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Ohio Overtime Laws

Ohio Overtime Laws

Ohio Overtime Laws: A Comprehensive Guide

Overtime laws aim to ensure that employees in the state of Ohio are fairly compensated for their work, especially when they exceed the standard 40-hour workweek. These laws are designed to protect employees from being overworked without due compensation. This article aims to provide an in-depth discussion of the Ohio overtime laws, clarifying important points, providing updated information, and answering common questions.

Overview of Ohio Overtime Laws

Overtime wages in Ohio are required by both state and federal law. Non-exempt employees are entitled to overtime pay of time-and-a-half for any hours worked over 40 in a workweek, while exempt employees are not. Exemptions apply to certain types of employees and positions.

Ohio Overtime Law and the Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act (FLSA) is a federal law that defines the rights and obligations of employees, employers, and the government regarding minimum wage, overtime pay, child labor laws, and other labor issues. The Ohio Minimum Fair Wage Standards Act (OMFWSA) also determines the minimum wage and overtime laws applicable to Ohio employees. Both the FLSA and the OMFWSA apply to most private and public employers in the state of Ohio, and they have similar provisions regarding overtime laws.

Non-Exempt Employees

The majority of employees are non-exempt and are therefore entitled to overtime pay. The Ohio overtime laws require non-exempt employees to be paid an overtime rate of at least one and one-half times their regular rate. This means that employees are entitled to 1.5 times their regular pay for each hour worked in excess of 40 hours in a week.

Exempt Employees

Exempt employees, on the other hand, are not entitled to overtime pay and are paid on a salary basis. Exemption applies to certain types of employees, as established by FLSA and OMFWSA. These include executive, administrative, professional, and outside sales employees, among others.

Executive Exemption

To be exempt as an executive employee, an individual must meet all of the following criteria:

• The primary duty of the job must be managing the organization or a department.

• The individual must have the authority to hire or fire employees or make other personnel decisions.

• The individual must customarily and regularly direct the work of two or more employees.

Administrative Exemption

To meet the administrative exemption criteria, an individual must meet all of the following conditions:

• The primary duty must be the performance of non-manual or office work directly related to management or general business operations.

• The individual must exercise independent judgment and discretion on significant matters.

• The individual must be responsible for making decisions that affect the business as a whole.

Professional Exemption

The professional exemption applies to:

• Learned professionals, who must have an advanced degree beyond a college degree or have regular science, intellectual, or creative duties.

• Creative professionals, who must create, design, or develop original work for a recognized field, such as music, writing, graphic design, or software development.

Outside Sales Exemption

The outside sales exemption applies to individuals who customarily and regularly work away from their employer’s place of business and whose primary responsibility is to conduct sales outside the employer’s workplace.

Minimum Wage in Ohio

The current minimum wage in Ohio is $8.80 per hour for non-tipped employees and $4.40 for tipped employees. This represents an increase from $8.70 per hour and $4.35 per hour, respectively, in 2020. For employees under the age of 16, the minimum wage is $7.25 per hour. Employers are obligated to pay the higher of the state or federal minimum wage.

Overtime Rate in Ohio

The overtime rate in Ohio is 1.5 times the employee’s regular rate of pay. For instance, if an employee’s hourly rate is $20, the overtime rate is $30. The overtime rate applies to all hours worked in excess of 40 hours in a workweek.

Calculation of Overtime Pay

Employers must accurately compute the overtime pay of employees to avoid legal issues. The overtime pay is calculated as follows:

Regular rate of pay: This is the hourly rate, including bonuses, commission, and merit pay, divided by the total hours worked in a work week.

Overtime pay rate: This is one and one-half times the regular rate of pay.

Total overtime pay: This is the product of the overtime pay rate and the number of overtime hours worked.

For instance, if an employee works 45 hours in a workweek at an hourly rate of $20, the calculation is as follows:

Regular rate of pay: $20 x 45 = $900

Overtime pay rate: $20 x 1.5 = $30

Total overtime pay: $30 x 5 = $150

Therefore, the employee is entitled to a total of $1,050 at the end of the workweek, including the regular and overtime pay.

Compensation for Break Time

The law obligates employers to provide non-exempt employees short breaks throughout the workday, except that a lunch or meal period is not considered to be compensable work time if it lasts at least 30 minutes and the employee is fully relieved of work duties. Employees are entitled to 10 minutes of unpaid break time for every 4 hours worked. However, if the employer offers a break, the employee is paid for the break period.

Record Keeping Requirements

Employers must keep accurate and comprehensive records of each employee’s hours worked, compensation, and other employment-related data. The law requires that employers maintain these records for at least three years. Failure to maintain such records could lead to hefty legal penalties against employers who fail to comply.

Penalties for Non-Compliance

The law requires employers to comply with federal and state overtime laws. Failure to comply with these laws could lead to significant legal and financial penalties against the employer, including:

• Paying back unpaid overtime wages and other damages for up to 2-3 years.

• Paying liquidated damages, which equals the amount of unpaid overtime.

• Being subject to criminal charges and jail time for willful violations.

Conclusion

In conclusion, Ohio overtime laws aim to protect employees from being overworked without appropriate compensation. Non-exempt employees, in particular, are entitled to overtime pay if they work more than 40 hours in a workweek. Exemptions from overtime pay laws apply to certain types of employees based on their job duties and responsibilities.

Employers must accurately calculate overtime pay and keep detailed records of employees’ hours worked, compensation, and other employment-related data. Failure to comply with these laws could lead to significant legal and financial penalties against the employer, including back pay, liquidated damages, and even criminal charges. With updated Ohio minimum wages and overtime rates, employees must ensure that their employers comply with the law and that they receive the fair compensation that they are entitled to.


Quick Guide to Ohio Overtime Laws 

Ohio Overtime Laws and Procedure

You should always consider accessing the Ohio Revised Code for specific Ohio overtime laws.  Links to certain sections are provided farther below in this article.

One of the greatest resources on the internet that covers the broad categories of employment law is the following link.

If you need information about filing a wage claim because you believe your employer has violated your Ohio overtime laws, you should consider the following link.

If you believe you have worked more than 40 hours in one week or any Ohio overtime law in accordance to the “Fair Labor Standards Act of 1938” has been violated, you should consider a wage claim immediately.

According to Ohio overtime laws under the Commerce Bureau of Wage and Hour Administration, an employee can file a complaint upon the following conditions:

1. You were employed or are currently working on the project.

2. Any person under contract for public improvement.

3. Any person acting as a subcontractor for public improvement.

4. Any organization that is authorized to represent employees in the categories above for the negotiation of wages, hours, terms, or more.

5. Any association having members associated with the first two categories above.

In order to file a complaint for the violation of an Ohio overtime law, you’ll want to follow the steps provided by the CBWHA.  These steps include the following:

1. Download the form and print a copy.

2. Answer all of the questions on the form carefully and write legibly.  Sign, date, and notarize the form.

3. Provide the contractor’s name, business, address, county, and telephone number.

4. Provide any copies of financial documents you believe are important to proving an Ohio overtime law was violated.

5. Be sure your name, address, SSN, and telephone are correct and regularly updated.

Specific Ohio Overtime Laws

Ohio overtime law is located under section 4111.03 of Chapter 4111: Minimum Fair Wage Standards.  The Ohio overtime laws provided under this section address general employees and employees under the county.

Section (a) states how overtime is generally calculated under Ohio overtime law: “An employer shall pay an employee for overtime at a wage rate of one and one-half times the employee’s wage rate for hours worked in excess of forty hours in one workweek…[and] under the exemptions of section 7 and section 13 of the “Fair Labor Standards Act of 1938…”

Other sections that address Ohio overtime laws are 4111.04 and 4111.08.  According to section 4111.04, the director of commerce is allowed to initiate an investigation and collect all necessary documents at any given time.  If the employer refuses, the director of commerce is allowed to issue a subpoena.

Section 4111.08 of Ohio overtime law states that an employer must keep all valuable information about wages and hours of employees for at least three years.  These documents can help the director of commerce investigate any suspected violations of Ohio overtime law.