Running a successful business implies compliance with various federal and state laws. In a state like Ohio, employers are expected to be aware of the application of federal and state regulations that combine to form the Ohio overtime laws.
Labor laws in Ohio extend far over the general minimum wage guidelines and cover overtime regulations for various types of employment. In this guide on Ohio law on overtime pay, we aim to provide a comprehensive overview of these laws, focusing on the latest updates for 2024.
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Ohio Overtime Rules
In Ohio, overtime is mandatory by law, and all eligible employees are entitled to earn overtime if they work over 40 hours in a workweek. The state enacts the federal Fair Labor Standards Act (FLSA) and its requirements for all employers. In doing so, overtime employees must be compensated 1.5 times their regular hourly wage. In addition to the FLSA, some other acts govern overtime pay in the state.
FLSA Laws
The FLSA or the Fair Labor Standards Act states a minimum hourly wage i.e. 40 hours per week overtime rules. It even sets timekeeping requirements, minimum wage, child labor and various other standards. The rules affect part time as well as full time workers in the private sector as well as in state, local and federal governments. Also, the US Department of Labor utilizes job duties and annual pays to determine who is to get additional pay for overtime. Some employees are not there on overtime pay rules due to their annual pay and duties and are called as exempt employees. And the ones that are covered under non-exempt are those who have to be paid for all hours worked including overtime when they work for over 40 hours in a week.
The FLSA protects the employees against unfair worker practices. The FLSA regulations specify when the workers are working, when they should be paid overtime and what should be the minimum wage. The FLSA applies to the employers with annual sales of $500,000 or more or those who are engaged in interstate work.
Portal to Portal Act
The Portal to Portal Act is an amendment made to the Fair Labor Standards Act (FLSA) in 1947 to clarify further what type of time is considered compensable working time under federal law. In Ohio, as in other states, this Act helps determine when an employee’s activities are considered part of their job duties and, therefore, must be paid.
According to the Portal to Portal Act, any time spent traveling to and from the actual place of work from the employment site and preliminary and postliminary activities that are integral to the job constitute compensable time.
Therefore, traveling time is also compensable in Ohio if an employee travels from his office to a work site.
Ohio Minimum Fair Wage Standards Act
The Ohio Minimum Fair Wage Standards Act is a state law that governs the state’s minimum wage and overtime requirements. As of 2024, the minimum wage in Ohio is $10.45 per hour for non-tipped employees and $5.25 per hour for tipped employees, with the expectation that tips will bring their total earnings to at least the standard minimum wage.
For overtime, the Act mandates that employees be paid 1.5 times their regular pay rate for all hours worked over 40 in a workweek.
State Law Remedies / Penalties for Overtime
Employers who fail to comply with Ohio’s overtime laws may face significant penalties. The penalties depend on the severity of the case and can include back pay for unpaid overtime, liquidated damages equal to the unpaid overtime, and civil penalties.
- If the employer misclassified the employees as exempt and not eligible for getting overtime pay, the employer must pay a penalty for the same.
- Employees are also entitled to damages that may be as old as 3 years.
- Additionally, employees may sue for attorney’s fees and court costs, not limited to compensation for emotional distress.
- Any violation of the Ohio overtime rules can be reported to the Ohio Department of Commerce’s Division of Industrial Compliance. The government is responsible for enforcing these laws and can initiate investigations and audits in response to complaints or apparent violations.
Compensatory Time in Ohio
Compensatory or ‘comp’ time is the time off offered as an alternative to overtime pay. As per the federal FLSA laws, no private employer can offer compensatory time. The state of Ohio extends the same policy and prohibits comp time for private employers.
However, some public sector employees are allowed to offer comp time. Eligible public sector employees may receive comp time at 1.5 hours for each overtime hour. However, it must be agreed upon between the public employer and the employees.
Receiving Overtime Payment in Ohio
All non-exempt full-time and part-time employees are entitled to receive overtime pay without exception. Employers must pay 1.5 times the employee’s regular pay rate for any hours worked over 40 in a workweek.
Ohio’s standard overtime pay rate is 1.5 times the employee’s regular pay rate. For instance, if an employee’s regular hourly rate is $20, their overtime pay rate would be $30 per hour for each hour worked beyond 40.
This regulation ensures that employees are fairly compensated for extra work and helps prevent exploitation.
Refusing to Work Overtime in Ohio
Ohio doesn’t have a law mandating overtime, so the federal law applies, which gives employers the right to force employees to work overtime. Refusal to work overtime can lead to disciplinary action or dismissal from service. However, the rule can be superseded if such a provision exists in any employment contract or collective bargaining agreement.
However, collective bargaining agreements should mention the specific provisions about overtime work and employee rights, potentially providing more protections than state law.
Who is Eligible for Overtime?
Eligibility for overtime pay in Ohio depends on the classification of the employee. All non-exempt employees- full-time and part-time – are eligible for overtime pay. Additionally, employees should work over 40 hours in a workweek. The state doesn’t consider daily or consecutive days for overtime calculations.
Employees exempted from overtime typically include those who usually hold executive, administrative, or professional positions and are paid more than $684 a week on a salary basis. They are not eligible for overtime.
FLSA rules exclude some employee groups from overtime pay regulations, irrespective of their salary and duties. These employees include but are not restricted to physicians, attorneys and teachers. Such employee groups are some of the examples who are not eligible for overtime pay.
Overtime Calculation for Hourly Employees
For hourly employees, overtime is calculated by multiplying the hours worked by 1.5 times the regular hourly rate. For example, if an hourly employee earns $15 per hour and works 50 hours in a week, their overtime calculation would be:
Regular hours: 40 x $15 = $600
Overtime hours: 10 x ($15 x 1.5) = $225
Total pay: $600 + $225 = $825
Overtime Calculation for Part-Time Employees
Part-time employees are entitled to overtime pay if they work over 40 hours in a workweek. The calculation is similar to that for full-time hourly employees.
For instance, if a part-time employee earns $12 per hour and works 45 hours in a week, their overtime calculation would be:
Regular hours: 40 x $12 = $480
Overtime hours: 5 x ($12 x 1.5) = $90
Total pay: $480 + $90 = $570
Overtime Calculation for Salaried Employees
Salaried non-exempt employees are also entitled to overtime pay. Their regular hourly rate is calculated by dividing their weekly salary by the number of hours the salary is intended to cover. For example, if a salaried employee earns $1,200 per week and the salary covers 40 hours:
Regular hourly rate: $1,200 / 40 = $30 per hour
Overtime hours: 5 x ($30 x 1.5) = $225
Total pay: $1,200 + $225 = $1,425
Overtime Calculation for Commission-Based Employees
For commission-based employees, the regular hourly rate is determined by dividing total earnings in the workweek by the total hours worked. The overtime rate is then 0.5 times the regular rate for each overtime hour.
For example, if an employee earns $1,500 in commissions and works 50 hours a week:
Regular hourly rate: $1,500 / 50 = $30 per hour
Overtime hours: 10 x ($30 x 0.5) = $150
Total pay: $1,500 + $150 = $1,650
Exemptions from the Overtime Requirement
There are exemptions in the overtime rules in Ohio based on the job responsibilities under the state and federal laws.
The state of Ohio overtime laws are not applicable for:
- Live-in babysitters
- Adult caregivers
- Nonprofit children’s camp workers
- Farm workers
- Any members of the employer’s immediate family
Under FLSA, the following categories are exempt from overtime:
- If they primarily manage the enterprise, executives direct the work of at least two other employees and have the authority to hire or fire other employees.
- Administrative employees who perform office or non-manual work and exercise discretion and independent judgment.
- Professional employees use advanced knowledge, including those in learned professions or creative fields.
- Outside sales employees are exempt from overtime pay if their primary duty is making sales away from the employer’s place of business.
How Truein Can Help with Overtime Pay Management?
Truein is a robust time and attendance system offering compelling overtime pay management features enabling compliance with labor laws.
Truein provides real-time tracking of employee work hours, including overtime, for accurate recordkeeping. Furthermore, overtime calculations can be automated based on company policies. This reduces the risk of manual errors and ensures compliance with federal and state labor laws.
Customizable templates further extend the scope of Truein, allowing employers to customize overtime policies according to their specific needs. Whether defining different overtime rates, setting thresholds for overtime hours, or applying various rules for different employee categories, Truein can seamlessly accommodate these requirements.
Compliance with labor laws becomes much less challenging with Truein’s features, advanced reports, and analytics. Explore its complete features for more information on how Truein can help with overtime pay management.
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Conclusion
Complying with Ohio’s overtime laws is essential for employers to maintain fair labor practices and avoid legal penalties. When both state and federal laws are involved in complying with overtime rules, employee eligibility and calculation can become challenging. As the accurate classification of employees, diligent recordkeeping, and clear overtime policies are vital for compliance, tools like Truein can streamline overtime management, ensuring real-time tracking and automated calculations.
FAQs
Q. Are all employees in Ohio eligible for overtime pay?
Ohio implements some exemptions under the FLSA and Ohio law, excluding certain employees from overtime pay. These include certain executive, administrative, professional, and outside sales positions.
Q. Are there any specific recordkeeping requirements for overtime in Ohio?
Yes, employers in Ohio are required to keep accurate records of employee work hours, including overtime hours, for at least three years.
Q. Do part-time employees qualify for overtime pay in Ohio?
Yes, part-time employees qualify for overtime pay in Ohio if they work more than 40 hours in a workweek. The overtime rate is 1.5 times their regular rate of pay.
Q. Are there any exemptions to Ohio's overtime laws for specific industries?
Yes, agricultural workers, seasonal amusement or recreational employees, and certain commissioned employees in retail and service establishments may be exempt from standard overtime requirements.
Q. Are salaried employees entitled to overtime in Ohio?
Salaried employees earning less than $684 weekly are entitled to overtime pay.
Q. How is the regular pay rate calculated for overtime purposes in Ohio?
Typically, the regular pay rate for overtime is calculated by dividing the total earnings in the workweek by the total hours worked. The overtime rate is 1.5 times the regular pay rate for each overtime hour.
