Ohio Paycheck and Wage Payment Laws

Ohio paycheck laws protect employees from being taken advantage of by their employers in a number of ways. These include laws that ensure employees are paid a fair wage on a regular basis. A person should take a look at these laws if they think that their employer is engaging in unfair paycheck practices.

When Must Paychecks Be Sent Out?

The law requires that an employer pay an employee at least twice per month. The same law applies to all employees. The only exception is for a longer pay period if it is customary in a certain profession. If an employer wants to pay employees more often, such as weekly or even daily, then they can certainly choose to do that. What they cannot do is choose to pay employees less frequently.

What Happens If I Am Fired?

Ohio last paycheck laws do recognize a difference between when a worker must normally be given their paycheck and when their employer has to pay an employee after the employee is fired or quits. Per the law in Ohio, an employee should be paid their last paycheck either on the next payday following their last day on the job or 15 days after their final day of employment, whichever occurs first.

If a worker’s company offers paid vacation leave, then generally the worker is entitled to receive compensation for any unused vacation time that they have accrued when they leave the job. However, if the company has policies limiting how much unused paid time off a worker can accrue or for which they can be paid, then, of course, the paycheck would be allowed to reflect those policies.

There is no law that requires an employer to offer paid vacation leave or to pay for unused vacation time. Whether an employer has these policies is the choice of the employer. But if an employer does promise that unused paid vacation is compensated when an employee’s job is terminated, they must respect their own policy.

In addition, an employer can make only those deductions from an employee’s final paycheck that are required under federal or Ohio state law, such as deductions for taxes or garnishments, or deductions that the employee has authorized specifically in writing.

Can My Paycheck Be Garnished?

To recover money directly from a worker’s paycheck for a personal debt, the creditor trying to garnish the workers’ paycheck must first go to court and file a lawsuit to establish that the debt is legally enforceable. They must win their case and obtain a judgement stating what amount is owed. They can then seek a garnishment order which would give them permission to seek garnishment of the worker’s paycheck.

Once the creditor has obtained a garnishment order, the creditor can submit the order to the employer, who then must take the amount allowed by the order directly from the worker’s wages and hand it over to the creditor. The worker whose paycheck the creditor wants to garnish would receive notice of all of these actions on the part of the creditor, i.e. the filing of the lawsuit, the judgment against the debtor, the fact that the creditor is seeking garnishment. So, it should not be a surprise to the debtor if their paycheck should be garnished.

There are, however, some types of debt where the creditor does not have to get the court’s express permission to garnish a paycheck. These debts include unpaid child support, back taxes, and student loans that are in default.

It is important to note that both Ohio and federal wage garnishment laws limit the amount that can be garnished from any one paycheck to 25% of the disposable income paid in the paycheck. Disposable income is the amount of income that is left after taxes and other mandatory deductions are taken from the amount of the paycheck. Deductions for items such as health insurance, life insurance and 401K contributions would not count to reduce the disposable income.

There is an exception, of course, to limitations on amounts that can be garnished from a paycheck. The exceptions apply to garnishment for child support or income taxes; these can be greater than 25% of the employee’s wages.

As noted above, if a worker owes child support, student loans or taxes, the government or a creditor can garnish their wages without a court judgment. The rules regarding the amounts that can be taken from a paycheck are different as well:

• Child support: Under federal law, as much as 50% of a worker’s disposable earnings can be garnished for child support if the worker is supporting a spouse or a child who is not the subject of the order. If the worker is not supporting a spouse or child, as much as 60% of their earnings may be taken. An additional 5% is allowed for support payments over 12 weeks in arrears;
• Student Loans in Default: The U.S. Department of Education can use what is known as an “administrative garnishment” to deduct wages without a court judgment. They may take as much as 15% of a person’s disposable income;
• Unpaid taxes: The federal government can deduct unpaid back taxes from a person’s wages without a court judgment. The amount can vary depending on the person’s dependents and deduction rate. This is a specialized and complicated area of the law and if it is an issue for a person, they would be well-advised to consult an experienced tax lawyer.

An employer may also take out money from an employee’s wages to pay off a loan that the employer may have made to the employee. Or, employers can deduct amounts that an employee has chosen to donate to a charity. But deductions of this type are allowed only with the employee’s express written permission.

Can I Recover a Withheld Paycheck?

Ohio paycheck withholding laws state that an employer does not have the right to withhold an employee’s paycheck from them under any circumstances. If an employee is having difficulties getting their paycheck from their employer, they are entitled to sue their employer. Another option the employee has is to file a claim for unpaid wages with the Ohio Department of Labor, Wage and Hour Division.

What Else Do I Need to Know?

There is no law that prevents an employer from asking an employee to cover the cost of uniforms, except where the cost of a uniform would mean that the employee’s earnings in a pay period would be less than minimum wage. Also, for some jobs, an employee might have to pass a medical exam or drug test, and the law allows the employer to pass the cost of these items to the employee.

Where Can I Find the Right Lawyer?

If your employer is refusing to respect your right to a paycheck, an Ohio employment lawyer can help you get the money for which you have worked. Thus, you should not hesitate to consult with an employment lawyer if you cannot reach an agreement with your employer over an issue involving your paycheck.