Employer of Record ยท Ohio
Ohio is home to Columbus's fast-growing tech sector, Cleveland's world-class healthcare industry, and Cincinnati's Fortune 500 consumer goods companies. But Ohio's monopolistic workers' compensation system - where private insurance is prohibited - catches many out-of-state employers off guard. WorkGenius becomes your legal employer in Ohio and handles every obligation, from BWC enrollment to final pay, from day one.
Facts reviewed against primary sources in September 2026
| Requirement | Ohio | Detail |
|---|---|---|
| Minimum wage | $11.00/hr | For employers with annual gross receipts over $405,000; $7.25/hr for smaller employers; $5.50/hr tipped cash wage. Employees under 16 are paid the federal minimum of $7.25. Indexed to CPI and adjusted every January 1. |
| State income tax | 0% / 2.75% | Ohio moved to a flat rate for 2026 under H.B. 96: no tax on the first $26,050 of nonbusiness income, then a flat 2.75%. The $26,050 threshold is not indexed. Business income stays at a flat 3% above the $250,000 deduction. |
| Workers' compensation | Monopolistic | Ohio is a monopolistic state - employers must use the Ohio Bureau of Workers' Compensation (BWC). Private carriers are not permitted. |
| Final paycheck | First scheduled payday | Final wages are due on the first regularly scheduled payday after termination, under the Ohio wage payment law (R.C. 4113.15). |
| Ohio Civil Rights Act threshold | 4+ employees | The Ohio Civil Rights Act applies to employers with 4 or more employees - a lower threshold than federal law's 15-employee requirement. |
| Paid leave mandate | None (state) | Ohio has no state-mandated paid sick leave or paid family leave. Federal FMLA applies to eligible employers and employees. |
The Defining Law
Ohio is one of only four monopolistic workers' compensation states in the US. Unlike most states where employers can shop for workers' comp coverage from private insurers, Ohio law requires all employers to obtain coverage exclusively through the Ohio Bureau of Workers' Compensation (BWC) - a state agency. Employers pay premiums directly to the BWC, must report payroll on a regular basis, and are subject to audits. There is no private insurance alternative. For out-of-state companies hiring their first Ohio employee, this comes as a genuine surprise - and failure to enroll with the BWC before your first hire creates immediate legal exposure.
Get Ohio-Compliant TodayKey Requirements
Ohio Coverage
Ohio's BWC monopolistic system and wage payment law create compliance obligations that trip up out-of-state employers - WorkGenius manages every one of them.
WorkGenius registers with the Ohio BWC, reports payroll, pays premiums, and administers claims for every Ohio employee. You never face the penalties and liability that come with operating uninsured in a monopolistic state.
Ohio's wage payment law governs when wages must be paid and final pay obligations. Final wages must be issued on the first scheduled payday after termination. WorkGenius manages pay schedules, final pay timing, and all required wage statements to keep you compliant.
Ohio Department of Job and Family Services unemployment insurance contributions calculated and remitted every payroll cycle. New employer rate is 2.7% on the first $9,000 of each employee's wages.
Ohio's Civil Rights Act applies to employers with 4 or more employees - much lower than federal law. WorkGenius employment agreements, policies, and onboarding documentation meet Ohio Civil Rights Act requirements from your first Ohio hire.
ACA-compliant health coverage, 401(k), PTO, and disability insurance - all enrolled and administered. Ohio's flat 2.75% state income tax means benefits structuring has a measurable impact on total employee take-home pay.
Final pay on the first scheduled payday after termination, compliant separation documentation, COBRA administration, and proper handling of any non-compete or confidentiality obligations at offboarding - all managed by WorkGenius.
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Ohio's monopolistic workers' compensation system means employers cannot purchase coverage from private insurers - only the Ohio Bureau of Workers' Compensation (BWC). WorkGenius manages BWC enrollment, payroll reporting, premium payments, and Ohio wage payment law (R.C. 4113.15) compliance directly in the platform, on every payroll cycle.
Beyond the BWC, Ohio imposes several obligations that require attention from day one of employment.
H.B. 352, effective April 15, 2021, made the biggest change to Ohio employment discrimination law in a generation. It cut the limitations period for most Chapter 4112 employment claims to two years, requires an administrative charge with the Ohio Civil Rights Commission before suit, and eliminated individual liability for supervisors and managers. Those three changes are what an Ohio employer actually needs to know about Chapter 4112. WorkGenius applies the current procedure to every Ohio matter.
Ohio's newest wage statute requires employers to give each employee a written or electronic statement with every payment of wages, itemising gross and net wages, the pay period dates, hours worked, hourly rate and all additions to and deductions from pay. It is the statute most directly on point when a page promises to handle Ohio wage statements. WorkGenius issues a compliant statement on every Ohio pay run.
This is the most distinctive thing about Ohio payroll. Roughly 600 Ohio municipalities levy their own income tax, commonly between 1% and 3%, and many school districts levy one on top of that. Both carry employer withholding duties, and the applicable rate depends on where the employee lives and works rather than on the state rate alone. An employer budgeting only for Ohio's flat 2.75% will under-withhold in most of the state. WorkGenius identifies the correct municipality and school district for every Ohio employee.
Ohio employers must enroll with the state Bureau of Workers' Compensation - no private insurer is permitted. BWC premiums are calculated on reported payroll and paid directly to the state. New employers must enroll before their first hire; failure to do so results in penalties, retroactive premiums, and potential personal liability. WorkGenius manages every aspect of BWC compliance on your behalf.
The Ohio wage payment law (R.C. 4113.15) requires that wages be paid on regularly scheduled paydays, with final wages due no later than the first scheduled payday after separation. Ohio's tiered minimum wage ($11.00/hr for large employers) is adjusted each year for inflation based on the Consumer Price Index. Violations can result in wage claims and civil penalties.
Ohio employers register with the Ohio Department of Job and Family Services and pay SUTA on the first $9,000 of each employee's wages per year. The new employer rate is 2.7%. Rates are experience-rated over time. WorkGenius registers, files quarterly reports, and remits all contributions.
Ohio's Civil Rights Act (Ohio Rev. Code Ch. 4112) prohibits discrimination in employment based on race, color, religion, sex, national origin, disability, age, and ancestry. It applies to employers with 4 or more employees - well below the 15-employee federal threshold. WorkGenius policies, offer letters, and HR practices are drafted to meet Ohio Civil Rights Act standards.
Simple Process
Once the offer is signed, your new hire is set up and payroll-ready within 24 hours.
Workers, roles, locations, and start dates. We tailor the setup to your needs.
Our AI runs every worker through Ohio's classification and compliance rules. We prepare compliant contracts and payroll setup.
Onboarded with Ohio-compliant contracts, benefits enrolled, payroll running from day one.
Payroll runs on Ohio rules. Taxes filed. Compliance monitored. One weekly invoice.
Ohio is a monopolistic workers' compensation state - one of only four in the US. By law, all Ohio employers must obtain workers' compensation coverage exclusively through the Ohio Bureau of Workers' Compensation (BWC), a state agency. Private insurance carriers are not legally permitted to provide workers' comp coverage in Ohio. Many out-of-state companies discover this only after hiring their first Ohio employee. WorkGenius is already enrolled with the Ohio BWC and manages all payroll reporting, premium payments, and claims administration on your behalf.
Operating in Ohio without BWC coverage is a violation of state law. Consequences include civil penalties, liability for the full cost of any workplace injuries (without the protection of the workers' comp system), retroactive premium assessments with interest, and in some cases personal liability for company officers. The BWC must be enrolled before your first Ohio hire - not after. WorkGenius handles enrollment as part of its standard onboarding for Ohio engagements.
Ohio adjusts its minimum wage annually based on the Consumer Price Index. As of January 1, 2026, the rate is $11.00 per hour for employers with gross receipts exceeding $405,000 per year. Employers below that threshold pay the federal minimum of $7.25 per hour. Employees under 16 are paid the federal minimum wage of $7.25 per hour regardless of employer size. Tipped employees have a separate cash wage of $5.50 per hour for 2026, with the tip credit making up the difference. WorkGenius applies the correct rate based on your business and updates automatically each January when Ohio publishes the new rate.
Under the Ohio wage payment law (R.C. 4113.15), final wages must be paid on the first regularly scheduled payday after the employee's separation - whether the separation is a termination or a resignation. Unlike California, Ohio does not require same-day or immediate final pay, but the first-scheduled-payday deadline is strictly enforced. Late payment of final wages can result in wage claims and civil penalties. WorkGenius tracks termination dates and ensures final pay is issued on time.
The federal Title VII anti-discrimination law applies to employers with 15 or more employees. Ohio's Civil Rights Act (Ohio Rev. Code Ch. 4112) sets the threshold at just 4 employees - meaning many small businesses that are exempt from federal law are still covered by Ohio's protections. The Ohio Civil Rights Act prohibits discrimination based on race, color, religion, sex, national origin, disability, age, and ancestry. WorkGenius employment agreements and HR policies are written to comply with Ohio's lower threshold from your first hire.
Yes. Ohio courts enforce non-compete agreements that meet a reasonableness test. Courts evaluate whether the restriction is reasonable in duration, geographic scope, and the type of activity restricted, and whether it protects a legitimate business interest (such as trade secrets, confidential information, or customer relationships). Unlike some states, Ohio courts may modify - rather than void - an overly broad non-compete to make it enforceable. WorkGenius drafts non-compete provisions that meet the Ohio standard while protecting your business interests.
WorkGenius handles worker classification, Ohio payroll, benefits, and every other compliance requirement so you don't have to. Get started today.
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