In Ohio Labor Laws, following the Fair Labor Standards Act (FLSA), employees are entitled to overtime pay for hours worked over 40 at a rate of time-and-a-half.
Seeing as Ohio is governed by both state and federal laws, Ohio state can provide employees with more rights than what is offered by FLSA but not any less.
This article will provide you with the information to successfully navigate Ohio’s overtime regulations, whether you’re an employer aiming for compliance or an employee defending your rights.
Ohio Overtime Laws Summary
| State overtime law | Overtime applies for hours worked over 40 in a workweek |
| Overtime pay rate | 1.5x an employee’s regular hourly rate |
| Ohio minimum wage | $11.00 per hour |
| Minimum overtime wage | $16.50 per hour |
| Comp time | Allowed |
| Salary threshold for overtime exemption | $684 per week |
This Article Covers
- Ohio Overtime Rates
- Overtime Entitlement in Ohio
- Refusing to Work Overtime in Ohio
- Compensatory Time in Ohio
- Overtime for Tipped Employees in Ohio
- Overtime for Salaried Employees in Ohio
- Overtime for Commissioned Employees in Ohio
- Overtime Exceptions and Exemptions in Ohio
- Penalties for Unpaid Overtime Claims in Ohio
Ohio Overtime Rates
The majority of hourly employees in Ohio have the right to an overtime pay rate for any hours worked beyond 40 in a week.
Overtime in Ohio is set at 1.5 times the regular hourly rate for workers whose work exceeds 40 hours a week.
Since the regular Ohio minimum wage is $10.45 per hour, that makes Ohio’s overtime minimum wage $15.68 per hour (1.5 times the minimum wage).
Overtime Entitlement in Ohio
The majority of hourly employees in Ohio have the right to an overtime pay rate for any hours worked beyond 40 in a week. Overtime in Ohio is set at 1.5 times the regular hourly rate for all overtime hours.
Since the regular Ohio minimum wage is $11 per hour, that makes Ohio’s minimum overtime wage $16.50 per hour (1.5 times the minimum wage).
However, businesses with gross receipts less than $405,000 may pay their employees the current federal minimum wage rate, which is $7.25 per hour. For their employees, the minimum overtime rate becomes $10.88 per hour.
Read more about Overtime Exceptions and Exemptions in Ohio.
Refusing to Work Overtime in Ohio
If you refuse to work overtime after your employer has scheduled you for it, your employer will have the right to invoke disciplinary action against you. This can sometimes lead to the termination of your employment.
However, this rule may be open to modification if a prior agreement or collective bargaining act (CBA) was made.
Compensatory Time in Ohio
Employees can use comp time at a mutually agreed time, within the usage period set by Ohio overtime laws. Comp time isn’t available until it shows up on the employee’s earnings statement.
Non‑exempt employees will be paid for unused comp time if it isn’t used within the allowed period or if they leave their job. When unused comp time is paid out, it’s converted back to overtime hours (using a two‑thirds factor) and paid at the overtime rate in effect at the time of payment.
Employees must use all comp time before taking unpaid leave, unless otherwise allowed by law.
Overtime for Tipped Employees in Ohio
Tipped employees in Ohio are employees who earn over $30 a month in tips. These employees are eligible for overtime pay when they work more than 40 hours in a week under Ohio overtime laws.
Employers can pay tipped employees a lower cash wage of $5.50 per hour an claim a tip credit up to $5.50 per hour. However, the total earnings of a tipped employee must equal or exceed the state’s minimum wage ($11 per hour).
If an employee’s cash plus tips earnings fall short of the state’s minimum wage, the employer must pay the difference.
Overtime for tipped employees is calculated at 1.5 times the regular hourly rate for tipped workers. The full minimum wage should be taken into account for overtime calculations, not just the lower cash wage.
Employers are also not allowed to take a higher tip credit for overtime hours.
Overtime for Salaried Employees in Ohio
Just because you receive a salary does not mean you are not entitled to overtime compensation in Ohio.
While most employees who are exempt (not eligible) from overtime happen to be paid on a salary basis, not all salaried employees are exempt.
An employee’s job duties, responsibilities, and weekly income are what determine overtime eligibility.
Overtime for Commissioned Employees in Ohio
Ohio overtime laws state that employees who receive commissions are entitled to overtime compensation. Their commissions would have to be included in the calculation of overtime rates. However, they will only be given half of that rate for every overtime hour.
For example, let’s say an employee works 45 hours a week at a rate of $11/hour and receives $100 in commissions for that week. We need to first calculate the new regular hourly rate.
To do so:
(Total hours x Hourly Rate) + Commission
= (45 x 11) + 100
= $595 (new regular hourly rate)
Then, divide that by the total hours worked in the week.
= $595 / 45
= $13.22
To determine the overtime rate for the commissioned employees, we need to take that new regular hourly rate and halve it.
$13.22 / 2
= $6.61 (commissioned employees’ overtime rate)
Since the employee worked an extra 5 hours in the week, that makes his overtime compensation $33.05 ($6.61 x 5 hours).
The amount will vary according to the hours worked, hourly rate, and commission earned.
Overtime Exceptions and Exemptions in Ohio
The Ohio Senate recently passed a bill, effective from July 6, 2022, that exempts certain occupations from overtime requirements. This includes:
- Employees of businesses earning less than $150,000 in yearly gross sales
- Agricultural workers
- Casual babysitters
- Live-in caretakers
- Recreational camp staff
- Public employees
- Administrative, professional, or executive employees
Penalties for Unpaid Overtime Claims in Ohio
Ohio law sets the statute of limitations at 2 years for unpaid wage claims. Employees have only these 2 years to file a claim or lawsuit in court to be able to receive compensation for unclaimed overtime hours.
There are some exceptions to Ohio’s statute of limitations that may differ depending on the circumstances found in each case. The statute of limitations can be extended if:
- Defendant (accused) is Out of State – If the defendant has left Ohio during the 2 years, the statute of limitations will be delayed until they return. Their absence will not be considered in those 2 years.
- Mental Disability – If the person who makes the claim is not deemed mentally competent due to mental illness, the statute of limitations will be extended until after the matter is resolved.
- Underage – If the person who makes the claim is under the age of 18, the statute of limitations will only begin once they have turned 18.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
