Ohio State Labor Laws for Business Owners

Ohio is located in the Midwest region of the United States. In 2023, the state had a population of approximately 11.8 million people and a gross domestic product (GDP) of $730 billion USD. Ohio's economy is diverse, with key sectors including manufacturing, healthcare, agriculture, and finance. The state is also home to a growing technology sector and a robust transportation industry. Ohio is considered moderately business-friendly, offering competitive tax rates and a balanced regulatory environment.

Minimum Wage Mandates

Ohio has its own state minimum wage law. As of January 1, 2026, the minimum wage is $11.00 per hour for non-tipped employees at businesses with annual gross receipts exceeding $405,000. This represents a 2.8% increase from the 2025 rate of $10.70 per hour, driven by the annual inflation adjustment mandated by the Constitutional Amendment (II-34a) passed by Ohio voters in November 2006.

Worker Category	2026 Hourly Rate
Non-tipped employees (large employers, gross receipts > $405,000)	$11.00
Tipped employees	$5.50
Small employers (gross receipts ≤ $405,000) & workers under 16	$7.25 (federal minimum)

There are no counties or cities in Ohio with a higher minimum wage than the state mandate.

Overtime Rules

Ohio follows federal overtime regulations. Non-exempt employees are required to be paid 1.5 times their regular hourly rate for any hours worked over 40 in a workweek. There are no daily overtime requirements. With the 2026 minimum wage of $11.00/hour, the minimum overtime rate is $16.50/hour.

Alternate Workweek Agreements: Ohio does not have specific provisions for alternate workweek agreements, but these arrangements are allowed as long as they comply with federal guidelines.

Exemptions: Certain employees, such as those in executive, administrative, or professional roles, may be exempt from overtime if they meet specific salary and duties tests.

Meal and Rest Breaks

Meal Breaks: Ohio law does not require employers to provide meal breaks for adult employees. However, it is common practice for employers to offer a 30-minute unpaid meal break for shifts longer than 6 hours.

Rest Breaks: Ohio does not mandate rest breaks for employees. Nonetheless, many employers provide short paid rest breaks, typically 10 minutes for every 4 hours worked.

Rules for Young Employees: Ohio law requires employers to provide a 30-minute uninterrupted meal break for employees under 18 who work more than 5 consecutive hours. Employers must also comply with federal child labor laws as outlined in the Fair Labor Standards Act (FLSA), which imposes additional restrictions on hours and working conditions for minors.

Paid Leaves and Time Off

Paid Sick Leave Laws: Ohio does not have a statewide paid sick leave mandate. Employers may offer paid sick leave, but it is not required by law.

Accrual and Usage of Sick Leave: In the absence of a state mandate, sick leave accrual and usage policies are determined by the employer.

Paid Time Off (PTO) Laws: Ohio does not require employers to provide paid time off (PTO) for vacations or personal time. However, employers who offer PTO must adhere to their internal policies and any relevant employment contracts.

Other Leave Laws:

• Jury Duty Leave: Employers must provide unpaid time off for employees serving on jury duty.
• Parental Leave: Ohio follows the federal Family and Medical Leave Act (FMLA), providing eligible employees up to 12 weeks of unpaid leave for the birth or adoption of a child, or to care for a seriously ill family member.
• Bereavement Leave: Ohio law does not require bereavement leave, though many employers offer it voluntarily.
• Voting Leave: Ohio law requires employers to provide reasonable time off for employees to vote. Employers are not required to pay employees for time spent voting.

FMLA Eligibility: Employees who have worked for a covered employer for at least 12 months and have worked at least 1,250 hours in the previous year are eligible for FMLA leave.

2026 Public Holidays in Ohio

Holiday	Date	Day
New Year's Day	January 1	Thursday
Martin Luther King Jr. Day	January 19	Monday
Presidents' Day	February 16	Monday
Memorial Day	May 25	Monday
Juneteenth	June 19	Friday
Independence Day	July 4 (observed July 3)	Saturday (Friday)
Labor Day	September 7	Monday
Columbus Day	October 12	Monday
Veterans Day	November 11	Wednesday
Thanksgiving Day	November 26	Thursday
Christmas Day	December 25	Friday

Employer Tax Obligations

Ohio employers should be aware of the following payroll tax rates and contribution requirements for 2026:

Tax / Contribution	Rate	Taxable Wage Base	Notes
State Unemployment Insurance (SUI)	0.55%–10.25%	$9,000	Rate depends on employer's experience rating
SUI Technology & Customer Service Fee	0.15%	$9,000	New surcharge for 2026–2027 to modernize the unemployment system
New Employer SUI Rate	2.7%	$9,000	Standard new employer rate

State Income Tax: Beginning in 2026, Ohio adopted a flat income tax rate of 2.75% on taxable income exceeding $26,050. Income at or below $26,050 is not subject to state income tax. This is a significant simplification from the prior progressive tax system. Note that the business income tax rate remains at 3.0%, and individuals with taxable income over $500,000 can no longer claim personal, spousal, or dependent exemptions.

Exempt vs. Non-Exempt Classification

Exempt Employees:

• Salary Basis: Exempt employees must be paid on a salary basis.
• Salary Level: The federal minimum salary threshold for exempt employees is $684 per week ($35,568 per year). Ohio follows the federal FLSA standard.
• Duties Test: Exempt employees must perform executive, administrative, or professional duties to qualify as exempt. Ohio follows federal guidelines for determining exempt status.

Non-Exempt Employees:

• Hourly Pay Rules: Non-exempt employees must be paid at least the state or federal minimum wage, whichever is higher.
• Overtime Wage Rules: Non-exempt employees are entitled to overtime pay at 1.5 times their regular rate for all hours worked over 40 in a workweek.

Equal Pay Act

The federal Equal Pay Act mandates equal pay for men and women performing substantially similar work. Ohio does not have a state-specific equal pay law but follows labor laws created by the federal government to prevent gender-based wage discrimination.

Employers must also comply with Title VII of the Civil Rights Act of 1964, which prohibits discrimination in employment based on race, color, religion, sex, or national origin.

New and Notable Laws for 2025–2026

• Ohio Mini-WARN Act (effective September 30, 2025): Ohio enacted its own provisions under Section 4113.31, requiring certain employers to give advance notice of plant closings and mass layoffs, supplementing the federal WARN Act.
• Flat Income Tax (effective January 1, 2026): Ohio transitioned from a progressive income tax system to a flat 2.75% rate on income above $26,050, reducing the prior top rate of 3.5%.
• SUI Technology Fee (effective January 1, 2026): A 0.15% surcharge was added to employer quarterly unemployment insurance tax rates to fund modernization of the state's unemployment benefit system, running through December 2027.

Rules for Hiring and Firing Employees in Ohio

At-Will Employment: Ohio is an at-will employment state, meaning that either the employer or the employee can terminate the employment relationship at any time for any lawful reason.

Anti-Discrimination Laws: Ohio's Civil Rights Act prohibits discrimination in hiring, firing, and other employment decisions based on race, religion, sex, disability, age, and other protected characteristics.

Equal Employment Opportunity (EEO) Act: Ohio follows federal and state EEO regulations, ensuring that employers provide fair and equitable treatment to all employees.

Background Verification Rules: Employers in Ohio can conduct background checks but must comply with the Fair Credit Reporting Act (FCRA) and other relevant federal and state laws concerning the use of criminal or credit history in hiring.

Work Eligibility Verification Rules: Employers must verify that employees are authorized to work in the United States by completing the federal I-9 form.

Final Paychecks: Ohio law requires employers to issue final paychecks on the next scheduled payday after the employee is terminated or leaves the company.

Unemployment Compensation Rules: Employees who are terminated without cause may be eligible for unemployment benefits if they meet the state's eligibility requirements. For 2026, the maximum weekly unemployment benefit is $905 (up from $875 in 2025).

Compliance with WARN Act: Ohio employers must comply with both the federal WARN Act and the new Ohio Mini-WARN Act (effective September 30, 2025), which requires advance notice before large-scale layoffs or plant closures.