Nobody ever said running a business was easy. As an employer, you have many things to handle, and compliance is just one of them.
In addition to U.S. Federal regulations, each state has its own share of employment-related laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements, and offering guidance to help you keep up.
Bear in mind that this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.
Payroll Tax Accounts
Because Justworks reports state unemployment taxes on behalf of customers who utilize Justworks’ PEO services, Justworks may need to collect account information such as your account number and current rate. You can read more about it here: State Unemployment Insurance.
Ohio Bureau of Workers Compensation (Ohio BWC)
PLEASE NOTE: OH BWC is entirely separate from OH SUI.
Ohio is a Monopolistic State for Workers' Compensation Insurance, which only allows workers comp coverage through the Bureau of Workers Compensation (BWC). Therefore, customers manage their workers’ comp policies independently of Justworks. Insurance through private insurance companies is not allowed.
Ohio requires all businesses operating in Ohio to have Workers’ Comp coverage for their OH employees.
For more information about Ohio BWC, check out this help center article.
Recruiting & Hiring Practices
Salary History Ban
[Cincinnati]
Cincinnati employers with 15 or more employees are prohibited from inquiring about or screening for a job applicant’s pay history. Employers must also provide a job applicant, upon a reasonable request, with the pay range of a position following a conditional offer of employment.
[Columbus]
Employers in the City of Columbus, Ohio with 15 or more employees are restricted from inquiring about an applicant’s previous salary history or current wages. Employers are also prohibited from inquiring about a candidate’s total rewards package, such as medical insurance or other benefits provided.
[Toledo]
Toledo employers with 15 or more employees are prohibited from inquiring about or screening for a job applicant’s pay history. Employers must also provide a job applicant, upon a reasonable request, with the pay range of a position following a conditional offer of employment.
Mineral*: Cincinnati, Ohio, Pay Equity and Transparency
Mineral*: Columbus, Ohio, Pay Equity and Transparency
Mineral*: Toledo, Ohio, Pay Equity and Transparency
Independent Contractors
When deciding whether to classify workers as employees or independent contractors, there are a few things your business should consider, including the varying tests that apply under different federal and state employment laws, and the potential penalties and other liabilities for misclassifying employees as independent contractors.
You can read our general Help Center article on contractors, and view information on how to determine if someone is an independent contractor or employee in Ohio in the relevant section linked below.
Ohio Bureau of Workers’ Compensation: Contract Labor/1099s
Mineral*: Ohio Independent Contractors
Pay Requirements
Minimum Wage & Overtime
Ohio’s minimum wage requirement is higher than the federal minimum wage. Further information about minimum wage, overtime, and other related rules and regulations in Ohio can be found at the links below.
Ohio Department of Commerce: 2024 Minimum Wage
Mineral*: Ohio Minimum Wage and Overtime
Pay Parity
Ohio employers are prohibited from discriminating against employees on the basis of race, color, religion, sex, age, national origin, and ancestry and are required to offer equal pay for equal work in roles with similar working conditions, skill, and effort. Exceptions to this include:
- Pay based on seniority or merit system
- A system that measures earnings by quantity or quality of production
- Pay differential based on a factor other than race, color, religion sex, age, national origin, and ancestry
Ohio Legislative Service Commission: Prohibiting discrimination in payment of wages
Mineral*: Ohio Pay Equity and Transparency
Separation
Final Pay & Document Requirements
Ohio law requires that employees be paid their final wages by the next regularly scheduled payday for the pay period worked. This applies to both voluntary and involuntary separations, with or without notice.
Whether an employer must pay for unused time depends upon the terms of the vacation and/or resignation policy. An agreement to give benefits or wage supplements, like vacation, can specify that employees lose accrued benefits under certain conditions. To be valid, the employer must have told employees, in writing, of the conditions that nullify the benefit. If an employee has earned vacation time and the employer has no written forfeit policy, then the employer must pay the employee for the accrued vacation.
Mineral*: Ohio Separation
Business Closings and Layoffs
The Federal Worker Adjustment and Retraining Notification (WARN) Act imposes certain notices and other obligations on covered businesses before conducting large-scale business closures, layoffs, or relocations.
In addition to federal law, if a covered business is preparing to undergo large-scale layoffs or closures, Ohio requires those employers to provide their employees with 60 days' notice of their intentions. For more information, visit the links below.
U.S. Department of Labor: Worker Adjustment and Retraining Notification (WARN) Act Advisor
Mineral*: Ohio Layoffs
Notes
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Disclaimer
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.