Capital City
Columbus
Timezone
EST
(
GMT-5
)
Paid Leave
None
Income Tax
2.77% - 3.99%
Employer Tax
0.4% - 10.1%
Capital City
Columbus
Timezone
EST
(
GMT-5
)
Paid Leave
None
Income Tax
2.77% - 3.99%
Employer Tax
0.4% - 10.1%
Ohio is a "right-to-work" state, meaning employees are not required to join a union or pay union dues as a condition of employment.
The state’s minimum wage for non-tipped employees is $10.10 per hour (2024), with annual adjustments based on inflation.
Manufacturing and healthcare are among Ohio's largest employment sectors, reflecting the state’s diverse and growing economy.
In Ohio, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race. Here are the key things you need to know about hiring in Ohio.
Employers need an EIN for federal tax purposes and must register for state payroll taxes with the Ohio Department of Taxation.
Ohio requires overtime pay for hours over 40/week but imposes no limits on adult working hours.
Full-time is typically 35-40 hours/week, defined by the employer.
No state-mandated probation period; it's up to the employer's policy.
As of January 1, 2024, Ohio's minimum wage is $10.45 per hour for non-tipped employees and $5.25 per hour for tipped employees. This rate applies to businesses with annual gross receipts exceeding $385,000. For smaller businesses and employees under 16, the minimum wage aligns with the federal rate of $7.25 per hour.
Ohio law prohibits employment discrimination based on race, religion, sex, military status, national origin, disability, age, or ancestry. Unlawful practices include discriminatory hiring, firing, promotion, and other employment-related decisions.
Ohio does not mandate a specific payroll frequency. Common payroll cycles include weekly, bi-weekly, or semi-monthly, as determined by employer policy. Employers must adhere to consistent pay schedules.
Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Ohio. Understanding the tax obligations for both employers and employees is crucial when operating in Ohio's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Ohio. Note that employees may be liable for additional local taxes in certain cities and jurisdictions.
Public employees contribute to state systems with retirement eligibility based on age and service. Private employers are not required to offer pension plans but must comply with ERISA if they do.
Employers must comply with federal and state regulations for mandatory and optional benefits.
It should be noted that in the US, typical benefits such as vacation time, maternity leave, health insurance, etc. aren't legally required. However, it’s standard practice to offer them. As part of our global employment services, Playroll can create a globally compliant and competitive compensation package that can help you attract and retain top talent in the US.
Competitive benefits are essential for attracting and retaining top talent in Ohio. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Ohio packages include:
Health insurance is not mandated by state law. Under the ACA, employers with 50 or more full-time equivalent employees must offer health insurance meeting essential coverage standards.
Part-time employees are not legally entitled to benefits. Eligibility depends on the employer's policies.
There is no legal requirement to offer retirement plans like 401(k)s. Employers who provide them must comply with the Employee Retirement Income Security Act.
In Ohio, employers are not legally required to provide paid or unpaid vacation leave to their employees. The decision to offer vacation benefits is at the discretion of the employer. If an employer chooses to provide vacation leave, they must adhere to the terms outlined in their established policy or employment contract. This includes any provisions regarding the accrual, use, and payout of vacation time?
Below are the mandatory leave entitlements for full-time employees in Ohio.
Ohio does not mandate that employers provide paid time off. The provision of PTO, including vacation days, is at the discretion of the employer and should be outlined in company policies or employment contracts.
In Ohio, there is no state-mandated maternity leave. Employees rely on the federal Family and Medical Leave Act (FMLA), which provides unpaid, job-protected leave for eligible employees to care for a newborn, adopted child, or newly placed foster child. If FMLA doesn’t apply, any maternity leave would depend on the employer’s policies. Some companies may offer paid maternity leave voluntarily as a benefit.
In Ohio, there is no state-mandated paternity leave. Eligible employees may qualify for unpaid, job-protected leave under the federal Family and Medical Leave Act (FMLA) to care for a newborn, adopted child, or newly placed foster child. If FMLA doesn’t apply, any paternity leave would depend on the employer’s specific policies, as Ohio law does not provide additional leave requirements for paternity.
Ohio does not require employers to provide paid or unpaid sick leave. Employers may offer sick leave at their discretion, and any such policies should be clearly stated in employment agreements or company handbooks.
Employees who are members of the Ohio organized militia or National Guard are entitled to unpaid leave for military service or training. Upon return, they have the right to reinstatement to their previous position or a similar one, in accordance with the Uniformed Services Employment and Reemployment Rights Act (USERRA).
Employers must allow employees to take unpaid leave for jury duty. They cannot discharge, threaten, or penalize employees for serving as jurors, provided the employee gives reasonable notice prior to the commencement of jury service.
Employers are required to provide employees with a reasonable amount of time off to vote. Employers cannot discharge or threaten to discharge an employee for taking time off to vote.
Ohio law does not require employers to provide bereavement leave. Any such leave is at the discretion of the employer and should be detailed in company policies.
When it comes to terminating employment in Ohio, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.
Employment is at-will, meaning employers can terminate employment without cause unless it violates anti-discrimination laws or contractual agreements. Dismissal cannot occur for discriminatory reasons, retaliation, or whistleblowing.
There is no statutory requirement for a notice period before termination, though contracts or company policies may specify one.
Severance pay is not legally required. Employers may provide it based on company policy or contractual agreements.
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As of January 1, 2024, Ohio’s minimum wage rates are:
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