 500 firm Ceridian Corp. Complementing that large payroll firm experience, Tony has launched several successful startup firms targeting specific niches in payroll and IT.