How do you calculate overtime pay in Ohio?

Calculating overtime pay in Ohio can be a challenge, especially with varying rules for different types of employees. Understanding how to calculate overtime is crucial to ensure compliance and fair compensation.

This article provides a comprehensive guide on calculating overtime pay, covering the specific methods and calculations required for different types of employees.

Which Overtime Laws Apply in Ohio?

Ohio follows the federal and state overtime laws. These laws establish overtime standards and ensure that employees are fairly compensated for hours worked:

• Fair Labor Standards Act (FLSA): Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay at one and a half times (1.5) their regular rate of pay for hours worked beyond 40 in a workweek. The FLSA defines several exemptions, including executive, administrative, professional, highly compensated, and outside employees. In addition, employees must earn at least $844 per week ($43,888 per year) to qualify for most exemptions.
• Ohio Minimum Fair Wage Standards Act: Under the Ohio Rev. Code § 4111.03, private sector employers must pay overtime at one and a half times the employee’s regular wage for hours worked over 40 in a workweek, which aligns with the FLSA provisions. Agricultural employees, specific public sector employees, and employees working for motor carriers under certain conditions are exempt from this overtime requirement.

How Much is Overtime Pay in Ohio?

Overtime pay in Ohio is calculated based on the standard overtime rate of one and a half times the employee’s regular hourly rate. If the minimum wage in Ohio is $10.45, the minimum overtime pay is $15.68 per additional hour.

If you want to learn more, check out our guide on Ohio Overtime Laws. 

Who is Eligible for Overtime Pay in Ohio?

The FLSA primarily determines eligibility for overtime pay in Ohio. Most hourly employees and some salaried employees are classified as non-exempt and are entitled to overtime pay. Non-exempt employees do not fall under specific exemptions set by the FLSA. To qualify for overtime, employees must work more than 40 hours in a workweek.

Check out our guide on Overtime Rights in Ohio.

In Ohio, overtime for hourly employees is calculated based on the FLSA. Hourly employees are entitled to overtime pay for hours worked over 40 in a workweek. To calculate overtime pay for hourly employees, employers must:

• Determine the regular hourly rate: Identify the employee’s standard hourly wage. In Ohio, the minimum hourly rate is $10.45.
• Calculate the overtime rate: Multiply the hourly wage by one and a half times to determine the overtime rate. If the employee’s hourly rate is $10.45, the overtime rate would be $15.68 ($15.68 x 1.5).
• Track hours worked: Determine the hours worked beyond 40 in a workweek. Any hours worked beyond 40 are considered overtime. Employers must ensure that they accurately track the number of hours employees work each week.
• Calculate overtime pay: Multiply the overtime rate by the number of overtime hours worked. If employees work ten overtime hours a week, their overtime pay would be $156.80 ($15.68 x 10).

You can read our guide on Your Rights as an Hourly Employee in Ohio to learn more.

For salaried employees, overtime calculations depend on whether they are classified as exempt or non-exempt under FLSA. Non-exempt salaried employees are entitled to overtime pay for hours worked beyond 40 in a workweek. To calculate overtime pay for salaried employees in Ohio, the employer must:

• Determine the employee’s annual salary: Identify the employee’s annual salary. Salaried employees must earn below $43,888 to be eligible for overtime pay.
• Calculate the weekly salary: Divide the annual salary by 52 to get the weekly salary. If the yearly salary is $42,120, the weekly salary would be $810 ($42,120 / 52).
• Determine the regular hourly rate: Divide the weekly salary by 40 to find the regular hourly rate, assuming a standard 40-hour workweek. If the employee earns a weekly salary of $810, the hourly rate would be $20.25 ($810 / 40).
• Calculate the overtime rate: Multiply the regular hourly rate by 1.5 to get the overtime rate. For a $20.25 hourly rate, the overtime rate would be $30.38 ($20.25 x 1.5).
• Calculate overtime pay: Multiply the overtime rate by the number of overtime hours worked. For example, if the employee worked ten overtime hours a week, the overtime pay would be $303.80.

Check out our guide on Your Rights as a Salaried Employee in Ohio.

Commission-based employees are entitled to overtime pay if they are non-exempt. To calculate overtime for commission employees, the employer must:

• Determine the total earnings: Calculate the employee’s total earnings for the workweek, including commissions. This is the sum of the base salary or hourly wage plus any commissions earned.
• Calculate the regular hourly rate: Divide the total weekly earnings by the total number of hours worked in the week. For example, if an employee earned $800 in commissions and their base wage is $500 for the week, the total weekly earnings would be $1,300. If the employee has worked 50 hours a week, the regular hourly rate would be $26 ($1,300 / 50).
• Determine the overtime rate: Multiply the regular hourly rate by 1.5 to find the overtime rate. For a regular hourly rate of $26, the overtime rate would be $39 ($26 x 1.5).
• Calculate overtime pay: Identify the number of overtime hours worked over 40. Multiply the overtime rate by the overtime hours. For instance, if the employee worked ten overtime hours, the overtime pay would be $390 ($39 x 10).

Piece rate employees are paid per unit produced or task completed rather than per hour. To calculate overtime for piece rates in Ohio, employers must:

• Determine the piece rate: Identify the rate the employee is paid per unit of work completed, such as per item produced or task completed.
• Calculate the total earnings: Multiply the number of units completed by the piece rate to find the employee’s weekly earnings.
• Calculate the regular hourly rate: To determine the regular hourly rate, divide the total earnings by the total number of hours worked in the workweek. For example, if employees earned $800 for 40 work hours, their regular hourly rate would be $20 ($800 / 40).
• Determine the overtime rate: Multiply the regular hourly rate by 1.5 times to find the overtime rate. For a $20 hourly rate, the overtime rate would be $30 ($20 x 1.5).
• Calculate overtime pay: Identify the number of overtime hours worked in the week. All hours worked beyond 40 a workweek are considered overtime. For instance, if the employee worked eight overtime hours, their pay would be $240 ($30 x 8).

The statute of limitations for claiming unpaid overtime in Ohio depends on whether the claim is pursued under state or federal law.

Under federal law, the statute of limitations for filing a claim for unpaid overtime is generally two years from the date the claim arose. However, if the employer’s violation is found to be willful, the statute of limitations extends to three years.

Under state law, the statute of limitations for filing a claim for unpaid wages, including overtime, is also two years.

What are the Recordkeeping Requirements for Overtime Wage Compliance in Ohio?

Ohio employers must adhere to specific recordkeeping requirements for overtime wage compliance. These requirements ensure employers maintain accurate work hours and wage records to verify compliance with federal and state overtime laws, which include:

• Time Records: Employers are required to keep detailed records of the hours employees work each day. This includes recording when an employee starts and stops work and any break periods.
• Payroll Records: Employers must maintain payroll records showing the employees’ total wages. This includes regular wages, overtime wages, and any deductions made.
• Record Retention: Records must be kept for at least three years
• Employee Information: Employers should maintain records of each employee’s name, address, occupation, and the period they are employed.
• Overtime Information: Employers should record the hours worked beyond the standard workweek and the overtime pay rate for overtime compliance.
• Timekeeping Methods: Employers can use various timekeeping methods, such as manual timecards, automated time clock software, or other timekeeping attendance. The records must be accurate and reliable.

Employers must make these records available for inspection by the Ohio Bureau of Wage and Hour Division or any other authorized governmental agency upon request.

Learn more about Ohio Labor Laws through our detailed guide.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.