Ensuring compliance with both federal and state labor laws is a crucial responsibility for employers, HR professionals, and hiring managers. One of the most critical aspects of employment law is properly classifying workers as exempt vs non-exempt Ohio. This classification directly impacts how employees are paid, their eligibility for overtime, and the benefits they may receive.

In this comprehensive guide, we break down everything you need to know about exempt employees Ohio 2025, including the latest salary thresholds, exempt job duty requirements, and compliance best practices.

Understanding Exempt Employees in Ohio

An exempt employee is one who is exempt from overtime pay requirements under the Fair Labor Standards Act (FLSA) and Ohio Exempt Employee Laws. To qualify as exempt, employees generally must meet specific tests regarding their salary level, salary basis, and job duties.

In Ohio, like in most states, employers primarily follow the federal FLSA guidelines to determine exemption status.

Key Criteria for Exempt Status

1. Salary Level: In accordance wih the Ohio salary laws, the Department of Labor in the United States has raised the minimum salary threshold for exempt employees to $1,128 per week (equivalent to $58,656 annually), effective July 1, 2025.
    
2. Salary Basis: Employees must be paid a predetermined and fixed salary that is not subject to reduction based on the quality or quantity of their work.
    
3. Job Duties: Employees must primarily perform exempt job duties as defined under FLSA’s executive, administrative, or professional exemptions.

If an employee does not meet all three criteria, they must generally be classified as non-exempt and be eligible for overtime pay (time-and-a-half) for hours worked beyond 40 hours in a workweek.

Exemption Categories in Ohio

Let's break down the major exemption categories recognized under FLSA and applicable in Ohio:

1. Executive Exemption

• Primary duty: Managing the enterprise or a recognized department.
• Supervision: Directing the work of at least two full-time employees (or equivalent).
• Authority: Power to hire, fire, or significantly influence employment decisions.

2. Administrative Exemption

• Primary duty: Office or non-manual work directly related to business operations.
• Discretion and judgment: Exercising independent judgment on significant matters.

3. Professional Exemption

• Primary duty: Work requiring advanced knowledge in a field of science or learning, typically acquired by prolonged specialized instruction (e.g., doctors, lawyers, engineers, accountants, teachers).
• Creative professionals, such as artists, writers, and performers, also qualify under certain conditions.

4. Computer Employee Exemption

• Applies to computer systems analysts, programmers, software engineers, and other similarly skilled workers.
• Can be paid either on a salary basis (meeting the $1,128 threshold) or on an hourly basis of at least $27.63 per hour.

5. Outside Sales Exemption

• Employees engaged primarily in making sales or obtaining orders away from the employer's place of business.
• No salary threshold applies to outside sales employees.

Important Notes About Exempt Status in Ohio

• Job Titles Are Not Enough: Simply labeling someone as a “manager” or “engineer” doesn’t automatically make them exempt. Actual job duties must match the exemption criteria.
   
• Salary Threshold Updates: After July 1, 2025, the Department of Labor plans automatic updates the salary laws in ohio every three years, starting in 2028, to reflect changes in wage growth.
   
• Ohio State Law: Ohio largely defers to federal FLSA rules for exempt vs. non-exempt classifications. However, Ohio employers must still ensure compliance with both state minimum wage laws and any additional protections.
   
• Highly Compensated Employees (HCE): As of 2025, employees earning at least $151,164 annually may qualify as exempt under a relaxed duties test for HCEs.

What Kinds of Labor Laws Should You Monitor in Ohio?

The Ohio labor laws include regulations related to hours, leave, safety of workplace safety, anti-discrimination, and much more. Being an employer in Ohio, it is important to understand and abide by these laws to avoid he fines, penalties, or lawsuits that could damage our reputation. Now, let’s review some of the important labor laws that you must know if you conduct business or have employees based in Ohio.

Minimum Wage: Ohio's minimum wage for non-tipped employees is $10.70, higher than the national minimum. Employers should monitor inflation and budget for annual wage increases based on current rates.

Overtime: Ohio requires non-exempt employees to be paid one-and-a-half times their hourly rate for hours worked over 40 per week, except agricultural workers. Employers must classify employees carefully, as incorrect classifications can result in extra wages, penalties, or reputational damage.

Breaks and Rest Periods: Ohio doesn't mandate meal or rest breaks for employees aged 18 and over, aligning with the federal FLSA. However, employers must compensate for short breaks and provide 30-minute uninterrupted breaks for every five hours of continuous work.

Time Off and Leave: 

While Ohio does not have expansive state-specific leave laws, understanding the applicable federal requirements and relevant state provisions is crucial for compliance.

Here are a few instances that include Ohio's time off policy:

• Family and Medical Leave Act 
• Vacation Time
• Bereavement Leave
• Voting, Jury Duty, and Military Leave
• Workplace Safety Standards
• Anti-Discrimination Laws
• Unions
• Workers’ Compensation
• Local Ordinances

Consequences of Misclassification

Misclassifying an employee as exempt when they do not meet all the requirements can lead to serious legal consequences, including:

• Back pay for unpaid overtime,
• Liquidated damages (double back pay),
• Fines and penalties from the U.S. Department of Labor (DOL),
• Class action lawsuits by employees.

Correct classification is essential to avoid costly mistakes.

How EasySource Transforms Hiring for Exempt Roles

Finding the right exempt candidates—especially those meeting strict salary and skills requirements—can be a time-consuming process. This is where EasySource steps in.

EasySource is the world’s first fully automated talent-sourcing platform that revolutionizes recruiting through advanced AI filters and automation. Key features include:

• AI-powered candidate search based on location, skills, education, experience, and U.S. work authorization.
• Generative AI to create personalized outreach messages across platforms like LinkedIn.
• Automation to seamlessly engage potential candidates, dramatically improving recruiter efficiency.

By leveraging EasySource, companies can rapidly build strong pipelines of qualified exempt candidates without spending countless hours manually sourcing resumes.

Conclusion

Understanding exempt vs non-exempt employee classifications is more important than ever for Ohio employers in 2025. With the new salary thresholds, stricter duties tests, and automatic future updates, compliance is no longer optional—it's critical.

Whether you're an HR professional, hiring manager, or business owner, staying current on state and federal labor laws ensures you protect both your organization and your employees. When in doubt, consulting an employment attorney or HR specialist is a smart move.

And if you’re ready to simplify hiring for exempt roles, consider leveraging tools like EasySource to find, connect with, and hire top talent faster than ever.

FAQs

Q1. What happens if an exempt employee in Ohio works more than 40 hours?
If they are properly classified as exempt, they are not entitled to overtime pay. However, employers may still choose to offer bonuses or compensatory time.

Q2. Can part-time employees be exempt?
Yes, if they meet the salary basis, salary level, and duties tests. However, meeting the salary level could be more difficult for part-time roles.

Q3. What if an exempt employee's salary dips below the threshold temporarily?
If the salary drops below $1,128 per week, they could lose their exempt status unless the reduction fits into very narrow exceptions outlined by the DOL.