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Do Tipped Employees Get Paid Overtime in Ohio?

It can be difficult to understand your wage and overtime rights as a tipped worker in Ohio. If you receive tips for your work in a restaurant, bar or another business, special state and federal laws apply to you. However, you are still entitled to adequate overtime pay if you work more than 40 hours in a single workweek.

Tipped workers in Ohio have specific wage and overtime protections under state and federal law. If you work over 40 hours a week, you’re entitled to unpaid overtime
pay, regardless of how much you make in tips.

What Are Ohio’s Overtime Laws for Tipped Employees?

The State of Ohio follows the federal government’s laws under the Fair Labor Standards Act (FLSA) when it comes to overtime pay. In Ohio, any nonexempt employee who works more than 40 hours in a seven-day workweek is entitled to overtime pay at a rate of one-and-one-half times the worker’s normal wage rate.

The minimum wage for tipped workers in Ohio is currently $5.35 per hour. The worker must receive enough money in tips to make up the difference and meet the state’s full minimum wage requirement of $10.70 per hour. This system is known as a tip credit. If the worker does not receive enough in tips to bridge the wage gap, an employer is required to pay the employee the difference.

Ohio’s overtime laws for tipped employees apply to the full minimum wage, not the reduced cash wage. Tip credit does not apply to overtime pay, meaning an employer cannot claim a larger tip credit for overtime hours. All tipped workers in Ohio must receive at least $16.05 per hour in overtime pay to meet the state’s minimum.

Common Tactics Employers Use to Avoid Paying Tipped Workers Overtime

Many employers in Ohio intentionally or unintentionally fail to meet the overtime pay requirement. They may use tactics such as:

  • Calculating overtime rates based on cash wage rather than minimum wage
  • Using tip credits toward the overtime requirement
  • Asking tipped workers to work off the clock
  • Misclassifying tipped workers as overtime-exempt
  • Making tip pooling errors, such as sharing with nontipped workers
  • Altering or failing to properly maintain time records

A business or employer in Ohio can be guilty of illegally underpaying tipped workers if it does not provide appropriate overtime pay to employees who work more than 40 hours per week.

What to Do in the Face of Unpaid Overtime as a Tipped Worker

If your boss is violating Ohio’s overtime laws by paying you less than you deserve as a tipped worker, legal recourse may be available. You may be entitled to back pay for unpaid overtime in addition to liquidated damages. These are “double damages,” or an additional amount equivalent to your unpaid overtime wages.

Document the issue by keeping a careful record of your hours worked and wages paid. If your employer does not remedy the issue once it is brought to their attention, consult with an employment attorney for legal assistance. An attorney can help you file a claim with the Department of Labor and pursue financial damages for your unpaid overtime through legal action.

Retaliation for filing an unpaid overtime claim is against the law in Ohio. If you get fired or demoted for seeking a remedy for an overtime violation, you could qualify for additional compensation. Contact an attorney in Ohio at Scott & Winters Law Firm, LLC to discuss your individual case in more detail at no cost or obligation.