What is the minimum wage and overtime hourly rate in Ohio?

Minimum Wage

Ohio law regarding minimum wage is described in Section 34a of Article II of the Ohio Constitution and Chapter 4111 of the Ohio Revised Codes (ORC), which is commonly referred to as the Ohio Minimum Wage Standards Act (MWSA).

In 2006, Ohio voters amended their state constitution by passing Issue 2, the Ohio Fair Minimum Wage Amendment. Effective January 1, 2007, the minimum wage for Ohio workers increased from $5.15 to $6.85 per hour, indexed to inflation. In 2008, the minimum wage increased to $7.00 per hour. As a result of inflation, it increased to $7.30 per hour in 2009 and 2010.

Ohio’s minimum wage covers almost all employees in Ohio. However, it does not apply to employees under age 16, employees who receive tips, and employees of small businesses (less than $267,000 in annual gross revenues in 2010). Tipped employees may be compensated at no less than one-half the minimum wage, and the hourly rate of pay plus tips must equal at least the minimum wage for all hours worked. The minimum wage is $7.25 per hour for those of small businesses and those under age 16.

The exempt employees include, but not limited to individuals employed:

• as a baby sitter or live-in companion (whose principal duties do not include housekeeping);
• as sales persons compensated by commissions;
• in services of a charitable nature;
• at a camp or recreational area for minors, if operated by a nonprofit organization;
• employees of a solely family owned business who are family members of an owner.

Ohio employers must keep for three years after each employee’s last day of work a record of the employee’s:

• Name;
• Address;
• Occupation;
• Rate of pay;
• Hours worked each day and each work week by the employee;
• Amount paid each pay period to the employee.

Employers who fail to comply with MWSA will face:

1. Complaints by employees, persons acting on their behalf and/or any other interested party to the State of Ohio.
2. Investigations by the State of Ohio on its own initiative; and
3. Lawsuits by the State of Ohio, an employee, or persons acting on behalf of an employee.

An action for equitable and monetary relief must be brought against the employer within three years of the violation or of when the violation ceased if it was of a continuing nature, or within one year after notification to the employee of final disposition by the state of a complaint for the same violation, whichever is later. ORC 4111.14(K).

The employer must, within 30 days of the finding of its violation:

• Pay the employee’s back wages;
• Pay damages equal to an additional two times the back wages;
• Pay the employee’s costs and reasonable attorneys’ fees.   

In other words, the employer will have to pay three times the unpaid minimum wages, plus the employees’ attorneys’ fees.

MWSA also prohibits employer retaliation against people who provide assistance to employees asserting their rights. Employers who retaliate must pay an amount “sufficient to compensate the employee and deter future violations,” which amount is not less than $150 for each day that the violation continued, presumably after the employee or other person asserted their rights.

Many state labor laws are governed by the United States Department of Labor and are outlined in Fair Labor Standards Act (FLSA). Beyond these federal mandates, Ohio has several added rules regarding wages and overtime. Ohio law regarding overtime is described in Section 3 of Chapter 4111 of the Ohio Revised Codes (ORC).

Overtime Hourly Rate

In Ohio, employers are required to pay an hourly rate of 1.5 times the normal pay rate when an employee works more than 40 hours in a week. The daily work hour amount is not relevant. The employer has to pay overtime only when the employee works more than 40 hours in a week.

Not all employers have to pay overtime. For example, agricultural employers are not required to pay overtime. Although almost all employees in Ohio are entitled to overtime pay, certain employees are exempt from overtime, as long as they make at least $455 a week, for example:

• Salaried executive;
• Administrative;
• Professional and outside sales employees;
• Commissioned sales employees;
• Employees of seasonal or recreational facilities.

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