company paying employee

Not every employee has the same rights and benefits. There are laws both federally and at the state level that determine a person’s eligibility for rights such as overtime. To determine what benefits you get, first, you have to know your employment classification. Classifications include salary employees, private contractors (1099 employees), or hourly workers. Knowing the overtime laws of your job classification is essential in ensuring you are being paid for your work fairly.

Overtime Laws for Salary Employees in Ohio

To be a salaried employee in Ohio means that you have a fixed pay rate that is not determined by the amount of work completed per week. A salaried employee must be paid the full agreed-upon amount for any week work is performed. A common misconception is that all salaried employees are exempt from overtime pay. If a salaried employee is not classified as exempt, they are entitled to time and a half for hours exceeding 40 in a work week. Employees who are classified as “exempt” are not entitled to overtime. Employees can be considered exempt if they earn over $35,568 annually or $684 weekly and their duties don’t align with administrative, executive, professional, or computer-related roles.

Overtime Laws for Private Contractors in Ohio

To properly understand the overtime laws for private contractors in Ohio, it is important to understand the difference between private contractors and employees. There are a variety of factors that determine if a person is an employee or private contractor such as if the company controls the times the person works, if there are written benefits, and if the work is a key aspect of the business. Private contractors are contracted to do a specific job for a limited period and are not given instruction or training on how to complete their goal. When they are paid, taxes are not withheld by the employer. Since the private contractor is not supervised and instructed on how to complete their job, they are not entitled to overtime pay. Since these types of workers are not entitled to overtime, there is an incentive for employers to misclassify employees as 1099 contractors.

Overtime Laws for Hourly Workers in Ohio

An hourly worker in Ohio is defined as an employee who is compensated per hour of work completed. In Ohio, there is no limit to the number of hours an employee can work. However, if an hourly employee exceeds 40 hours worked per week, they are entitled to overtime pay. Overtime pay is equal to a time and a half of the employee’s hourly rate. For example, if an hourly employee’s pay was $10 per hour, their overtime pay would be $15 per hour. Even though overtime laws for hourly employees are more cut and dry, some challenges of hourly wages and no limit to the hours an employee can work can be fatigue, poorer quality of work, and irregular schedules.

What To Do If You Are Being Underpaid

If you are not receiving the correct pay for the overtime hours worked, you need to collect proof. Hourly employees who clock in and out, can be easier to show proof. However, a salaried employee who is not exempt should be keeping track of the hours they worked overtime. Employers who violate the state and federal laws of overtime pay can be penalized. You should contact an Ohio unpaid overtime attorney to discuss if you have a case.