Employment and labor laws in Ohio [Updated 2024]

Employment and labor laws, influenced by the Fair Labor Standards Act (FLSA), have been established to ensure fair treatment of employees and maintain a balance between their rights and the rights of employers. While federal laws provide a baseline, state-specific Ohio employment laws address concerns and regulations unique to Ohio residents. For instance, Ohio minimum wage laws and overtime requirements might differ slightly from other states. 

Want to take the guesswork out of complying with Ohio’s intricate regulations? Scale your business faster by letting Rippling’s Professional Employer Organization service handle your tax registration and management.

Employment vs. labor law: What’s the difference?

While many tend to use the terms "employment law" and "labor law" synonymously, they represent distinct legal areas in Ohio just as they do nationally. The core distinction between the two rests on the parties involved. If the matter pertains to the relationship between an employer and an individual employee, it's under the domain of employment law. However, when the context shifts to dealings between an employer and a collective group, such as unions, it falls under labor law.

To shed more light, here’s a concise breakdown of what each law encompasses in Ohio:

Employment Law:

• Regulates aspects like work hours, wage rates, overtime provisions, and hiring practices
• Offers protection against workplace discrimination based on factors like race, national origin, or gender
• Addresses issues like retaliation against employees and whistleblowing
• Pertains to child labor laws and rules about the number of hours children can work

Labor Law:

• Concerns itself primarily with union-related matters in Ohio, including the rights to unionize and collective bargaining
• Oversees the collection and utilization of union dues
• Regulates union membership and the legalities surrounding collective bargaining agreements in the state

Wages and hours in Ohio

Ohio's hour and minimum wage laws are crucial for employers to understand. In this section, we'll dive into the wage and hour regulations that operate in Ohio.

Minimum wage in Ohio

The minimum wage in Ohio, as of 2024, stands at $10.45 per hour for non-tipped employees, which is above the federal minimum wage of $7.25. While Ohio doesn't have city-specific variations as some states do, minimum wage laws can change, so it’s crucial to always stay up-to-date.

When determining hourly wages for employees, Rippling can automatically flag minimum wage violations based on state regulations where employees are located. This is particularly useful for ensuring compliance in states like Ohio, where adhering to state-specific minimum wages is mandatory.

Overtime pay in Ohio

Overtime pay is a requirement under Ohio labor laws, ensuring employees are compensated fairly for extended work hours. In Ohio, employees who work more than 40 hours in a workweek must receive overtime pay at a rate of 1.5 times their regular rate of pay.

To help employers adhere to overtime laws and requirements in Ohio, Rippling’s payroll software instantly applies the right pay rates when an employee’s weekly hours exceed the standard number of hours and trigger overtime pay requirements.

Pay transparency in Ohio

Though pay transparency is a budding concept with laws being established across the US, Ohio doesn't have specific statewide pay transparency laws in place. Cincinnati and Toledo have passed local ordinances prohibiting employers with more than 15 employees from inquiring about salary history.

To ensure alignment with these evolving pay transparency norms, Rippling's Headcount and Compensation Bands feature is indispensable. Rippling not only enforces compensation bands during the onboarding process but also alerts employers to out-of-band salary adjustments. This way, businesses can green-light exceptions while barring others, maintaining compliance and fairness.

Breaks and rest periods in Ohio

Meal and rest breaks aren't required under Ohio law for adult employees. However, if an employer chooses to provide breaks, they must follow federal guidelines. This means short breaks between five and 20 minutes should be paid. Meal breaks lasting 30 minutes or longer can be unpaid.

Child labor laws establish different guidelines for workers under the age of 18. Minors are entitled to a rest period of 30 minutes for every five hours worked.

Leaves of absence in Ohio

Leaves of absence are an essential component of the employer-employee relationship. For instance, the Uniformed Services Employment and Reemployment Rights Act (USERRA), allows for military leave if certain conditions are met. Some leaves, such as sick leave, are unpaid.

While the US has federal laws in place, like the Family and Medical Leave Act (FMLA), to protect employees' jobs when they need time off, each state can have its own rules.

Since Ohio follows federal FMLA guidelines, the eligibility conditions are as follows:

• Employees must have worked for the employer for at least 12 months.
• Employees must have worked at least 1,250 hours during the 12 months preceding the start of the leave.
• The employer must have 50 or more employees within a 75-mile radius.

Reasons employees can take leave in Ohio include:

• The birth and care of a newborn child
• The adoption or foster care placement of a child
• To care for an immediate family member (spouse, child, or parent) with a serious health condition
• When the employee is unable to work due to a serious health condition

Pregnancy disability leave in Ohio

Ohio doesn't have a specific pregnancy disability leave law. However, employers with four or more employees must provide a reasonable amount of leave to eligible employees experiencing pregnancy-related disabilities or childbirth. State employees are eligible for up to six weeks of paid leave for similar conditions plus the adoption of a child.

Paid sick leave in Ohio

Ohio has no statewide law requiring employers to provide paid sick leave. However, employers in Ohio can offer this as a benefit. When sick leave is provided, employees can take leave for a number of reasons, including:

• Their own illness, injury, or health condition
• To care for a family member with an illness, injury, or health condition
• Medical care or counseling for physical or psychological injury due to domestic abuse or sexual assault
• Closure of the employee's place of business or child's school/daycare by order of a public official due to a health emergency

Rippling’s tools are tailor-made for managing complexities around leave policies. Whether you’re setting up a new policy or trying to navigate existing ones, Rippling allows you to automate and customize your leave policy. Maintain a clear overview of how employees are utilizing leave while staying compliant with state regulations.

Workplace safety in Ohio

Ensuring a safe workplace is a shared responsibility between employers and employees. Workplace safety goes beyond just preventing accidents; it encompasses creating a healthy environment where employees feel secure and can operate at their best.

Workplace safety, overseen by the Fair Labor Standards Act (FLSA), requires employers to maintain certain standards as outlined below. Employers are generally responsible for identifying risks, implementing safety protocols, and ensuring employees are trained on them.

Ohio, like many other states, has its workplace safety regulations, but it primarily follows federal guidelines set by the Occupational Safety and Health Administration (OSHA). However, the state can enforce stricter safety requirements based on the industries prevalent in the region or specific concerns arising from workforce demographics.

Employee protections in Ohio include:

• Right to a safe workplace: Employers are required to provide a workplace free from recognized hazards.
• Right to be informed: Employers must inform employees about hazards through training, labels, alarms, color-coded systems, chemical information sheets, etc.
• Right to report and request: Employees can report a job-related injury or illness and request an inspection of their workplace without the fear of retaliation.
• Protection from toxic substances: Ohio employers must comply with OSHA standards and provide protection against exposure to harmful substances. This includes providing personal protective equipment at no charge.

In terms of specific state requirements, Ohio doesn’t necessitate an Injury and Illness Prevention Program (IIPP). However, employers are always encouraged to adopt proactive measures, and developing an IIPP can be an effective way to educate employees about potential hazards in their workplace.

Navigating workplace safety requirements can be complex. Rippling PEO offers a convenient pay-as-you-go workers’ comp plan. With this plan, there's no need to pay upfront for the entire year. This makes scaling your business in Ohio (and throughout the US) easier and stress-free, ensuring your focus remains on growing your venture while maintaining a safe environment for all.

Discrimination and harassment laws in Ohio

Ohio, like many states, has drawn from the foundational principles of federal anti-discrimination laws such as the Civil Rights Act. However, the state goes above and beyond in certain areas to ensure a comprehensive protective framework for its workers.

Ohio Civil Rights Act

The primary anti-discrimination law in Ohio is the Ohio Civil Rights Act. While it provides many of the same protections as federal laws, the Ohio Civil Rights Act offers several unique features:

• Broader coverage: While federal laws like Title VII of the Civil Rights Act (which prohibits employers from discriminating against race, color, religion, sex, or nationality) typically apply to employers with 15 or more employees, the Ohio Civil Rights Act covers employers with as few as four employees. This means that smaller businesses must also adhere to non-discrimination principles.
• Expansive definition of disability: Ohio's definition of “disability” is more inclusive than the federal Americans with Disabilities Act (ADA). While the ADA focuses on conditions that substantially limit major life activities and tend to be long-term, Ohio's law covers both temporary and permanent impairments without the necessity of them being “substantially limiting.” For example, under Ohio law, a temporary condition like a broken leg might be protected, whereas it may not be under the ADA.
• Inclusion of military status and ancestry: The Ohio Civil Rights Act includes military status and ancestry as protected classes, which aren’t explicitly covered under federal anti-discrimination laws.

Protected characteristics in Ohio include:

• Race and color
• Religion
• National origin
• Age (40 and above)
• Sex (including pregnancy)
• Disability
• Military status
• Ancestry

Scenarios of potential discrimination include:

• Refusing to hire a candidate because of their military status
• Providing lesser benefits to someone due to their ancestry
• Not accommodating a wider range of disabilities recognized by Ohio 

Harassment, a subset of discrimination, can manifest in numerous ways. It might be in the form of derogatory remarks, slurs, or even physical harm based on any protected characteristics. Not every negative behavior amounts to harassment. It's only considered illegal when enduring the behavior is a condition of employment, or it creates a toxic work environment.

For example, sporadic teasing might not be harassment, but constant, severe derision based on one's national origin or military status is unacceptable. Recognizing the line between casual banter and harassment is critical.

While Ohio doesn't have a statewide mandate on the frequency of sexual harassment training, many businesses adhere to best practices by providing such training every one to two years. 

Rippling's Learning Management System provides an invaluable resource, pre-loaded with essential sexual harassment training tailored to align with state regulations. For businesses in Ohio, this means access to modules reflecting Ohio's specific legal nuances.

Employers must recognize that they can be held liable for discrimination and harassment, even if they’re unaware of its occurrence. Fostering an inclusive work atmosphere is paramount, and any oversight can result in significant legal repercussions.

Unions in Ohio

A union is an organized group of workers who unite to make decisions about factors affecting their work, such as wages, work hours, and working conditions. Unions, protected by the Fair Labor Standards Act (FLSA) and other labor laws, provide a platform for collective bargaining in Ohio, ensuring that the rights of employees are upheld. 

Simply put, it's the process through which employees negotiate as a unified group with their employers to establish terms of employment.

Federal rights of employees regarding unions include:

• The right to join or assist a union
• The right to engage in collective bargaining for better terms and conditions at work
• The right to discuss terms and conditions of employment or union organizing with their coworkers or a union
• Protection from unfair treatment or retaliatory actions by employers for their union-related activities

It's essential for employers to understand that threatening employees based on their union involvement, be it support or non-support, is illegal. For instance, employers can't undermine an employee's job security if they decide to join or promote a union.

As for Ohio's stance on unions, it has its own set of laws governing them. One of the notable mentions is the right-to-work law. Ohio is a right-to-work state, which means employees can't be required to join a union or pay union dues as a condition of their employment.

FAQs about Ohio labor and employment laws

Are independent contractors covered under Ohio employment laws?

Generally, independent contractors aren’t covered under employment laws in Ohio. Accordingly, the distinction between independent contractors and employees is crucial, and it's not just the IRS that has criteria for classification. For purposes like workers' compensation, Ohio uses a 20-factor test derived from the IRS but adapted to its state-specific needs. 

Misclassifying an employee in Ohio can lead to significant penalties, especially concerning unpaid workers' compensation premiums. 

Does at-will employment exist in Ohio?

Yes, Ohio is an at-will employment state. This means either the employer or the employee can terminate the employment relationship at any time, for any reason, as long as it doesn't violate federal or state laws—such as discriminatory practices based on national origin or retaliation against whistleblowers.

What privacy rights do employees have in Ohio?

Employees in Ohio have rights to privacy in certain areas, like personal belongings or certain records. For example, social media privacy laws might restrict employers from demanding access to personal social media accounts. However, these rights may be limited if there's a valid business reason or if the employee has provided consent. 

Are background checks legal in Ohio?

Yes, background checks are legal in Ohio. Employers must follow both federal and state regulations, such as the Fair Credit Reporting Act (FCRA) and the Ohio Civil Rights Commission (OCRC).

In Ohio, employers can generally check criminal history (except for sealed arrest or non-conviction records), employment records, and educational qualifications. Some checks, like medical history, are restricted by federal laws. Always consult legal guidance to ensure compliance.

Are whistleblowers protected in Ohio?

Absolutely. Whistleblowers, those who report illegal activities or violations within an organization, are protected from retaliation under Ohio law. These laws ensure that employees can report wrongdoing without the fear of retribution.

Is workers’ compensation coverage required in Ohio?

Yes, with very few exemptions, Ohio employers are mandated to have workers’ compensation insurance for their employees. The Ohio Department of Commerce oversees this, ensuring employees who get injured on the job receive proper benefits.

Exemptions include: 

• Sole proprietors, partners, and certain LLC members
• Agricultural employers (with limited payroll or specific family employees)
• Domestic workers (depending on their working hours)
• Casual labor
• Volunteers for nonprofit organizations
• Certain corporate officers
• Federal employees
• Independent contractors

Are there required healthcare benefits in Ohio?

While the federal Affordable Care Act mandates certain employers to offer healthcare benefits, Ohio does not have specific state laws mandating additional health benefits. However, employers who offer healthcare must ensure that they don’t engage in discriminatory practices when providing health benefits.

Are Ohio employers required to provide bereavement leave?

Ohio state law doesn’t specifically require employers to offer bereavement leave. However, many companies provide it as part of their broader leave policies or talent management strategy.

What employee protections are available in Ohio if layoffs occur?

In Ohio, if a company undergoes large-scale layoffs or facility closures, it may fall under the federal Worker Adjustment and Retraining Notification (WARN) Act, which requires employers to provide a 60-day notice. Beyond that, Ohio doesn’t have additional state-specific requirements, but affected employees may be eligible for unemployment benefits or other state resources during their transition.

How do payday requirements and employment contracts work under Ohio employment laws?

When it comes to payment, it's crucial for employers to understand the payday requirements and the specifics about when they need to pay employees under Ohio employment laws:

• Employers must pay employees at least twice a month. Exempt employees can be paid monthly.
• Final paychecks should be provided by the next regular payday upon employment termination.
• Deductions, other than mandatory ones, need a prior written agreement.

Employment contract requirements in Ohio include:

• Ohio typically follows "at-will" employment, but contracts can specify different terms.
• While not always required, written agreements on wage rates, job duties, and termination grounds are recommended.
• Non-compete agreements are allowed but must be reasonable in scope, area, and duration to be valid.

Disclaimer: Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.