Salaried employees in Ohio are generally subject to the Fair Labor Standards Act (FLSA), a federal law establishing standards for minimum wage, overtime pay, recordkeeping, and child labor. The FLSA dictates that eligible employees must receive overtime pay at a rate of not less than one and one-half times their regular rate of pay for all hours worked over 40 in a workweek. Exemptions to this rule exist for certain executive, administrative, and professional employees, as well as outside sales employees. Proper classification of employees as exempt or non-exempt is critical for legal compliance. For example, a misclassified employee performing non-exempt duties could be entitled to back wages for unpaid overtime.
Accurate application of wage and hour regulations offers significant advantages for both employers and employees. Compliance safeguards businesses from potential legal action and fosters a positive work environment built on fair compensation practices. For employees, it ensures they receive the rightful compensation for their labor, contributing to financial stability and a sense of value. Historically, these regulations emerged from labor movements seeking to address exploitative working conditions and ensure fair treatment for all workers.