Server Overtime Pay Calculation Under Ohio Laws

Server Overtime Pay Calculation Under Ohio Laws: Key Takeaways

Ohio's minimum wage for 2025 is $10.70 per hour, with a tip credit allowing employers to pay servers a base wage of $5.35/hour.
Overtime pay rate for servers is 1.5 times the full minimum wage, equaling $16.05 per hour for overtime hours.
Employers must ensure total compensation (wages plus tips) meets required minimums; tip credit cannot exceed 50% of minimum wage, even for overtime.

This article explains how overtime pay is calculated for servers in Ohio, including minimum wage, tip credits, and employer obligations.

It offers practical details and examples to help employers and servers understand their rights and responsibilities.

1. What Is Server Overtime Pay Calculation in Ohio?

In Ohio, servers are considered tipped employees, which affects how their wages and overtime pay are calculated.

When servers work more than 40 hours in a week, they qualify for overtime pay at 1.5 times the full minimum wage, not just the tipped base wage.

Since Ohio’s 2025 minimum wage is $10.70 per hour, the overtime rate is $16.05 per hour ($10.70 × 1.5).

This means servers earn at least $10.70 per hour for regular time, including tips, and $16.05 per hour for overtime hours worked.

Employers looking to hire servers and waiters effectively should understand these wage and overtime rules to maintain compliance and fairness.

2. Base Wage and Tip Credit for Ohio Servers

Ohio allows employers to pay tipped servers a base wage as low as 50% of the minimum wage, which is $5.35 per hour in 2025.

The remainder of the minimum wage must be made up from the employee’s tips, ensuring total hourly earnings meet or exceed $10.70.

This practice is known as a tip credit, and employers must comply with strict limits on how much of the minimum wage it can represent.

Crucially, the tip credit applies only to regular hours, not to overtime hours.

For more on creating appropriate job posts, employers can check out how to create a restaurant job description.

3. Calculating Server Overtime Pay in Ohio

The overtime rate for Ohio servers is based on the full minimum wage, not the tipped wage.

Employers must pay 1.5 times the full minimum wage for all hours worked over 40 in a week. For 2025, that equals $16.05 per hour.

Tips cannot reduce the cash overtime rate below this standard. Employers must top up wages if tips do not cover the minimum total earnings required.

Employers can find detailed advice on hospitality hiring costs to better budget for wage and overtime expenditures.

Example of Ohio Server Overtime Pay Calculation

Consider a server working 45 hours in one week:

Regular hours (40 hrs) paid at $5.35/hour plus tips equal to minimum wage of $10.70/hour.
Overtime hours (5 hrs) paid at 1.5 times $10.70, which is $16.05/hour.
Overtime pay = 5 hours × $16.05 = $80.25, plus regular base pay of $214.00 (40 × $5.35).
Total wages for the week = $294.25, plus any tips.

If the server’s total weekly tips combined with these wages fall short of $294.25, the employer must pay the difference.

4. Employer Obligations for Overtime Pay and Tip Credit in Ohio

Employers must carefully monitor hours worked and total compensation to comply with Ohio laws.

They cannot claim a tip credit exceeding 50% of the minimum wage, and tips never reduce the required overtime rate.

Moreover, employers are responsible for ensuring servers receive at least minimum wage equivalents after accounting for both pay and tips.

Learn more about managing servers in a restaurant effectively to maintain compliance and employee satisfaction.

5. Additional Considerations for Servers in Ohio

Non-Tipped Duties and Wage Requirements

If a server spends more than 20% of their workweek on non-tipped duties like cleaning or setup, the entire time must be compensated at the full minimum wage without applying the tip credit.

Tip Pooling in Ohio

Ohio allows tip pooling but only among employees who customarily receive tips, such as servers and bartenders.

Managers, supervisors, or business owners are forbidden from participating in tip pools.

Resources such as the ultimate tip pooling spreadsheet template can help employers manage tip pools transparently.

6. Resources for Ohio Servers and Employers

For further guidance on wage laws and overtime calculations, the following resources provide comprehensive, authoritative information:

Server Overtime Pay Calculation Under Ohio Laws: Conclusion

Ohio’s laws for tipped employees ensure servers receive fair wages including overtime compensation based on the full minimum wage.

Employers must pay a base wage plus tips that meet or exceed the standard minimum wage and calculate overtime pay at 1.5 times the full minimum wage.

Understanding these rules helps both servers and employers maintain compliance and fairness in compensation.

For employers, effective server hiring tips can improve your restaurant’s performance and employee retention.

01. What is the minimum wage for servers in Ohio in 2025?

The minimum wage for servers in Ohio in 2025 is $10.70 per hour, with a tip credit that allows employers to pay as low as $5.35 per hour in base wage.

02. How is overtime pay calculated for servers in Ohio?

Overtime pay for servers is calculated at 1.5 times the full minimum wage of $10.70 per hour, resulting in an overtime rate of $16.05 per hour.

03. Can tips be used to satisfy overtime pay requirements?

No. Tips cannot reduce the cash overtime rate below the required 1.5 times the full minimum wage. Employers must ensure overtime wages are fully paid in cash if tips do not cover the amount.

04. Who can participate in tip pooling in Ohio?

Only employees who customarily receive tips, such as servers and bartenders, can participate in tip pooling. Managers and supervisors are prohibited.

05. What are employer responsibilities regarding tip credits in Ohio?

Employers must ensure tip credits do not exceed 50% of the minimum wage and that total compensation meets or exceeds the minimum wage requirements.