Ohio overtime laws: What every HR professional needs to know

Ohio overtime laws can feel overwhelming for even the most seasoned HR professionals. Between state-specific rules and federal alignments, there's a lot to keep track of when managing overtime calculations. Staying informed isn't just about avoiding non-compliance—it's about creating fair and transparent practices for your workforce.

Ohio's overtime regulations include both familiar federal standards and unique state-specific rules. Legislative updates have clarified some gray areas, giving employers more guidance on compensable time and legal protections. Understanding these updates and how they impact payroll can help HR teams stay organized and compliant.

This guide breaks down what HR professionals need to know about Ohio's overtime laws, from state obligations to key differences from federal requirements.

Understanding Ohio overtime regulations

Ohio's core overtime requirement

Ohio requires employers to pay 1.5 times an employee's regular hourly wage for any hours worked over 40 in a workweek. This rule, outlined in Section 4111.03 of the Ohio Revised Code, applies unless an employee falls under a specific exemption. Common exemptions include executive, administrative, or professional employees as defined by the Fair Labor Standards Act (FLSA).

Ohio Senate Bill 47 (SB 47), effective July 6, 2022, introduced important updates to overtime law. The bill aligned Ohio with the federal Portal-to-Portal Act, which excludes certain activities from compensable time. For instance, routine commuting or minor tasks like checking emails after hours typically don't count toward overtime unless specifically required by an employer under an employment contract or established practice.

Agricultural workers remain exempt from the state's overtime provisions. Additionally, county and township employees may opt for compensatory time off in place of overtime pay, but only within strict guidelines and approval from their administrative superior.

Key differences in Ohio's overtime law from federal law

Ohio's overtime laws follow many FLSA provisions but include a few key differences. One major distinction is the exemption for small businesses. Employers with annual gross revenues under $150,000 are not subject to Ohio's overtime requirements. However, depending on the nature of their operations, these businesses may still need to comply with federal FLSA rules.

Another important difference comes from changes introduced by SB 47. Ohio now requires employees pursuing unpaid overtime claims under state law to opt into collective actions. This process mirrors the FLSA's opt-in requirement, preventing hybrid class actions that combine state and federal claims. Employees must now actively consent in writing to join lawsuits, reducing potential risks for employers facing legal disputes.

These differences, combined with state-specific exemptions, make it important for HR teams to understand how Ohio's regulations interact with federal standards.

Who must comply

Ohio's overtime laws apply to a wide range of employers and employees, but there are clear criteria that determine who is covered and who is exempt. Knowing these distinctions ensures compliance and helps avoid payroll errors.

Employers and employees covered

Most public and private employers in Ohio must follow the state's overtime regulations, provided they meet specific income thresholds.

• Private Employers: Businesses are required to comply if their gross annual revenue equals or exceeds $150,000. Smaller employers below this threshold are exempt, unless federal FLSA rules apply.
• Public Employers: Local entities, such as municipalities, counties, and townships, must adhere to Ohio's overtime laws. Some public employers may establish alternative overtime policies through formal resolutions or rules.
• Dual Compliance: Employers exempt under Ohio law may still need to follow federal FLSA standards, particularly if their operations involve interstate commerce or other qualifying activities.

Common exemptions in Ohio

Not all employees qualify for overtime pay under Ohio law. Specific exemptions are based on job duties, industry, and income thresholds. Because federal salary thresholds for FLSA exemptions may change over time, HR professionals should confirm current federal requirements when determining exempt status, even when job duties remain unchanged.

• Executive, Administrative, and Professional Employees: These roles, often referred to as "white-collar" exemptions, are excluded if they meet the FLSA duties test and Ohio's salary requirements. Examples include department managers, high-level administrative staff, and professionals with advanced degrees.
• Agricultural Workers: Employees in farming or related activities are excluded from overtime pay requirements under Ohio law.
• Outside Sales Employees: Workers who primarily engage in sales away from the employer's main location are exempt, provided they meet FLSA criteria.
• Motor Carrier Employees: Certain truck drivers and delivery workers are not entitled to overtime pay if they fall under specific conditions, such as owning their vehicle or controlling operating expenses.
• Employees of Small Businesses: Those working for businesses with annual revenues under $150,000 are exempt from Ohio's overtime laws unless FLSA rules apply to their roles.

Knowing the exemptions and income thresholds ensures that payroll practices align with state and federal requirements. Missteps in classification can lead to compliance issues and financial penalties.

Legislative updates in Ohio

Ohio's overtime laws have evolved to provide more clarity and guidance for employers managing payroll and compliance. These changes address compensable time and the legal framework for overtime disputes, making it important for HR professionals to stay informed.

SB 47 highlights

Senate Bill 47 made specific updates to Ohio's overtime regulations, particularly around activities that do not qualify for overtime pay. For example, routine commuting and minor post-shift tasks, such as briefly checking emails, are not compensable unless they are explicitly required by the employer. If these tasks occur during regular work hours or at the specific direction of the employer, however, they must be paid.

The law also introduced an "opt-in" requirement for collective overtime lawsuits under state law. Employees must now provide written consent to join legal actions, which aligns with the approach outlined in the FLSA. This change reduces the likelihood of hybrid lawsuits that combine state and federal claims, offering employers more predictability in litigation.

These updates clarify how Ohio's overtime rules interact with federal standards while limiting gray areas around compensable time. Employers should evaluate internal policies to ensure alignment with these provisions.

Overtime tax deduction proposal

Legislative proposals have brought attention to overtime wages and state income tax. One pending bill (H. B. No. 39) seeks to exempt overtime pay from Ohio's state income tax, allowing employees who work extra hours to retain more of their earnings.

If passed, this change would require updates to payroll processes and withholding calculations. HR professionals may also need to communicate adjustments in take-home pay to employees affected by the new rules. While the proposal is still under consideration, it reflects ongoing efforts to support employees working overtime and streamline state tax policies.

Staying updated on legislative developments like the overtime tax deduction proposal is key for adjusting payroll practices and ensuring compliance with evolving laws.

Compensatory time vs. overtime pay

Compensatory time, or comp time, is an option for specific public-sector employees in Ohio to take extra time off instead of receiving overtime pay. However, private-sector employers face stricter rules and cannot generally offer comp time as a substitute for paying employees overtime wages. Understanding how comp time is applied in each setting is important for staying compliant and transparent with employees.

When comp time applies

Public-sector employees, such as those working for counties or townships, may be eligible for comp time instead of overtime pay. This option provides flexibility for employees while maintaining compliance with Ohio's overtime laws.

• Comp Time Rate: Eligible employees accrue 1.5 hours of compensatory time for every overtime hour worked. This mirrors the same calculation used for overtime wages.
• Timeframe for Use: In most cases, comp time must be used within 180 days of being earned. Employees coordinate with their administrative supervisor to schedule time off at a mutually agreed-upon date.
• Policy Adjustments: County and township authorities can adopt alternative policies regarding comp time. These policies require formal approval and written notice to employees at least 10 days before implementation.

Public employers must document comp time properly and communicate clearly with employees about their options and any deadlines for using accrued time. Mismanagement can lead to confusion or disputes.

Comp time in the private sector

Comp time is not an option for most private-sector employers in Ohio. Under the FLSA, private businesses are required to pay employees 1.5 times their regular hourly wage for all hours worked over 40 in a single workweek. Offering comp time in place of overtime pay is prohibited, even with the employee’s consent.

Private employers should focus on accurate recordkeeping and timely payroll processing for overtime hours. Any deviation from federal rules risks compliance violations, wage claims, or audits. Even well-meaning attempts to offer comp time in the private sector can result in costly penalties.

For HR teams, ensuring compliance with overtime pay requirements starts with clear policies and precise tracking of employee hours.

Calculation and recordkeeping in Ohio

Complying with Ohio overtime laws means knowing how to calculate pay accurately and maintaining detailed records. Errors in either area can lead to wage disputes, fines, and other legal issues, so clarity and precision are important.

Regular rate of pay

Calculating the regular rate of pay is straightforward when you break it down, but missteps often occur when employers overlook additional earnings.

• Hourly Employees: Start with the base hourly wage. Add all eligible earnings, including commissions and nondiscretionary bonuses. Divide the total earnings by the actual hours worked in the week. Multiply the resulting rate by 1.5 for any hours worked over 40 in the workweek.
• Salaried Non-Exempt Employees: Divide the weekly salary by the number of hours it is intended to cover, typically 40 unless otherwise specified. Use this hourly rate as the base. For overtime, pay 1.5 times the calculated hourly rate for hours exceeding 40 in the week.

Missing any qualifying earnings, such as performance-based bonuses, can result in underpaid overtime. Employers should review pay structures carefully to avoid compliance issues.

Tracking hours worked

Accurate tracking of hours worked is not optional. Employers in Ohio must document daily hours and ensure records are complete and accessible.

• Daily Records: Record exact start and end times, as well as total hours worked each day. This applies to all non-exempt employees, regardless of pay structure.
• Retention Requirements: Store time records for a minimum of three years. Retained records must include hours worked, pay rates, and any wage adjustments.
• Non-Compensable Activities: Under SB 47, employers must track non-compensable activities like commuting or minor post-shift tasks separately from actual working hours. Clear records ensure only compensable time is included in overtime calculations.

Incomplete or inaccurate records can lead to disputes, so employers should establish consistent timekeeping practices and review records regularly.

Penalties for misclassification

Employee misclassification is a common compliance issue and often results in significant financial consequences. Employers must understand the differences between exempt and non-exempt classifications, as well as employee versus contractor designations.

• Back Wages: Misclassified workers are entitled to retroactive pay for any owed wages, including unpaid overtime.
• Liquidated Damages: If misclassification is determined to be intentional, employers may be required to pay liquidated damages equal to the back wages owed.
• Fines and Legal Fees: State and federal agencies can impose fines for misclassification errors. Employers may also face legal costs if employees file formal complaints or lawsuits.

Regular audits of employee classifications and payroll practices can prevent costly mistakes. Misclassification isn't just an administrative error—it often leads to significant financial and legal exposure.

Maximum hours and forced overtime

Ohio labor laws establish clear rules for overtime pay but offer employers flexibility in setting work hours beyond the standard 40-hour threshold. Understanding these regulations is important for ensuring compliance and avoiding disputes over scheduling or compensation.

40-hour workweek standard

Ohio's overtime laws focus on the total hours worked in a single workweek, not the daily hours worked. Employers are not required to pay overtime for shifts exceeding eight hours unless a contract explicitly includes daily overtime provisions.

• Overtime Pay Requirement: Overtime pay applies only after an employee works more than 40 hours in one workweek. Additional hours must be compensated at 1.5 times the employee's regular hourly wage.
• Flexible Scheduling: Employers can schedule shifts longer than eight hours or more than five consecutive days without triggering overtime pay, as long as the weekly total does not exceed 40 hours.

Employers are free to schedule as many hours as necessary, but once the weekly threshold is crossed, overtime pay becomes mandatory. A written agreement or collective bargaining contract may introduce stricter requirements, so employers should review obligations carefully.

Refusal of overtime

Refusing mandatory overtime is generally not protected under Ohio law. Employees who decline overtime may face disciplinary action unless covered by specific agreements or protections.

• Disciplinary Policies: Employers can impose consequences, including termination, for employees who refuse mandatory overtime, provided no contract limits this authority.
• Union Protections: Employees represented by a union may have protections negotiated through collective bargaining agreements. These agreements can limit mandatory overtime or impose stricter compensation terms.
• Public-Sector Exceptions: Public-sector employers, such as counties or townships, may adopt local policies regulating overtime. Employees should review workplace policies for additional guidance.

Employers must communicate overtime expectations clearly to avoid confusion. Employees should understand the potential consequences of refusing overtime, as well as their rights under any applicable agreements.

Frequently asked questions

Ohio overtime laws can be tricky to navigate, especially when determining specific thresholds, exemptions, and scheduling rules. Here are straightforward answers to common concerns HR professionals face.

Is overtime after 8 or 40 hours in Ohio?

Ohio uses a 40-hour workweek to calculate overtime. Unlike states requiring daily overtime for shifts beyond a certain number of hours, Ohio does not mandate extra pay for working more than eight hours in a single day.

Certain collective bargaining agreements or industry contracts may include daily overtime provisions, though these are exceptions. Without such agreements, overtime pay only applies to hours worked beyond 40 in one workweek, paid at 1.5 times the regular hourly rate.

What are the new overtime laws in Ohio?

Updates clarified which activities count as compensable time and adjusted how claims for unpaid overtime are handled. SB 47 specifies that tasks like commuting or brief after-hours activities, such as checking emails, typically do not require overtime pay unless explicitly directed by the employer or covered under a contract.

Additionally, Ohio now mirrors the FLSA's opt-in model for overtime lawsuits. Employees must actively consent in writing to join a collective action for unpaid overtime claims, which reduces the likelihood of large-scale hybrid lawsuits combining state and federal claims.

Who is exempt in Ohio?

Exemptions apply to employees meeting specific job duties and salary requirements. Ohio follows the FLSA's classifications, which include:

• Executive Employees: Responsible for managing a business or department, supervising at least two employees, and influencing hiring or firing decisions.
• Administrative Employees: Perform non-manual or office work tied to business operations and make decisions on significant matters.
• Professional Employees: Includes roles requiring advanced knowledge in specialized fields such as law, medicine, or engineering, or creative roles in art or design.
• Outside Sales Employees: Primarily work away from the office, focused on sales or obtaining contracts.

Eligibility for exemption also depends on meeting Ohio's minimum salary threshold. Employees who do not meet the salary requirement must be classified as non-exempt, even if their job duties align with an exempt role.

How many hours can someone work in a day in Ohio?

Ohio does not limit the number of hours an employee can work in a single day. Employers can schedule shifts as needed without triggering daily overtime, as long as the total hours for the week stay under 40.

However, federal guidelines, including OSHA regulations, address workplace safety concerns. Long shifts that lead to fatigue-related risks could draw attention from OSHA, especially in industries where safety is a priority. Employers should weigh operational needs against employee well-being to maintain a safe and productive environment.

HR teams managing overtime compliance often benefit from streamlined processes for tracking hours, payroll calculations, and recordkeeping. Staying organized minimizes errors and ensures employees receive accurate compensation.

Navigating Ohio's overtime laws is complex, but with the right tools and information, you can create fair, compliant practices that support your workforce. With streamlined payroll processes and reduced compliance risks, organizations can build trust with employees and manage overtime more effectively.