How Is Overtime Pay Calculated for Non-Exempt Ohio Workers?
In Ohio, overtime pay is required for non-exempt employees who work over 40 hours in a workweek. Overtime pay is calculated as one and a half times the employee’s regular rate of pay. This article will discuss how overtime is calculated in Ohio and what factors are considered in determining the employee’s regular rate of pay.
How is My Regular Rate of Pay Calculated?
The regular rate of pay is the hourly rate an employee is paid for their regular workweek. To determine the regular rate of pay, all compensation the employee receives during the workweek must be divided by the total number of hours worked. Compensation includes not only the employee’s base hourly wage but also any bonuses, commissions, and other forms of payment. The regular rate of pay may vary from week to week, depending on the employee’s compensation.
For example, let’s say an employee earns a base hourly wage of $15 per hour and receives a $100 bonus for the week. If the employee worked 45 hours during the week, their regular rate of pay would be $17.22 per hour. This is calculated as follows:
- Begin by calculating the total regular (base wage) compensation for the week
- Base hourly wage = $15 per hour
- Weekly Bonus = $100
- Total Regular compensation = [$15/ hr X 45 hours ] + $100 bonus = $775 Total Regular Compensation for week
- Calculate regular rate of pay by dividing total regular compensation by total hours worked for the week
- $775 ÷ 45 hours worked = $17.22 per hour = regular rate of pay for that week.
How Should My Overtime Pay Be Calculated?
Once the regular rate of pay has been determined, overtime pay can be calculated. Overtime pay is calculated as one-and-a-half times the employee’s regular rate of pay for all hours worked over 40 in a workweek.
Returning to our previous example in which an employee’s regular rate of pay for the week is $17.22, but now let’s assume the employee worked 50 hours. That employee would be entitled to overtime pay for the 10 hours worked over 40. Overtime pay would be calculated as follows:
- Begin by calculating the employee’s hourly rate of pay for overtime.
- Regular rate of pay = $17.22 per hour
- Overtime pay rate = 1.5 x $17.22 = $25.83 per hour
- Calculate total overtime pay by multiplying total overtime hours worked by the overtime pay rate.
- Overtime hours worked = 10 hours
- Overtime pay rate = $25.83 per hour
- 10 hours X $25.83 per hour = $258.30 = total overtime pay
- Total Weekly Compensation for this Week combines total regular compensation + total overtime pay.
Are there Any Exceptions to Overtime Pay in Ohio?
There are some exceptions to the requirement for overtime pay in Ohio. Some employees are exempt from overtime pay because of their job duties or the type of work they perform. These exemptions include:
- Executive, administrative, or professional employees who are paid on a salary basis and meet certain job duties tests.
- Outside salespeople who work away from their employer’s place of business and whose primary duty is making sales.
- Agricultural employees who are employed on a small farm and who work on the farm for fewer than 500 days in any calendar year.
- Certain computer professionals who are paid on a salary basis and meet certain job duties tests.
What Can I Do If My Employer Incorrectly Classifies Me As “Exempt” and I Believe They Owe My Overtime Pay?
Employers are responsible for determining whether their employees meet any of these overtime exemption standards, which also means that sometimes, their determinations of exempt status are improper (whether deliberately or not). If an employee believes they are entitled to overtime pay, despite being classified as “Exempt”, they have the option to file a Wage Complaint with the Ohio Department of Commerce, Bureau of Wage & Hour Administration. There is no cost to file this complaint and there are two ways to file:
- Complaints can be filed online via the Bureau’s website, or
- They can be filed via hardcopy forms, which must be mailed to Ohio’s Division of Industrial Compliance, and which must be accompanied by a notarized statement from the employee describing why they believe they should be receiving overtime wages, along with copies of timesheets, timecards, and paystubs for the pay periods in question. Please note, a complaint is likely to be rejected if it does not contain complete and sufficient information, or if the Bureau concludes your exemption is valid.
In addition to filing a complaint through the Bureau of Wage & Hour Administration, employees also have the option of pursuing their complaint privately. Private pursuit of a wage complaint allows greater flexibility for how the employee wants to address their complaint, which can also lead to a more expeditious resolution. Typically, there are two ways to handle a complaint privately. can choose to directly engage with their employer to resolve the complaint, omaay choose to hire an attorney to advocate for them. Regardless, an employee can only choose one avenue at a time to pursue their claim.
Overtime pay is an important right for non-exempt employees who work over 40 hours in a workweek in Ohio. It is calculated as one and a half times the employee’s regular rate of pay, which includes all compensation received during the workweek. Employers must ensure that their employees are properly classified as exempt or non-exempt from overtime pay and that they are paid the correct amount for any overtime worked.
If you believe you are entitled to overtime pay but you are not receiving it, you should consider consulting with an experienced Ohio Wage and Hour attorney. The Columbus-based minimum wage attorneys at the law firm of Brian G. Miller CO., L.P.A. will be happy to speak to you today.