Hiring Employees in Ohio

Classifying Your Workers Correctly

Your company must decide whether each Ohio hire is an employee or an independent contractor using IRS common law tests and Ohio guidance. You should look at behavioral control, financial control, and the overall relationship to determine if you direct how, when, and where the work is done.

Ohio follows federal rules but can audit misclassification for unpaid overtime, minimum wage, unemployment, and workers’ compensation premiums. Misclassifying workers can expose you to back pay, taxes, penalties, interest, and liability under federal and state law, so review the IRS 20‑factor test and resources like Playroll’s employee misclassification guide at https://www.playroll.com/blog/employee-misclassification-guide.

Verify Employee Work Eligibility

For every Ohio employee you hire, you must complete federal Form I‑9 within 3 business days of the start date to verify identity and work authorization. You must examine original acceptable documents from List A, or a combination of List B and List C, and record the details on the form.

Ohio does not have a universal E‑Verify mandate, but certain public employers and contractors may be required to use E‑Verify under contract terms. You must retain I‑9s for at least 3 years after the hire date or 1 year after termination, whichever is later, and store them separately from general personnel files so you can respond quickly to audits.

Create an Employee Onboarding Process

When you onboard an employee in Ohio, you should issue a written offer letter outlining pay rate, pay schedule, exempt or nonexempt status, and key policies. You will need to collect federal Form W‑4, Ohio IT 4 for state withholding, any local tax forms, direct deposit authorization if used, and signed acknowledgments for your handbook and required notices.

Ohio employers must report all new hires to the Ohio New Hire Reporting Center within 20 days and provide information about workers’ compensation coverage and unemployment benefits. Building a standardized onboarding checklist helps you keep costs visible, forecast total employment spend, and avoid missed compliance steps as you scale hiring.

Pay Frequency & Methods

Ohio law requires you to pay employees at least semi‑monthly, and no later than 15 days after the end of the pay period unless you have a different written agreement that still complies with state rules. Final wages must be paid by the next regular payday, and failure to pay on time can lead to claims for back wages, liquidated damages, and potential civil penalties.

Payment Methods (How You Can Pay)

You can choose from several payment methods in Ohio, but you must always ensure employees receive full wages without unlawful deductions and a clear wage statement each pay period.

• Payroll Check: You may pay by check as long as employees can cash it at full face value without fees or unreasonable delay.
• Cash: You can pay wages in cash, but you must keep accurate records and give employees a written statement of hours, rates, and deductions each payday.
• Direct Deposit (EFT): You may use direct deposit, and you should obtain written consent and allow employees to choose the financial institution where wages are deposited.
• Paycards: You can offer payroll cards if employees have fee‑free access to full wages at least once per pay period and receive clear disclosures of any card fees.
• Outsourced Payroll: You may outsource payroll to a provider, but your company remains responsible for ensuring Ohio wage, tax, and recordkeeping rules are followed.

When you hire in Ohio, you must withhold and remit federal and state payroll taxes, plus any applicable local income taxes. Your company also pays employer contributions for unemployment insurance and workers’ compensation through the state fund.

Employer Tax Contributions

Before running payroll, you must register with the Ohio Department of Taxation for state income tax withholding and with the Ohio Department of Job and Family Services for unemployment insurance. You will also need to obtain workers’ compensation coverage through the Ohio Bureau of Workers’ Compensation and file returns and payments on the required schedules.

Employee Payroll Tax Contributions

Your payroll system must withhold federal income tax, Social Security and Medicare, Ohio state income tax, and any applicable municipal or school district income taxes from employee wages. You must remit these withholdings on time and provide employees with Form W‑2 after year‑end.

Minimum Wage in Ohio

For 2024, Ohio’s minimum wage is $10.45 per hour for non‑tipped employees of businesses with annual gross receipts of $385,000 or more, and $5.25 per hour for tipped employees, provided tips make up the difference. Smaller employers follow the federal minimum wage, so you must confirm your company’s annual gross receipts and adjust pay rates accordingly.

Working Hours in Ohio

Ohio does not set a daily maximum for adult working hours, but you must comply with federal Fair Labor Standards Act rules on recordkeeping and overtime. Minors face stricter limits on daily and weekly hours, night work, and required rest breaks, so you should verify youth employment rules before scheduling anyone under 18.

Overtime in Ohio

Ohio generally follows federal overtime law, requiring you to pay at least 1.5 times the regular rate for all hours worked over 40 in a workweek for nonexempt employees. To classify someone as exempt from overtime, you must meet federal salary thresholds and duties tests, and you should document your exemption decisions in writing.

Ohio does not mandate most private‑sector fringe benefits, but offering health insurance, retirement plans, and paid leave can make your company more competitive. If you average 50 or more full‑time employees in the U.S., the Affordable Care Act requires you to offer affordable, minimum‑value health coverage or face potential penalties.

Mandatory Leave Policies in Ohio

Paid Time Off in Ohio

Ohio law does not require you to offer paid vacation or general PTO, but once you adopt a policy, you must follow its terms consistently. You should clearly state how PTO accrues, whether unused time carries over, and what happens to balances at termination, and you should apply the policy uniformly to avoid discrimination claims.

Some Ohio employers combine vacation, sick, and personal days into a single PTO bank to simplify administration. Whatever structure you choose, make sure your payroll system tracks accruals accurately and that managers understand approval and blackout rules.

Maternity & Paternity Leave in Ohio

Ohio does not have a separate paid parental leave program, so most maternity and paternity leave is provided through federal FMLA, employer policies, or short‑term disability plans. If your company has 50 or more employees within 75 miles and an employee meets FMLA eligibility, you must provide up to 12 weeks of unpaid, job‑protected leave for birth, adoption, or foster placement.

Under federal and Ohio anti‑discrimination laws, you must treat pregnancy‑related conditions like any other temporary disability and may need to provide reasonable accommodations, such as modified duties or schedule changes. Many employers enhance retention by offering paid parental leave or wage replacement through disability insurance, even though it is not mandated.

Sick Leave in Ohio

Ohio does not require private employers to provide paid sick leave, but you must honor any sick leave benefits promised in contracts or policies. If you offer sick leave, define eligibility, accrual rates, documentation requirements, and whether time can be used for family members’ illnesses.

For larger employers covered by FMLA, qualifying serious health conditions may trigger job‑protected unpaid leave in addition to any paid sick time you provide. You should also ensure your sick leave practices comply with disability and anti‑retaliation laws when employees request time off for medical reasons.

Military Leave in Ohio

Ohio employers must comply with the federal Uniformed Services Employment and Reemployment Rights Act (USERRA), which provides job‑protected leave and reemployment rights for employees performing covered military service. Ohio law also offers protections for members of the Ohio National Guard and reserve components, including leave for training and emergency duty.

You are not generally required to pay employees during military leave, but you must allow them to use accrued vacation or PTO if they choose. When employees return from service within the required timeframes, you must reinstate them to the same or an equivalent position with preserved benefits and seniority.

Jury Duty in Ohio

Your company must allow employees time off to serve on a jury in Ohio and may not discipline or threaten them for complying with a summons. State law does not require you to pay for this time, but you cannot require employees to use vacation or sick leave to cover jury service unless your policy clearly states so and complies with law.

You may ask employees to provide a copy of the jury summons and proof of service for scheduling and payroll purposes. Many employers offset the financial impact by paying regular wages for some or all days of jury duty, especially for exempt staff.

Voting Leave in Ohio

Ohio law protects employees from being fired or threatened for taking a reasonable amount of time to vote, especially when work schedules would otherwise prevent them from reaching the polls. You are not generally required to pay hourly employees for voting time, but you should avoid scheduling practices that effectively deny them the opportunity to vote.

Ohio also requires employers to allow unpaid leave for employees who serve as election officials on Election Day. You should update your attendance and time‑off policies to reflect these rights and train supervisors not to discourage voting or election service.

Bereavement Leave in Ohio

Ohio does not mandate bereavement leave for private‑sector employees, so whether time off is paid or unpaid depends on your internal policy. Many employers provide 1–5 days of bereavement leave depending on the relationship to the deceased to support employees during a loss.

To avoid inconsistent treatment, you should define eligibility, duration, and documentation expectations in your handbook. Clear guidelines help managers respond compassionately while maintaining fairness and predictable staffing.

Termination Process

Ohio is an at‑will employment state, so you or the employee may end the relationship at any time for any lawful reason, but you should still follow a documented process. Maintain records of performance issues, apply your policies consistently, and provide a final wage statement showing all hours, pay, and deductions.

Notice Period

Ohio law does not require individual notice before termination, but larger employers may have federal WARN Act obligations when conducting mass layoffs or plant closings. You should also check employment contracts or collective bargaining agreements, which may require specific notice or progressive discipline steps.

Severance

Severance pay is not required under Ohio law, but you may choose to offer it to reduce litigation risk or support departing employees. If you provide severance in exchange for a release of claims, work with counsel to ensure the agreement meets federal and state requirements, especially for older workers.