For Ohio workers exceeding the standard set of employment hours, employers must ensure those additional hours are compensated accurately and in a timely manner based on Ohio overtime regulations. However, some employees may be exempt from overtime pay entirely. It is important for Ohio employers to fully comprehend the state’s unique overtime laws as well as federal laws.
Here is what employers need to know regarding Ohio overtime laws.
Ohio Labor Laws require that employers comply with state overtime regulations under the Minimum Fair Wage Standards (MFWS), enforced by the Ohio Department of Commerce Bureau of Wage & Hour (ODOC).
Under overtime laws in Ohio, eligible workers must receive overtime compensation for all hours worked over 40 in a workweek.
Employers may define a workweek as any seven-consecutive-day cycle. The cycle must begin and end on the same day and time every week. If an employer does not define a workweek, then the workweek should default to a typical calendar week of Sunday through Saturday.
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.
State and county employees have the option to take compensatory time off (paid leave) 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. Compensatory time shall be granted on a time-and-a-half basis, at a time mutually convenient to the employee and the employer.
In the case of an employee receiving overtime pay in Ohio, below is an example of a standard overtime rate calculation:
Ohio Overtime Calculation Example:
40 Regular Hours Worked
X $20.00 Per Hour (Regular Pay Rate)
= $800.00 Total Regular Pay
$20.00 Per Hour (Regular Pay Rate)
+ 1 ½ Overtime Premium ($12.50 Per Hour)
= $30.00 Per Hour (Overtime Pay Rate)
10 Overtime Hours Worked
X $30.00 Per Hour (Overtime Pay Rate)
= $300.00 Total Overtime Pay
$800.00 Regular Pay
+ $300.00 Overtime Pay
= $1,100.00 Total Pay
An employee’s regular rate of pay or pay rate is the normal hourly wage. If an employee’s pay rate differs at times, then the average pay rate should be used as the regular rate of pay.
To determine an employee’s regular rate of pay (often in the case of salaried employees), add together weekly compensation (not including overtime) and divide by 40 hours.
Signed by President Trump on July 4, 2025, the One Big Beautiful Bill Act allows eligible employees to claim a tax deduction on overtime pay required by the FLSA from taxable income. The overtime tax deduction is effective from January 1, 2025 through December 31, 2028.
An employee can deduct an annual maximum amount of $12,500. For employees jointly filing with a spouse, the annual deduction amount is capped at $25,000. If an employee’s modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for employees filing jointly), the amount allowed to be deducted will be reduced by $100 for each $1,000 earned above the MAGI.
To be eligible for the overtime tax deduction, employees must include a Social Security number on the tax return for the given tax year. If married, the employee must also file jointly to remain eligible. Even if individuals opt for a standard deduction (vs. itemized deductions) on a tax return, the individual is still eligible for the annual maximum deduction for overtime.
All employers must file information returns to the IRS or Social Security Administration (SSA), as well as deliver the applicable forms, including a W-2, to employees that show the total amount of qualified overtime compensation paid out during the tax year.
While employers with annual gross sales that are 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) are not covered under Ohio overtime laws, it is important to note that an employer may still be covered under federal overtime law.
In addition to the above types of employers, the following types of employees are also exempt from Ohio Overtime law:
There are still exemptions from overtime pay under federal labor laws and the Fair Labor Standards Act (FLSA). While employers can get a brief overview below, here is a full breakdown of how to classify employee exemptions and contractors for overtime.
It is a common myth that salaried employees are exempt from overtime pay. However, only those employees meeting a specific salary level test and the definition of either an executive, administrative, or professional (EAP) employee are exempt from overtime.
Effective November 15, 2024, the U.S. District Court for the Eastern District of Texas invalidated a U.S. Department of Labor (DOL) regulation that raised the salary threshold for the "white-collar" overtime exemption under the Fair Labor Standards Act (FLSA). This decision applies nationwide, rendering the rule ineffective.
The result of the court ruling specifies the overtime-exempt salary threshold for 2025 as $684 per week ($35,568 annually). This threshold reflects the most recent update that is still in effect, made in 2019.
For highly compensated employees, the threshold remains at $107,432 / year (including at least $684 / week on a salary or fee basis).
Here is a brief overview of how the FLSA and federal government define executive, administrative, and professional employees.
In order to qualify for an executive exemption, an employee must pass the Salary Level Test as well as:
In order to qualify for an administrative exemption, an employee must pass the Salary Level Test as well as:
In order to qualify for a professional exemption, an employee must pass the Salary Level Test as well as:
To qualify for an outside sales exemption, an employee must pass the Salary Level Test as well as:
Employers should also note that Ohio has adopted certain provisions of the federal Portal-to-Portal Act into state law, providing certain state protections for workers.
Ohio’s Portal-to-Portal Act enforces the following:
To learn more about processing payroll in Ohio or maintaining compliance with Ohio overtime pay and requirements, contact an Ohio payroll company.
By leveraging experts in payroll services, companies can avoid non-compliance fines and potential hefty legal penalties.
For help finding a provider, contact Employer Pass today. Businesses can also get started finding a provider now.
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.