Essential Info for Employers & Employees

Ohio’s labor laws evolve over time, blending state statutes and federal rules. In 2025, several new requirements — especially on pay stub transparency — make compliance more important than ever. This post walks you through the key rules, updates, and best practices in Ohio.

1. Minimum Wage & Tipped Wage Rules

  • 2025 Minimum Wage: As of January 1, 2025, Ohio’s minimum wage for non-tipped employees becomes $10.70 per hour.
  • Tipped Employees: The base (cash) wage for tipped workers is $5.35/hr, with the remainder to be made up via tips so total compensation meets or exceeds $10.70.
  • Employer Coverage Threshold: Ohio’s state minimum wage law applies to employers with gross annual receipts over $394,000. Less than that? Federal minimum wage may still apply.
  • No Local Minimums: Municipalities in Ohio generally cannot impose minimum wages higher than the state floor for private employers.

2. Overtime & Exempt vs Nonexempt

  • Overtime Rule: Nonexempt workers are entitled to 1.5× their regular rate for hours over 40 in a workweek under Ohio law aligned with FLSA.
  • Federal Exempt Tests: An employee is exempt only if they pass both the duties test and salary test under federal law; merely labeling someone “salaried” doesn’t guarantee exemption.
  • Proposed Federal Rule Blocked: A federal rule raising the exempt salary threshold (to about $1,128/week) was struck down; the current threshold remains in effect.

3. New 2025 Pay Stub Transparency Law

  • Effective Date: April 9, 2025
  • What It Requires: Employers must provide an itemizedpay stub or equivalent information each pay period. The pay stub must include:
    1. Employer name
    2. Employee name
    3. Employee address
    4. Gross wages
    5. Net wages
    6. Itemized deductions (with descriptions)
    7. For hourly employees: hours worked and hourly rate(s)
  • On Request Option: If the employer does not provide pay stubs routinely, employees can submit a written request. The employer must respond with a compliant pay stub within 10 days.

4. Final Pay & Wage Deductions

  • Final Pay Timing: The wages owed must be paid by the next regular payday, or within 15 days of separation, whichever is earlier.
  • Permissible Deductions: Deductions are allowed only if legally required (taxes, court orders) or authorized in writing by the employee. Deductions cannot reduce pay below the minimum wage.
  • Recordkeeping: Employers must keep payroll, time, and deduction records for at least 3 years, per law.

5. Breaks, Meal Periods & Minor Rules

  • No Mandated Breaks: Ohio law does not require adult employees to receive meal or rest breaks.
  • If Breaks Offered: Short breaks (5–20 minutes) generally must be paid; bona fide unpaid meals (≥30 minutes) may be allowed if the employee is fully relieved of duties.
  • Minors: Children under 16 have special protections: they must receive a 30-minute break if they work five or more hours.

6. Child Labor & Youth Employment

  • Hour & Time Restrictions: Minors must abide by limits on work hours, especially during school sessions, and cannot work late nights or past curfews depending on age.
  • Prohibited Work: Certain tasks are off limits for minors under federal and state law (hazardous occupations).
  • Permits: Employers must comply with work permit requirements where applicable and maintain proper records of minor employees’ hours and duties.

7. Enforcement, Remedies & Penalties

  • Ohio Department of Commerce – Wage & Hour Bureau: Handles state wage claim investigations and enforcement.
  • Legal Rights: If underpaid or denied required disclosures, employees can bring claims for unpaid wages, statutory penalties, attorney’s fees, and court costs.
  • Statute of Limitations: Under federal FLSA, claims are typically limited to two years (or three years for willful violations).

8. 2025 Compliance Checklist

  1. Pay all nonexempt employees at least $10.70/hr.
  2. Ensure tipped employees’ total (base + tips) meets $10.70.
  3. Audit exempt classifications — salary + duties must qualify.
  4. Implement pay stubs meeting new transparency requirements; respond within 10 days if requested.
  5. Pay final wages by the next regular payday or within 15 days.
  6. Avoid unauthorized deductions; get written authorization when needed.
  7. Provide pay statements that clearly show deductions, hours, and rates.
  8. Maintain payroll/time records for at least 3 years.
  9. Adhere to break practices if breaks are provided voluntarily.
  10. Abide by all rules regarding youth employees, permits, and prohibited tasks.

Ohio’s 2025 labor environment places a greater emphasis on transparency and pay stub obligations, while continuing to rely heavily on federal standards. By keeping policies current, training HR and payroll teams, and auditing classification and payroll practices, employers can reduce risk and ensure fair treatment for employees.

If you’d like, I can deliver a printable summary sheet or format this into a StubCreator-style web page ready for your site.