Changes Coming to Ohio’s Overtime Laws What Employers and Employees Need to Know

By: Jacob Davis, Esq.

A new Ohio labor law governing overtime pay will take effect on July 6, 2022. Ohio’s overtime laws have generally mirrored portions of the federal Fair Labor Standards Act (FLSA), which requires employees be paid 1.5 times their regular hourly rate for any hours worked in excess of 40 hours in a week. As an example, an hourly employee that makes $10/hour and works 50 hours in a week would earn $550 rather than $500. There has routinely been litigation involving what counts as time worked, and a new law looks to address that issue.

Senate Bill 47 – Wage and Overtime Laws

Ohio recently enacted Senate Bill 47, which generally excludes overtime pay for employees commuting to and from work, and other extraneous work, not connected to the principal activity. An employer is now not required to pay overtime compensation for any time that the employee spends performing any of these activities:

• Walking, riding, or traveling to and from the actual place of performance of the principal activity or activities that the employee is employed to perform;

• Activities that are preliminary to or postliminary to the principal activity of activities; or

• Activities requiring insubstantial or insignificant periods of time (i.e. de minimis) beyond the employee’s scheduled working hours.

The law applies to activities that occur either prior to the time on any workday, or subsequent to the time on any particular workday, at which the employee ceases such principal activity. Although the law strengthens protections for employers, there is a carve out still requiring employers to pay overtime wages in the following circumstances:

• The employee performs the activity pursuant to an express provision of a written or unwritten contract in effect at the time of performance;

• The employee performs the activity pursuant to a custom or practice applicable to the activity, in effect at the time of the performance.

• The employee performs the activity at the specific direction of the employer; or the employee performs the activity during the regular workday or during prescribed hours.

Class Actions

Senate Bill 47 also adds a provision regarding overtime class action lawsuits. Starting July 6, 2022, class action plaintiffs will have to specifically “opt-in” rather than “opt-out” by giving express written consent to become a party plaintiff. That consent must also be filed with the court where the action is brought. This provision will make it more difficult for a class or collective of plaintiffs to bring an action enforcing their rights against employers who have a pattern or practice of failing to pay overtime to all or most of its employees.

The Next Step for Employers

Employers are encouraged to conduct reviews of their policies and procedures to ensure they are current with Ohio law. It is best to work with your attorney to review your pay practices, exempt/non-exempt positions, job descriptions, and employee/independent contractor classifications. Contact Jacob Davis at (937) 620-2137 or book a FREE consultation if you have questions regarding wage-hour compliance in Ohio or Tennessee.