(650) 332-8623Ohio Overtime Laws: Your Guide to Rates, Statutes, Calculations, and More (2025)
Learn about Ohio overtime laws for 2025: rates, exemptions, penalties, and compliance tips. Simplify payroll with Workyard’s smart solutions.
Ohio Overtime Rates and Statutes
1.5x
Ohio's Primary Overtime Pay Rate
Under Ohio labor laws, most non-exempt employees are entitled to overtime pay at 1.5 times their regular hourly rate for all hours worked over 40 in a workweek. This is consistent with federal Fair Labor Standards Act (FLSA) regulations.
For instance, if an employee earns the Ohio minimum wage of $10.45 per hour, the overtime rate would be $15.68 per hour.
40 hours /week
Threshold to Receive Overtime in Ohio
Ohio follows the federal threshold, requiring overtime for hours exceeding 40 in a single workweek. However, there are no state-specific requirements for overtime based on daily hours worked. Employers with gross annual receipts under $150,000 are exempt from overtime rules.
Ohio Rev. Code § 4111.03
The Main Overtime Statute(s) in Ohio
Ohio’s overtime rules are governed by Ohio Revised Code Section 4111.03, which aligns closely with federal FLSA standards. This statute ensures that workers earning below the threshold of $844 per week or $43,888 annually are covered.
ODJFS
Ohio Department of Job and Family Services is Responsible for Enforcing Overtime Laws in Ohio
The Ohio Department of Job and Family Services (ODJFS) oversees the enforcement of wage and overtime laws in the state. The agency assists employees in filing complaints and recovering unpaid wages while ensuring employer compliance with Ohio labor laws.
How to Calculate Overtime Pay in Ohio
To calculate overtime pay in Ohio, you’ll first need to know the employee’s regular hourly rate and how many hours they’ve worked over 40 in a single workweek. Ohio labor laws, aligning with the federal FLSA, require overtime pay at 1.5 times the regular hourly rate for all hours beyond 40 in a week.
Example Calculation for Hourly Workers:
- Regular Rate: If an employee earns $15 per hour and works 45 hours in a week, they’ve logged 5 overtime hours.
- Overtime Rate: $15 × 1.5 = $22.50.
- Overtime Pay: $22.50 × 5 = $112.50.
- Total Weekly Pay: (40 × $15) + $112.50 = $712.50
Calculations for Tipped Employees:
Tipped employees also receive overtime pay at 1.5 times the regular rate, calculated without deducting the tip credit. For instance:
- Base Pay: $5.05 (Ohio’s tipped minimum wage).
- Overtime Rate: ($10.45 × 1.5) = $15.68 (minimum wage calculation).
- If a tipped worker works 45 hours in a week, their overtime pay would be $15.68 × 5 = $78.40
Overtime for Commissioned Employees:
Ohio includes commissions in overtime calculations:
- Calculate total weekly earnings: (Hourly wage × hours worked) + commissions.
- Divide by total hours worked to find the adjusted hourly rate.
- Multiply half the adjusted hourly rate by overtime hours to determine the additional overtime pay.
For example:
- Weekly Earnings: $10/hour × 45 hours + $100 commission = $550.
- Adjusted Hourly Rate: $550 ÷ 45 = $12.22.
- Overtime Compensation: ($12.22 ÷ 2) × 5 = $30.56
Ohio overtime calculations ensure fair wages for all non-exempt employees, including hourly, tipped, and commissioned workers. For complex cases, consulting an employment attorney is recommended.
Looking for other state-specific labor and overtime laws? Check out these guides:
Who's Eligible For Overtime Pay in Ohio?
Most hourly workers in Ohio are eligible for overtime pay. Under both state and federal law, any hours worked beyond 40 in a workweek must be compensated at 1.5 times the worker’s regular hourly rate.
Salaried employees earning less than $844 per week ($43,888 annually) are eligible for overtime. As of January 1, 2025, this threshold will increase to $1,128 per week. These employees must also meet specific job duty requirements to qualify for overtime pay.
Salaried employees earning more than the threshold may be exempt from overtime if they meet criteria under the FLSA. Exempt roles include administrative, professional, and executive positions that involve decision-making authority or supervisory duties.
These salaried roles are exempt if their duties involve management, decision-making, or specialized expertise. Employees in high-tech fields like software development may also be exempt, provided they meet similar criteria.
Sales workers who spend at least 50% of their time away from their employer’s primary location, typically working door-to-door or at remote kiosks, are exempt from overtime.
Government workers, including state and local employees, are often exempt. In lieu of overtime, they may be eligible for compensatory time-off under specific guidelines.
Workers under agreements that outline wages, hours, and work conditions with pay 30% above the state minimum wage may be exempt.
Employees whose pay primarily consists of commissions, exceeding 50% of their total compensation, may not qualify for overtime under Ohio labor laws.
In addition to the previous exemptions, the following types of employees may be considered exempt from some or all of Ohio’s overtime regulations:
- Agricultural Workers: Covered by separate laws and exemptions
- Recreational Camp Staff: Employees working in temporary camp settings
- Casual Babysitters: Babysitters providing occasional services, often in private homes
- Employees of Small Businesses: Businesses grossing under $150,000 annually are not subject to overtime laws
- Live-in Caretakers: Domestic workers living on-site may be exempt depending on their job duties
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Ohio vs. Federal Overtime Laws Compared
40 Hours / WeekOhio Overtime Threshold
Ohio labor laws align with federal rules, requiring employers to pay overtime after 40 hours in a single workweek. Employers with annual gross receipts of less than $150,000 are exempt from overtime requirements. Compensatory time, instead of overtime pay, is permitted for public sector employees.
40 Hours /weekFederal Overtime Threshold
Under the FLSA, non-exempt employees must receive overtime pay for all hours worked beyond 40 per workweek.
A workweek is defined as any fixed and recurring period of 168 hours or seven consecutive days.
1.5xOhio Overtime Rate
Overtime pay in Ohio is calculated at 1.5 times the regular hourly wage. For employees earning the state minimum wage of $10.45, overtime pay begins at $15.68 per hour.
1.5xFederal Overtime Rate
The FLSA mandates overtime pay at 1.5 times an employee’s regular rate. This rate applies to all hours worked beyond 40 per week, without additional premiums for extended overtime.
$43,888 / YearOhio Overtime Threshold for Salaried Employees
Salaried employees in Ohio earning less than $844 per week ($43,888 annually) are eligible for overtime pay. This threshold is scheduled to increase to $1,128 per week in January 2025.
$58,656 / yearFederal Overtime Threshold for Salaried Employees
Starting January 1, 2025, the FLSA sets the overtime exemption threshold at $1,128 per week or $58,656 annually for most salaried employees. Lower thresholds apply in certain U.S. territories.
OhioRoles Exempt from Overtime
The following roles are roles exempt from overtime in Ohio:
- Executive, administrative, and professional employees meeting specific duties and salary requirements.
- Outside sales employees working away from their employer’s location for 50% or more of their time.
- Employees in agriculture or under collective bargaining agreements
FederalRoles Exempt from Overtime
Federal exemptions include:
- Executive, administrative, and professional employees earning above the threshold.
- Highly compensated employees earning over $151,164 annually, with at least $1,128 paid weekly.
- Computer-related and outside sales employees.
Misconceptions About Ohio Overtime Laws
Many believe that only hourly workers are eligible for overtime pay under Ohio labor laws.
Salaried employees earning less than $844 weekly ($43,888 annually) are also eligible for overtime. Eligibility depends on salary thresholds and job duties, not just hourly pay.
It is often assumed that everyone is entitled to overtime pay regardless of job type, duties, or income.
Exempt roles, including executive, administrative, and professional employees earning above the salary threshold, are not eligible for overtime. Specific exemptions also apply to industries such as agriculture and outside sales.
Some think employers can decide their own overtime policies, such as offering comp time instead of overtime pay.
Ohio overtime laws align with federal standards. Private employers cannot substitute comp time for overtime pay unless they meet specific public-sector requirements.
It’s a common misconception that tipped employees do not receive overtime benefits.
Tipped employees are eligible for overtime at 1.5 times their regular rate, calculated without additional tip credit deductions. Employers must ensure fair pay for hours beyond 40 per week.
Some mistakenly believe employees qualify for overtime pay if they work over eight hours in a single day.
In Ohio, overtime pay is calculated weekly, not daily. Employees qualify for overtime only when they work more than 40 hours in a workweek.
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Penalties for Overtime Noncompliance in Ohio
100% of Owed AmountFailure to Pay Overtime Wages
Ohio employers who fail to pay overtime wages are required to compensate employees for the unpaid wages, along with liquidated damages equal to 100% of the owed amount. This effectively doubles the financial obligation for the employer.
$500+Misclassification of Employees
Misclassifying employees as exempt or as independent contractors to avoid overtime obligations can result in penalties starting at $500 per misclassified worker. Employers may also face back pay requirements, legal fees, and additional damages. In severe cases, misclassification can lead to criminal charges.
$1,000 – $10,000Wlllful noncompliance
Employees can file private lawsuits to recover unpaid wages, liquidated damages, and attorney fees. Courts may impose additional penalties ranging from $1,000 to $10,000 per violation, especially in cases of willful noncompliance. Repeat offenses may result in harsher penalties or imprisonment.
Navigating Overtime Requirements in Ohio
Know What to Do as an Employer
- Understand Ohio Overtime Laws: Stay updated on state and federal overtime regulations, including exemptions and thresholds.
- Classify Employees Properly: Determine whether workers are exempt or non-exempt under Ohio labor laws.
- Use Time-Tracking Systems: Implement reliable tools to accurately monitor hours worked, including overtime.
- Train HR and Payroll Staff: Conduct training to ensure compliance with overtime laws and correct payroll calculations.
- Audit Payroll Practices Regularly: Check for accurate overtime calculations, ensuring bonuses and commissions are factored in.
- Maintain Comprehensive Records: Keep detailed records of hours worked, wages, and any overtime paid for at least three years.
- Establish Clear Overtime Policies: Communicate written overtime policies to employees, ensuring transparency.
- Seek Legal Guidance: Consult legal experts to address classification or overtime-related disputes.
Know Your Rights as a Worker
- Understand Your Classification: Confirm whether you are classified as exempt or non-exempt, as this impacts overtime eligibility.
- Track Your Hours: Keep a personal log of your work hours to verify paycheck accuracy.
- Know Your Overtime Rate: Understand how overtime pay is calculated, including bonuses or commissions.
- Access Legal Resources: Familiarize yourself with Ohio labor laws through state labor agencies.
- Resolve Pay Discrepancies: Discuss any pay errors with your employer; escalate unresolved issues to the Department of Labor.
Common Overtime Pay Challenges for Employers in Ohio
- Misclassification
Improperly categorizing employees as exempt or contractors can lead to unpaid overtime claims, legal penalties, and costly back pay disputes. - Inaccurate Recordkeeping
Failing to track hours worked, including overtime, increases the risk of legal non-compliance and makes resolving disputes or audits challenging. - Incorrect Overtime Calculations
Excluding bonuses or commissions when calculating overtime rates results in underpayment and potential legal claims for back wages and damages. - Overlooking Thresholds
Ignoring salary thresholds for overtime eligibility can misclassify employees, leading to penalties and lawsuits for unpaid overtime. - Non-Compliance with Time Limits
Delays in paying overtime violate labor laws, damage employee trust, and expose employers to fines and legal actions.
Overtime Pay Solutions for Employers in Ohio
- Ensure Proper Employee Classification
Conduct regular audits to confirm employees are correctly classified as exempt or non-exempt. Use clear guidelines based on job duties and salary thresholds to avoid misclassification penalties. - Implement Reliable Time-Tracking Systems
Adopt automated time-tracking tools to accurately monitor employee work hours, including overtime. These systems can reduce errors and ensure compliance with recordkeeping requirements. - Train Payroll and HR Staff
Provide training to HR and payroll teams on overtime laws and calculations. Educated staff can prevent mistakes, such as omitting bonuses or commissions in overtime pay. - Conduct Routine Payroll Audits
Regularly review payroll records to identify and correct errors in overtime calculations. Address discrepancies promptly to avoid disputes or legal claims. - Establish Clear Overtime Policies
Develop written policies outlining overtime procedures, eligibility, and pay rates. Communicate these policies to employees and ensure they align with Ohio labor laws. - Pay Overtime Promptly
Use efficient payroll systems to ensure overtime is paid on time. Timely payment prevents legal violations and maintains employee trust. - Consult Legal Advisors
Engage labor law experts to handle complex situations, such as disputes over misclassification or calculation errors. Expert advice ensures compliance with state and federal overtime laws.
General Best Practices for Ohio Overtime Laws
- Verify Employee Classifications
Regularly review employee classifications to ensure they align with state and federal labor laws. Misclassifying employees as exempt or contractors can lead to penalties, back pay obligations, and potential legal disputes. Use clear criteria to determine exemption status based on job duties and salary thresholds. - Invest in Modern Payroll Tools
Adopt automated payroll systems to reduce errors in calculating overtime wages. Modern tools can accurately include bonuses, commissions, and hours worked, ensuring compliance with complex labor laws. These systems also save time and improve efficiency in payroll processing. - Regularly Update Policies
Review and revise company policies to incorporate changes in labor laws, such as updated salary thresholds or overtime requirements. Communicate these updates clearly to management and employees to ensure everyone is informed and compliant. - Engage Employees
Foster transparency by educating employees on overtime policies, eligibility, and pay rates. Open communication helps prevent misunderstandings and builds trust while ensuring that employees are aware of their rights and responsibilities. - Consult Legal Professionals
Work with labor law experts to stay informed about evolving overtime regulations. Regular legal advice can help prevent compliance issues, resolve disputes efficiently, and protect the company from potential lawsuits or penalties.
Final Thoughts
Navigating Ohio’s overtime laws requires careful compliance with classification, tracking, and payment rules. By implementing best practices and proactive solutions, employers can avoid costly penalties while ensuring fair treatment of employees.
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Ohio’s overtime rules require employers to pay 1.5 times an employee’s regular hourly rate for any hours worked over 40 in a single workweek. This applies to non-exempt employees, including most hourly and some salaried workers earning below the threshold. Employers with annual gross receipts under $150,000 are exempt from overtime rules. The law also requires employers to maintain accurate time records and pay overtime promptly. Failure to comply can result in penalties, back pay claims, and legal action under state and federal laws.
Ohio does not set daily limits on how many hours an employee can work as long as they comply with federal labor laws. Overtime pay is required only for hours exceeding 40 in a single workweek, not for daily overtime. While there are no restrictions on daily hours, employers must ensure compliance with other workplace safety and health standards. Employees are entitled to breaks as per company policy or employment agreements, but no state-mandated daily hour limits exist unless tied to specific industries.
In 2025, Ohio’s salary threshold for overtime exemption will increase to $1,128 per week ($58,656 annually), aligning with federal rules. Salaried employees earning below this threshold will qualify for overtime if they work more than 40 hours in a week, provided they do not meet exemption criteria based on job duties. This change aims to extend overtime eligibility to more workers. Employers must adjust payroll practices and ensure compliance with the new threshold to avoid penalties for misclassification or unpaid overtime.
Starting January 1, 2025, the federal salary threshold for overtime exemption increases to $1,128 per week or $58,656 annually. This change will impact salaried employees who previously earned between $844 and $1,128 weekly. Workers earning below this amount will become eligible for overtime pay unless classified as exempt due to job duties. Ohio employers must update payroll systems and reevaluate employee classifications to align with these changes. Non-compliance with the updated threshold could result in back-pay claims, fines, and legal action.
