Ohio Overtime Rules for Tipped Employees: What You Need to Know

Ohio Overtime Rules for Tipped Employees: Key Takeaways

• Ohio's minimum wage is $10.70/hour for non-tipped workers as of 2025, with a tipped minimum wage of $5.35/hour plus tips.
• Overtime pay for tipped employees must be 1.5 times the regular minimum wage, equaling $16.05/hour for hours over 40 per week.
• Employers must ensure total compensation including tips meets or exceeds overtime rates and cannot claim tip credits beyond 50% of minimum wage.

Understanding Ohio overtime rules is essential for employers and tipped employees. This guide clarifies pay calculations and legal requirements for overtime work.

For additional context, see minimum wage for servers.

Learn how Ohio balances tipped wages, tip credits, and overtime protections to safeguard worker rights.

1. Overview of Ohio Minimum Wage and Tip Credit Rules

Ohio sets its minimum wage for 2025 at $10.70 per hour for non-tipped employees. Tipped employees may be paid a base wage of $5.35 per hour if their tips bring them up to or above the $10.70 threshold.

This base wage represents 50% of the total minimum wage, reflecting the maximum tip credit allowed under Ohio law. Employers must carefully track tips to ensure that combined earnings meet the minimum wage.

Review the server job description to understand common tipped duties.

2. How Ohio Overtime Pay is Calculated for Tipped Employees

When tipped employees work more than 40 hours in a workweek, they qualify for overtime pay.

Ohio requires paying overtime at 1.5 times the regular minimum wage, which currently totals an overtime rate of $16.05 per hour ($10.70 × 1.5).

Example: A tipped employee working 45 hours would be paid regular wages for the first 40 hours plus overtime for the additional 5 hours.

The calculation would be:

• Regular pay: 40 hours × $5.35 = $214.00
• Overtime pay: 5 hours × $16.05 = $80.25
• Total pay before tips: $214.00 + $80.25 = $294.25

If tips do not bring total earnings to this amount, the employer must compensate the difference.

Compare typical earnings with our cocktail server salary guide.

Employer Obligations Regarding Tip Credits and Overtime

Ohio law limits the tip credit to 50% of the minimum wage, ensuring tipped employees receive at least half of their minimum wage in direct wages.

Employers cannot use tips to offset the overtime rate below the legally mandated $16.05/hour.

This protects tipped employees from being undercompensated for overtime work.

3. Additional Ohio Regulations Affecting Tipped Overtime Employees

Non-Tipped Duties and Minimum Wage Payments

If a tipped employee spends over 20% of their workweek performing non-tipped duties—such as cleaning or set-up—they must be paid the full minimum wage during those periods rather than the tipped wage.

Tip Pooling Rules for Tipped Employees in Ohio

Ohio allows tip pooling among employees who customarily receive tips, including servers and bartenders.

Managers, supervisors, and business owners are explicitly barred from participating in tip pools.

This ensures equitable distribution of tips among frontline tipped staff.

See the bartender job description for more on tipped bar roles.

Use this ready-to-edit tip pooling template to distribute tips fairly.

4. Common Compliance Pitfalls to Avoid in Ohio

• Failing to pay overtime at 1.5 times the regular minimum wage for hours over 40.
• Exceeding the tip credit limitation by paying tipped employees less than 50% of the minimum wage in base pay.
• Including non-tipped employees or management in tip pools.
• Not accounting for non-tipped duties exceeding 20% of work hours with proper wage adjustment.

Learn why allowing unpaid tasks can backfire in working off the clock.

5. Best Practices for Ohio Employers Managing Tipped Employee Overtime

Maintain clear records of hours worked, categorizing tipped and non-tipped duties.

Track tip income accurately to verify employees meet minimum wage requirements.

Check current waitress salary benchmarks to guide pay decisions.

Provide written notice regarding tip credit policies and overtime calculations.

Establish transparent and lawful tip pooling policies that comply with Ohio regulations.

When hiring, follow this guide to post jobs for tipped employees effectively.

6. Useful Ohio Government and Official Resources on Overtime for Tipped Workers

• Ohio Department of Commerce – Division of Industrial Compliance: https://com.ohio.gov/divisions-and-programs/industrial-compliance
• U.S. Department of Labor – Fair Labor Standards Act (FLSA): https://www.dol.gov/agencies/whd/flsa
• Ohio Revised Code – Minimum Fair Wage Standards: http://codes.ohio.gov/orc/4111

Ohio Overtime Rules for Tipped Employees: Conclusion

Ohio ensures tipped employees receive fair compensation for overtime by requiring pay at 1.5 times the full minimum wage rate for hours over 40 weekly.

Employers must closely monitor wage and tip amounts to comply with both state tip credit and overtime rules.

Understanding these regulations helps employers maintain legal compliance and supports fair treatment of tipped workers.