Payment of Wages: Ohio

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

• The term wages is specifically defined in the Ohio wage payment law. See Definition of Wages.
• Ohio employers may pay employees in cash, or with checks drawn on banks convertible into cash on demand at full face value. Ohio law is silent as to whether private employers may pay employees by direct deposit or with payroll cards. See Wage Payment Methods.
• Employees working in Ohio must be paid at least semimonthly, but daily or weekly pay periods are also permitted. Longer periods are permitted if customary in the employer's type of business. Semimonthly paydays must occur by the first or fifteenth of each month for the prior month's wages. Penalties are imposed for noncompliance. See Pay Frequency.
• Employers are permitted to make certain types of deductions from employee's pay, and are prohibited from making other types of deductions. Serious civil and criminal penalties are imposed for noncompliance. See Permitted and Prohibited Wage Deductions.
• An employer that fails to pay a terminated employee within the required time period is liable for penalties. Special rules apply to payment of accrued vacation time. See Final Pay.
• An Ohio employer must pay all wages or personal earnings due to a deceased employee after the employee's death, provided certain requirements are met. Payment may only be made to specific individuals and in a certain order. See Deceased Employee Wages.
• Wages that are unclaimed by an employee after one year are presumed abandoned. All employers that operate in Ohio or that hold funds due to Ohio residents, except nonprofit hospitals and political subdivisions, are required to notify affected employees according to specific due diligence procedures and file an annual report of unclaimed wages. See Unclaimed Wages.
• Columbus has requirements pertaining to the payment of wages. See Local Requirements.