Compliance Watch:

What are my rights as a salaried employee in Ohio?

A salaried employee in Ohio is any worker who receives a predetermined fixed amount of compensation from their employer on a regular basis. Employers in the state are required to pay their salaried employees at least twice a month. Further, the salaries must be paid on or before the 15th day of each month for work done in the first half of the month and on the first day of each month for work done in the second half of the previous month. However, Ohio salaried employees laws make provisions for employers and employees to enter into private agreements for longer time lapses between paydays. 

Ohio labor laws explicitly state that salaried workers in state can receive their compensation in cash or checks. However, the laws do not prohibit other common forms of payment such as direct deposits or payroll cards explicitly. 

In Ohio, salaried employment is categorized into two groups based on eligibility for overtime. The first group includes salaried employees with exempt status, who are not eligible for overtime and receive consistent compensation even when their hours worked exceed the overtime threshold. In contrast, non-exempt employees in Ohio are entitled to overtime pay for any hours worked beyond 40 hours in a workweek as stipulated by state labor regulations.

These are some of the general differences between salaried and hourly employees in Ohio, but it’s essential to note that specific employment conditions may vary based on individual circumstances and employer policies.

To learn more about Ohio labor laws, you can access our guides on understanding your rights as an hourly employee in Ohio and discover how to run payroll in Ohio.

• Minimum Wage: Employees in Ohio have the right to receive the state minimum wage of $10.45 per hour. However, this minimum wage only applies to non-exempt salaried employees and employees of businesses that make over $385,000 in yearly sales. Lower earning businesses can pay employees the federal minimum wage of $7.25 per hour. Exempt salaried employees are entitled to a minimum annual compensation of $43,888 or $844 every week. 
• Overtime Pay: Eligible salaried employees are entitled to overtime pay at a rate of 1.5 times their regular hourly rate for time worked beyond 40 hours in a workweek. Non-exempt salaried government employees have the option of receiving compensatory time instead of overtime pay.
• Meal and Rest Breaks: Ohio labor laws do not require employers to provide meal or rest breaks for adult employees. However, breaks may be granted at the employer’s discretion. Further, minors are entitled to 30-minute breaks for every five hours worked.
• Family and Medical Leave: Eligible employees have the right to take unpaid leave for qualified medical and family reasons under the Family and Medical Leave Act (FMLA).
• Whistleblower Protections: Section 4113.52 of the Ohio Revised Code protects salaried employees from retaliation for reporting their employer’s illegal activities or violations of state and federal laws, including felonies, activities that pose hazards to public health, and solicitation of contributions from employees. 
• Workers’ Compensation: Injured salaried employees have the right to file for workers’ compensation to receive benefits for work-related injuries or illnesses. These benefits include compensation for lost wages, medical bills, and funeral costs. 
• Equal Pay: Salaried employees are entitled to equal pay for work that requires equal effort, skill, and responsibility. Employers in the state cannot base pay differentials on gender, race, color, religion, age, national origin, or ancestry. Rather, differences in compensation can only be based on merit, seniority, quality, and quantity of work.
• Anti-Discrimination Laws: The Ohio Fair Employment Practices Act protects all salaried employees from workplace discrimination based on the following protected characteristics: 
  • Race
  • Color
  • National origin
  • Religion
  • Gender (including pregnancy, childbirth, and related medical conditions),
  • Disability
  • Age (40 and older)
  • Citizenship status
  • Genetic information
  • Military status

Employment rights can vary depending on the industry, employer policies, and employment contracts. It’s important for salaried employees in Ohio to be aware of their specific rights and responsibilities, which may evolve over time due to changes in laws and regulations. Consulting with an employment attorney or the Ohio Department of Commerce can provide personalized guidance and ensure that you have accurate and up-to-date information regarding your rights as a salaried employee in Ohio.

Some salaried employees in Ohio are eligible for overtime pay. Ohio defers to the Fair Labor Standards Act (FLSA) on the determination of overtime eligibility. According to the FLSA, overtime pay is applicable to non-exempt salaried employees. These employees are typically blue-collar workers in the trades, clerical workers, and workers in other jobs that involve repetitive physical duties. 

Ohio overtime laws offer special overtime protections for some professions that would otherwise fall under the exempt category. These include professions whose employees endure long work hours, such as paralegals and tactical nurses. Paramedics, firefighters, and police officers are also eligible for overtime pay regardless of their basis of compensation. 

In comparison, exempt salaried employees are not eligible for overtime. Under the FLSA, salaried executive, administrative, professional, and outside sales employees who earn more than $684 a week are not eligible for overtime pay.

Yes, employers in Ohio are generally allowed to make various deductions from employees’ salaries, provided they comply with state and federal laws. Here is a list of some common deductions that employers in Ohio are allowed to make:

• Federal and State Taxes: Employers can withhold federal income tax, state income tax, and local income tax  as required by law. The state income tax in Ohio ranges from 2.765% to 3.99% based on an employee’s tax bracket.
• Voluntary Deductions: Employers can make deductions for voluntary contributions to retirement accounts, health insurance premiums, Health Savings Account (HSA) contributions, stock purchase plans, charity contributions, or any other legal deductions authorized by the employee.
• Union Initiation Fees: Employers can deduct union initiation fees if the employee has joined a union and agreed to the deduction.
• Court-Ordered Garnishments: Employers can make deductions to comply with court-ordered garnishments for purposes such as child support or alimony payments.
• Union Dues: Section 4117.03 of the Ohio Revised Code recognizes employees’ right to participate in labor unions. As such, employers can make deductions for union dues if the employee is a member of a union and has authorized the deduction.
• Uniforms and Equipment: Employers can deduct the cost of uniforms or equipment, tools and supplies, and drug and physical tests required for the job from an employee’s wage. However, salaried employees who earn minimum wage are exempted from these deductions.

It’s essential for employers in Ohio to comply with both federal and state laws when making deductions from employees’ salaries. Additionally, any deductions should not reduce an employee’s wage below the applicable minimum wage rate. Employers should also maintain accurate records of all deductions and obtain written consent from employees before making any deductions where required by law.

Yes. Some salaried employees in Ohio are eligible for breaks and different types of leave.

Salaried minor employees in Ohio are entitled to 30-minute breaks for every five hours worked. Besides these breaks for minors, Ohio break laws do not make any other provisions for breaks for salaried employees in the state. 

However, employers can choose to offer breaks to their employees. If this happens, employers cannot deduct exempt salaried employees’ wages for time spent on breaks. Further, salaried non-exempt employees should be compensated for breaks of up to 20 minutes since short breaks are considered compensable time. 

The Ohio Revised Code upholds the FLSA and FMLA guidelines on leave. Therefore, as per the Family Medical and Leave Act (FMLA), exempt salaried employees in the state are entitled to up to 12 weeks of unpaid leave for the birth, adoption, or placement of a foster child, healthcare, and caregiving to an immediate family member. Employees who are the primary caregivers of a service member with serious injury can take up to 26 weeks of unpaid leave in a year without losing their job. 

In addition to the federal leave, salaried employees in the state are entitled to a reasonable amount of time off to exercise civic duties, including voting and jury duty. In fact, any attempts by employers to prevent their employees from voting and serving on a jury are unlawful pursuant to the Ohio Revised Code. 

Other types of leave for which salaried employees are eligible according to Ohio leave laws include parental leave for new parents and leave for pregnant women with pregnancy-related disabilities. To qualify for parental leave in the state, an employee’s name must be on the child’s birth certificate. Further, full-time employees should be compensated for parental leave for up to six weeks.

Yes, Ohio state laws support and encourage flexible work arrangements. As per the Ohio Administrative Rule 3341-5-42, flexible work arrangements include flextime, alternate work locations, and telework. Flexible work arrangements that involve remote work and alternate work locations must meet the following requirements:

• If the flexible work arrangement involves allowing employees to work remotely, the employees must be present during all working hours. The law states explicitly that employees should not use flexible working schedules for childcare. Rather, employees under these arrangements should arrange for childcare.
• Second, employees must work from a worksite with adequate internet access and all necessary equipment and accessories. The employee will bear the cost of equipping the workspace.
• Third, the employee must ensure that their workspace is functional. The responsibility of safety also falls on the employee.

Exempt status in Ohio refers to an employee’s exemption from overtime laws, which determine the rate of overtime pay and compensatory time for working for more than 40 hours in one workweek. Here are the features of exempt status in the state:

• Exemption Categories: Exempt employees in Ohio fall into specific categories as defined by the Fair Labor Standards Act (FLSA). The primary categories include executive, administrative, professional, and certain outside sales employees.
• Salary Basis: Exempt employees in Ohio are typically paid on a salary basis rather than an hourly wage. They receive a predetermined salary that is not subject to reduction based on the quantity or quality of work performed.
• Minimum Salary Threshold: To qualify as an exempt employee in Ohio, individuals must meet a minimum salary threshold set by federal law. The current federal threshold is $844 per week ($43,888 annually). 
• Job Duties: Exempt employees typically perform specific job duties that align with their exemption category. These duties are outlined in the FLSA regulations and generally involve responsibilities like managing employees, exercising discretion and independent judgment, or performing specialized professional tasks.
• Overtime Exemption: Exempt employees are not eligible for overtime pay under federal and state law. This means they are not entitled to receive overtime compensation for hours worked beyond 40 in a workweek.
• Legal Protections: Exempt employees are entitled to certain legal protections, such as anti-discrimination and workplace safety rights. 

Please note that labor laws may change over time, so it’s essential to stay updated on the most current regulations to ensure compliance with Ohio’s specific regulations.

Overtime laws affect several aspects of employment, including overtime pay, job duties, leave, deductions, flexible working arrangements, and salary. Here are some implications of exempt status in Ohio:

• Overtime Pay: Exempt employees are not entitled to receive overtime pay for working more than 40 hours in a workweek. They are typically paid a fixed salary regardless of the number of hours worked.
• Job Duties: To qualify as exempt, employees must meet certain criteria regarding their job duties. The most common exemptions are the executive, administrative, professional, and sales employees’ exemptions. Employees must primarily perform specific types of work as defined by these exemptions.
• Leave: Exempt employees generally have specific leave entitlements under the FLSA and FMLA. Further, they may be eligible for other leave benefits as determined by company policies or employment contracts. 
• Deductions: Employers can only make deductions from the salaries of exempt employees under very specific circumstances, such as for full-day absences due to personal reasons other than sickness or disability. However, all deductions should comply with FLSA regulations and state labor laws.
• Salary: Exempt employees are typically paid a predetermined salary that remains consistent regardless of the number of hours worked. The salary must meet or exceed the minimum salary threshold of $844 per week or $43,888 annually as established by the FLSA

It’s crucial for salaried employees in Ohio to be aware of both federal and state labor laws and seek legal counsel or consult the Ohio Department of Commerce Bureau of Wage and Hour Administration to ensure that they are classified correctly and receiving the appropriate benefits based on their classification.

Please note that this table provides a general overview, but specific circumstances can vary based on job roles, industries, and employer policies. It’s advisable to consult legal counsel or the Ohio Department of Commerce’s Wage and Hour Bureau for more accurate guidance.

To determine whether you are an exempt employee, you must meet certain criteria related to your job duties and salary. Any employee who does not meet the criteria is non-exempt. Here is an outline of the tests used to determine an employee’s status in Ohio:

1. Salary Basis Test: Exempt employees must be paid a predetermined, fixed salary that is not subject to reduction based on the quantity or quality of work performed. The salary must meet or exceed the minimum salary threshold set by federal law. The current minimum salary threshold for exempt employees is $844 per week ($43,888 annually). Please note that these thresholds may change over time due to federal updates.
2. Salary Level Test: Exempt employees must earn a salary that meets or exceeds the minimum salary level set by federal regulations. The salary level is subject to change, so it’s important to check for updates from the U.S. Department of Labor or the Ohio Department of Commerce.
3. Duties Test: Exempt employees must primarily perform certain types of job duties, which are categorized into three primary exemptions: executive, administrative, and professional. There are also exemptions for some sales employees. The specific duties associated with each exemption are outlined by the FLSA and generally focus on the nature of the work, the level of responsibility, and the discretion exercised by the employee as follows:
   • Executive Exemption: To qualify for the executive exemption, the employee must primarily manage the enterprise or a recognized department or subdivision. Second, they must customarily and regularly direct the work of at least two or more other full-time employees. Finally, they must have the authority to hire or fire employees or their suggestions and recommendations regarding hiring, firing, advancement, promotion, or other status changes must carry significant weight.
   • Administrative Exemption: To qualify for the administrative exemption, the employee’s primary duty must involve office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers. Their primary duty must also include the exercise of discretion and independent judgment regarding significant matters.
   • Professional Exemption: The professional exemption applies to employees whose primary duty involves work requiring advanced knowledge in a field of science or learning that is customarily acquired by prolonged, specialized, intellectual instruction. They must perform work that requires the consistent exercise of discretion and judgment. Examples include doctors, lawyers, teachers, and certain creative professionals.
   • Outside Salespersons: Employees whose main duties are making sales or taking orders outside of their employer’s main workplace are exempt if they are paid on a salary or commission-based structure and do not spend more than 20% of their time doing work other than sales. 

It’s important to note that both federal and Ohio state laws may change, and your employer should regularly review and update their employment practices to ensure compliance with the latest regulations. Additionally, consulting with legal counsel or the Ohio Department of Commerce can provide specific guidance tailored to your situation.

As of 1 January 2023, the minimum wage for hourly employees in Ohio is $10.45 and $5.25 for employees who receive tips of at least $30 in a month. However, this minimum wage only applies to non-exempt employees of companies with annual gross revenue or receipts of $385,000 or more. Non-exempt employees of companies with lower annual revenues are entitled to the federal minimum wage of $7.25 per hour. 

Comparatively, the minimum salary requirements for salaried exempt employees are set by the FLSA. Currently, an exempt employee in Ohio must receive a weekly compensation of $844.

Salaried employees who are eligible for overtime receive 1.5 times their regular hourly wage for time worked above 40 hours in one workweek. Eligible salaried government employees can choose to receive 1.5 hours of compensatory time for every hour worked overtime for up to 240 hours within a 12-month period.

Employers in Ohio are allowed to make the following deductions from salaried employees’ pay:

1. Federal and State Taxes: Employers can withhold federal income tax, state income tax, and local income tax as required by law. The state income tax in Ohio ranges from 2.765% to 3.99% based on an employee’s tax bracket.
2. Voluntary Deductions: Employers can make deductions for voluntary contributions to retirement accounts, health insurance premiums, Health Savings Account (HSA) contributions, stock purchase plans, charity contributions, or any other legal deductions authorized by the employee.
3. Union Initiation Fees: Ohio is a right-to-work state pursuant to Section §4113.02 of the Ohio Revised Code. As such, employers can deduct union initiation fees if the employee has joined a union and agreed to the deduction. However, an employer cannot coerce an employee to join or terminate their membership in a labor union. 
4. Court-Ordered Deductions: Employers can make deductions to comply with court-ordered garnishments for purposes such as child support or alimony payments.
5. Union Dues: Section 4117.03 of the Ohio Revised Code recognizes employees’ right to participate in labor unions. As such, employers can make deductions for union dues if the employee is a member of a union and has authorized the deduction.
6. Uniforms and Equipment: Employers can deduct the cost of uniforms or equipment, tools and supplies, drug and physical tests required for the job. However, salaried employees who earn minimum wage are exempted from these deductions, which are only allowed if they do not reduce the employee’s wage below minimum wage.
7. Recovery of Damaged Property: Employers in Ohio can deduct the cost of damaged or stolen property destroyed or lost through an adult employee’s negligence. However, they cannot deduct the wages of minors for losses or damages resulting from negligence or incompetence.

Ohio laws offer the following protections and benefits to salaried employees:

• As a right-to-work state, Ohio state law protects salaried employees’ right to join and participate in the activities of a labor union.
• Ohio enacts laws governing employee compensation and benefits, encompassing wage disbursement, salary deductions, and parental leave for new parents.
• Ohio regulations protect employees from discrimination through equal pay guarantees for roles that require the same effort and skills. Further, employees who expose discrimination and other violations of labor laws are protected from retaliation.
• Employees in the state can take a reasonable amount of time to exercise their civic duties without fear of losing their jobs.
• Upon the termination of employment, employers in Ohio are bound by the state’s payday laws, which require them to pay employees within 15 days or on the next payday.

Labor or employment law breaches in Ohio can encompass issues such as wage and hour discrepancies, unsafe working conditions, or discrimination. You can report such violations by submitting reports to the relevant state offices or federal agencies. If you believe that you’ve been discriminated against at work, you can file a discrimination charge with the U.S. Equal Employment Opportunity Commission or Ohio Civil Rights Commission. If your employer violates wage and hour laws, you can take action by filing a complaint with the Ohio Department of Commerce.