01State $11.00, two-tier coverage threshold, no city ordinances
Ohio's minimum wage is $11.00/hr effective January 1, 2026 — adjusted annually under Article II § 34a of the Ohio Constitution. The 2006 ballot initiative established CPI-based indexing, with the Department of Commerce announcing the new rate by October each year. The constitutional grounding makes the annual increase automatic — no legislative action needed.
Two-tier coverage threshold: The state $11.00 applies to employers with annual gross receipts exceeding $405,000 (the threshold rises annually with CPI). Employers below the threshold may pay the federal $7.25 minimum. The two-tier structure is unusual — most state minimum wage laws apply uniformly regardless of employer size or revenue.
Tipped workers earn $5.50/hr cash plus tips, with employer required to ensure tips bring total compensation to at least $11.00. Workers must receive more than $30 per month in tips to qualify for tipped wage classification. Below that threshold, the worker earns the full $11.00 in cash.
City wage ordinances are preempted since 2017. Cleveland, Cincinnati, Columbus, Dayton, and other Ohio cities cannot set higher minimum wages. The preemption simplifies multi-location operations: workers earn the same rate regardless of city. This contrasts sharply with neighboring states (e.g., Pennsylvania has Philadelphia/Pittsburgh PSL but state preemption on wages; Illinois has Cook County and Chicago).
Some workers are exempt from state minimum wage: workers under 16; family members of family-owned businesses; babysitters and live-in caregivers without primary housekeeping duties; certain hospital volunteers; police/fire student workers; nonprofit camp workers. Exempt workers fall to the federal $7.25 floor where FLSA applies.
021.5× past 40 hours, federal exemptions, 2-year state SOL
Ohio's overtime law (Ohio Revised Code § 4111.03) requires overtime pay at 1.5× regular rate for hours worked over 40 in a workweek. The state law mirrors federal FLSA on the trigger, calculation, and exemptions. Ohio does not impose a daily overtime requirement.
Coverage threshold: ORC § 4111.03 covers employers with annual gross receipts over $150,000. Employers below that threshold are not subject to the state overtime statute but may still be covered by federal FLSA. The dual federal-state framework means almost all Ohio employers are subject to overtime requirements through one or both channels.
Exempt classification: Ohio incorporates federal FLSA exemptions by reference. Executive, administrative, professional, computer, and outside sales exemptions apply per 29 CFR Part 541. Salary basis: $684/week ($35,568/year) per federal FLSA. The DOL's 2024 increase to $1,128 was vacated in November 2024.
Statute of limitations: 2 years under ORC § 4111.10. Federal FLSA: 2 years for ordinary, 3 for willful. Workers can pursue both state and federal claims simultaneously, choosing whichever provides better remedies. Federal FLSA's mandatory liquidated damages (doubling unpaid OT) typically makes federal the preferred path for litigation.
Regular rate calculation: per 29 CFR Part 778, includes hourly base, commissions, nondiscretionary bonuses, shift differentials. Excludes discretionary bonuses, gifts, employer benefit contributions. Ohio adopts the federal regular rate framework wholesale.
03Federal FMLA is the only statutory leave framework
Ohio has no statewide Paid Sick Leave law and no statewide Paid Family and Medical Leave program. As of March 2026, Ohio has not enacted PSL or PFML legislation applicable to private-sector employers. The state remains in the minority of populous states without statewide paid leave frameworks.
Federal FMLA (29 USC 2601) provides the only statutory job-protected leave: 12 weeks unpaid leave per 12-month period at employers with 50+ employees within 75 miles. Workers eligible: 12+ months of service, 1,250+ hours in prior 12 months. Qualifying events: birth/adoption, worker's own serious health condition, family member's serious health condition, military exigency.
Ohio Revised Code § 124.136 establishes a paid parental leave benefit for state government employees only — does not apply to private-sector workers. The framework provides 6 weeks of paid leave for birth, adoption, or foster placement.
House Bill 491 (135th General Assembly) was introduced to establish a state-administered PFML program. Did not advance to floor vote. As of March 2026, no state PFML legislation is pending in the current General Assembly.
Voluntary employer-provided leave: Ohio employers can offer PTO, sick leave, and parental leave above federal FMLA. Once committed in written policy or established by practice, those benefits become contractual obligations enforceable through breach-of-contract claims (not Ohio wage statute, since there's no state PSL/PFML to violate). Employers retain flexibility on benefit structure.
04One of four monopolistic-state-fund jurisdictions; no private insurance permitted
The Ohio Workers' Compensation Act (OWCA) requires employers with 1 or more employees to hold workers' compensation coverage. There is no small-business carve-out — every employer is covered. Employers cannot opt out of providing coverage under any circumstances.
Ohio is one of four US jurisdictions operating a monopolistic state fund (with Washington, North Dakota, Wyoming). Employers cannot purchase private workers' compensation insurance — coverage must be obtained through the Ohio Bureau of Workers' Compensation (BWC). Premium rates are set by the BWC based on industry classification, claim history, and other factors.
Self-insurance is permitted for employers approved by the BWC. Approval requires demonstrating sufficient financial strength, claim management capability, and required reserves. Self-insured employers retain full responsibility for claim adjudication and benefit payment, with BWC oversight. Most Ohio employers are not self-insured.
Coverage scope: workers' comp covers injuries and illnesses arising out of and in the course of employment. Self-inflicted injuries and injuries due to intoxication are excluded. Coverage extends to medical expenses, wage replacement during disability, vocational rehabilitation, and survivor benefits in fatal cases.
Multi-state operators face structural complexity: Ohio coverage must be Ohio BWC; Pennsylvania coverage from a Pennsylvania-licensed private carrier or PA's State Workers' Insurance Fund; Indiana from a private carrier; etc. Coverage cannot be unified through a national policy — the monopolistic Ohio system requires a separate policy track.
Read the full Ohio mandatory workers' compensation — ohio state fund guide →
05Non-residential construction contractors must verify identity and authorization for new hires
Ohio's E-Verify Workforce Integrity Act takes effect March 20, 2026. Non-residential construction contractors must use the federal E-Verify system to verify the identity and legal work authorization of all employees hired on or after that date.
Coverage: 'non-residential construction' — commercial, industrial, institutional, and infrastructure construction. Residential construction (single-family homes, multi-family residential) is NOT covered. Other industries (healthcare, manufacturing, hospitality, retail) are NOT covered.
Mandatory verification process: contractors must enroll in E-Verify with the U.S. Department of Homeland Security. For each new hire, the contractor submits identity documents (Social Security Number, ID document) through E-Verify within 3 business days of hire. E-Verify returns a Tentative Nonconfirmation (TNC) or confirmation. TNCs require resolution before continued employment.
Civil penalties: up to $1,000 per worker for failure to verify. Per-worker penalties can aggregate quickly across contractor workforces. Criminal prosecution available for repeat or willful violations — typically third-degree misdemeanor. The Ohio Attorney General has investigative and enforcement authority.
Contractor exposure extends beyond the prime contractor. Subcontractors performing non-residential construction work are independently subject to the requirement. Prime contractors should verify subcontractor compliance through written certifications and audit rights — though subcontractor failures don't directly expose the prime contractor unless the prime knew or should have known of the violation.
Read the full Ohio e-verify workforce integrity act (march 20, 2026) guide →
06Right of control framework with workers' comp and tax exposure stack
Ohio uses a multi-factor common law test for IC classification — not the strict ABC test. The Ohio Supreme Court's framework in Bostic v. Connor and subsequent cases focuses on right of control as the primary factor, with secondary factors weighed contextually. No single factor is dispositive.
Primary factor — right of control: does the employer control how the work is performed (method, schedule, location)? Detailed instructions, required schedule, supervision, performance reviews, and integration into employer workflow all suggest employee status. Worker autonomy on method, schedule, and location suggests IC.
Secondary factors: method of payment (hourly/salary vs project-based); opportunity for profit/loss; investment in tools and equipment; permanence of relationship; whether work is part of employer's regular business; skill required; characterization by parties; whether worker provides similar services to others.
Ohio's monopolistic workers' compensation system creates distinctive misclassification exposure. Misclassified workers are uncovered for any workplace injuries during the misclassified period. The Ohio Bureau of Workers' Compensation actively audits IC classifications — premium recalculation plus penalties up to 100% of unpaid premiums plus interest. Injury claims during the misclassified period can create direct employer liability outside the workers' comp framework.
Beyond workers' comp: tax withholding back-payment (federal income, Ohio income, FICA, FUTA); unemployment compensation contributions and penalties; federal FLSA back-OT if worker should have received overtime. Combined misclassification exposure on multi-worker classifications can reach 6-7 figures, though typically lower than ABC-test states' exposure.
Read the full Ohio ic misclassification — multi-factor common law test guide →
07Next-payday rule, semimonthly minimum frequency, ORC 4113.15
Ohio Revised Code § 4113.15 requires pay on regularly designated paydays at minimum semimonthly frequency. Pay periods cannot exceed 16 days, and payment must be made within 30 days of the end of the pay period (15 days for the second-half pay period of a month).
Ohio has no specific final paycheck statute requiring earlier payment on termination. Final wages follow the regular payday cycle. Discharged workers and voluntary quits both receive final pay on the next regular payday following the last day of work.
Final pay components: regular wages through the last day; overtime past 40 hours in any partial week; commissions actually earned per the commission agreement; nondiscretionary bonuses earned and not yet paid; expense reimbursements. Vacation payout is governed by employer policy.
Vacation payout: Ohio does not require statutory payout. Employer policy or practice governs. Once committed in writing or by practice, vacation becomes wages — late payment triggers contract claim exposure plus potential FLSA implications if the vacation amount included regular-rate components. Practice can establish binding obligation: long-standing payout patterns can be treated as implied policy.
Wage deductions: ORC § 4113.15 limits deductions to amounts authorized by law, court order, or written employee authorization. Deductions for unreturned property, training costs, or shortages without proper written authorization create separate exposure under both Ohio law and federal FLSA's anti-deduction principles.
Read the full Ohio final pay and wage payment timing guide →
0814-17 minor work permit + 30-min break per 5 consecutive hours
Ohio's minor employment framework applies to workers under age 18. Minors under 14 are generally prohibited from working, with limited exceptions (newspaper delivery, agricultural work, family business, child performers). Workers 14-17 can be employed in most jobs subject to age-appropriate restrictions and break requirements.
Work permits: workers ages 14-17 generally need a minor school certificate (work permit) issued by the school district where the minor resides. The certificate must be signed by the parent/guardian and approved by a school district representative. Workers 16-17 are exempt from the certificate requirement during summer vacation months. The work permit is the operational gate for minor employment.
Hour and time-of-day restrictions: Ages 14-15: no work during school hours; max 3 hours per school day, 8 per non-school day; max 18 hours per school week, 40 per non-school week; no work between 7 PM and 7 AM (9 PM in summer). Ages 16-17: max 8 hours per school day, 48 per non-school week; school-night limits during academic year.
Break requirement: minors must receive a 30-minute uninterrupted break for every 5 consecutive hours of work. Break is typically unpaid if the minor is fully relieved of duties. Time logs proving breaks were taken are required for ODOC compliance. Adults have no comparable break requirement under Ohio law.
Hazardous occupations: federal FLSA Hazardous Occupations Orders (HO 1-17) prohibit minors under 18 from operating power machinery, working at heights, certain chemical exposure, meatpacking, mining, and other dangerous occupations. Ohio adopts the federal HOs. Penalties: ODOC civil fines plus federal FLSA exposure (civil penalties up to $11,000-$70,000 per violation depending on circumstances).
Read the full Ohio minor employment — work permits and break requirements guide →