Introduction to employment laws in Ohio
Overview
When hiring workers in Ohio, staying informed about state-specific employment laws and regulations is essential to ensure compliance.
In this article, we’ll cover key Ohio employment statutes, including minimum wage laws, overtime requirements, anti-discrimination protections, and employee rights, providing the knowledge needed to manage your workforce within the legal framework of the Buckeye State.
Employing in Ohio: Key employment laws and practices
Standard work hours
In Ohio, full-time employment is generally considered 40 hours per week or eight hours per day. However, the law also considers no less than 30 hours per week full-time employment.
This varies depending on the type of employment. Contractual professionals might have different standard working hours based on the terms of their contracts.
On the other hand, self-employed professionals set their own working hours based on their workload and client requirements. Therefore, it’s essential for employers to clearly define work hours in the employment contract.
Minimum wage and overtime
Ohio’s current minimum wage for private-sector employees stands at $10.45 per hour. However, if a business has annual gross receipts of less than $385,000.00 USD, the minimum wage is lowered to the national hourly rate of $7.25 USD.
Ohio follows the federal Fair Labor Standards Act (FLSA) in terms of overtime laws. Non-exempt employees who clock more than 40 hours in a week are entitled to overtime pay of 1.5 times their regular pay rate.
To be exempt from overtime, employees generally must earn more than the state or federal exemption threshold and perform executive or managerial duties.
Insurance and benefits
Ohio mandates employers provide certain benefits to employees. These include unemployment insurance and contributions to Social Security and Medicare. In addition to these statutory benefits, many Ohio employers also provide health, dental, and vision insurance and retirement benefits like 401k plans to stay competitive and attract talent.
| Employer contributions | Percentage |
| Unemployment insurance (state) | 0.40% – 10.10% |
| Unemployment- New employer (state) | 2.70% |
| Workers’ compensation insurance | Varies |
| FICA Social Security | 6.20% |
| FICA Medicare | 1.45% |
| FUTA (Federal Unemployment Tax Act) | 0.60% – 6.00% |
Multiplier makes it easy to manage benefits for Ohio employees.
Meal and rest periods
Ohio employment laws do not require employers to provide breaks, including lunch breaks, for workers 18 years old or older.
Employers who choose to provide breaks of twenty minutes or less must pay their employees for this time, as outlined in federal law. Meal periods lasting thirty minutes or more are not considered time worked and hence, are unpaid, also as outlined in federal law. If an employee is required to remain at the workplace during the meal break, it counts as paid time.
For minors, Ohio law requires a thirty-minute break for every five hours worked. This rest period should be scheduled as close to the middle of the shift as possible. Businesses that fail to provide this mandatory break may face fines or other penalties.
Anti-discrimination laws
Ohio employment laws extensively cover protections against workplace discrimination. These include both federal and additional state-level protections against discrimination based on race, color, religion, sex (including pregnancy), national origin, disability, age (40 or older), or genetic information. In addition to these federal protections, Ohio law also prohibits employment discrimination based on military status.
he Ohio Civil Rights Act extends these protections further by prohibiting discrimination based on ancestry and AIDS/HIV status. The act requires employers with four or more employees to provide equal employment opportunities and bars them from discriminatory practices in hiring, compensation, promotion, and termination processes.
Ohio courts have interpreted the state’s anti-discrimination law to also cover sexual orientation and transgender status under the category of sex. Employers must treat instances of sexual harassment, which includes unwelcome sexual advances or requests for sexual favors, as a violation of the state’s anti-discrimination law.
Leave policies
Ohio employment laws and regulations define several types of leaves that employers must provide to eligible employees.
| Leave type | Duration | Paid/Unpaid | Law |
| Vacation leave | At the employer’s discretion | At the employer’s discretion | No specific law |
| Sick leave | Up to 40 hours per year | Paid | Ohio law, FMLA |
| Parental/Maternity leave | Up to 12 weeks (FMLA), six continuous weeks for pregnancy (Ohio Civil Rights Act) | Unpaid (FMLA), Paid (Ohio Civil Rights Act) | FMLA, Ohio Civil Rights Act |
| Bereavement | At the employer’s discretion | At the employer’s discretion | No specific law |
| Jury duty | Duration of jury service | Unpaid | Ohio law |
| Military leave | Duration of service | Unpaid | USERRA |
Easily onboard employees in Ohio?
Termination laws
In Ohio, most employees are employed “at-will,” meaning either party can terminate the employment relationship at any point without notice. However, an employer is not allowed to terminate an employee for reasons that violate federal or state laws, such as discrimination or retaliation for reporting illegal activities.
Ohio follows the federal Worker Adjustment and Retraining Notification Act (WARN) in cases of mass dismissals or layoffs. This law requires employers with 100 or more full-time employees to provide at least 60 days’ advance notice before mass layoffs.
There is no Ohio law mandating payout for unused vacation time upon termination—the employer’s established policy determines this. However, it’s common practice in Ohio for employers to pay out unused vacation time if the employee provides adequate notice of resignation.
Safety and health
Employee safety and health are paramount in Ohio HR compliance. Employers must comply with the federal Occupational Safety and Health Act (OSHA), which requires workplaces to be free from recognized hazards causing death or serious physical harm.
Ohio further enhances these protections through its Bureau of Workers’ Compensation (BWC), which ensures safe workplaces and provides compensation to injured employees. The BWC requires employers to report workplace injuries and fatalities and to provide workers’ compensation insurance.
Ohio also enforces the Public Employment Risk Reduction Program (PERRP), which applies similar safety standards as OSHA but specifically for public sector employees in Ohio. PERRP mandates all public employers to report any work-related fatalities within eight hours.
Taxes in Ohio
Ohio employment laws require both employers and employees to pay certain taxes. For employers, this includes unemployment insurance tax at a rate between 0.40% and 10.10%, applied on the first $9,000 of an employee’s salary annually. Employers also contribute towards FICA Social Security at 6.20%, up to an annual wage limit of $168,000, and FICA Medicare at 1.45% with no wage limit.
Employees also have tax obligations: FICA Social Security and FICA Medicare. High-income employees earning over $200,000 also pay an additional tax of 0.90%.
| Tax type | Employer contribution | Employee contribution |
| Unemployment insurance | 0.40%-10.10% on first $9,000 of salary | None |
| FICA Social Security | 6.20% on salary up to $160,200 | 6.20% on salary up to $160,200 |
| FICA Medicare | 1.45% on total salary | 1.45% on total salary; additional 0.90% on earnings over $200,000 |
| State income tax | None | Progressive, 2.75%-3.5% |
| Federal income tax | None | Progressive, 10%-37% |
Managing Ohio employees with an Employer of Record (EOR)
Ohio is an attractive state for businesses considering expansion due to its robust economy and diverse workforce. However, to thrive and legally operate within the state, a comprehensive understanding of Ohio’s employment laws is necessary. To navigate these complexities, partnering with Multiplier could be an advantage.
Our Employer of Record (EOR) solution allows businesses to legally employ full-time workers in Ohio without setting up local business entities. And our Global Payroll platform ensures that international employees are paid on time in their desired currencies, all while handling local taxes, contributions, and withholdings.
Book a demo with Multiplier to see how we can help streamline your HR processes and ensure compliance with Ohio’s employment laws.
FAQs
Ohio defines full-time employment as no less than 30 hours per week, however it typically amounts to around 40 hours per week.
The state minimum wage for private sector employees in Ohio is currently $10.45 per hour for businesses that earn annual gross receipts of $385,000 or more per year. For businesses earning less than this amount, the minimum wage is $7.25 per hour.
In Ohio, non-exempt employees are entitled to overtime pay of 1.5 times their regular pay rate if they work more than 40 hours in a week, as stipulated by the Fair Labor Standards Act.
Employer payroll contributions in Ohio range from 0.40% to 10.10% for unemployment insurance (state), and 6.20% for FICA Social Security (federal). Employees contribute 6.20% to FICA Social Security (federal) and 1.45% to FICA Medicare (federal).
In Ohio, public holidays are not mandatory paid days off, but employers commonly provide such days off as paid. Sick leave falls under the Family and Medical Leave Act (FMLA), providing up to 12 weeks of unpaid, job-protected leave for certain family and medical reasons. Maternity and paternity leave also fall under FMLA, offering twelve working weeks of leave in any one year for a child’s birth and to care for the newborn within one year of birth.
