What Is an Exempt Employee in Ohio? Salary, Duties, and Overtime Rules

Meta description: Learn what makes an employee exempt in Ohio, how federal salary and job-duty tests work, and when overtime may still be required.

An exempt employee in Ohio is generally an employee who meets a legal exemption from overtime pay under the federal Fair Labor Standards Act (FLSA) and applicable Ohio law. The label is not determined by job title, salary alone, or an employer’s preference. It depends on how the employee is paid and what work the employee actually performs. Understanding the salary-basis and job-duties tests can help workers and employers assess whether overtime is required.

What “Exempt” Means in Ohio

In most workplace discussions, “exempt” means exempt from the FLSA’s overtime requirement. Covered, nonexempt employees generally must receive at least one and one-half times their regular rate of pay for hours worked over 40 in a workweek. An exempt employee who meets the requirements of a valid exemption is not entitled to that federal overtime premium.

Exempt status does not mean an employee is exempt from every workplace law. Minimum-wage rules, anti-discrimination protections, workplace-safety requirements, and other employment laws may still apply. Nor does the term automatically mean an employee has a fixed schedule or cannot receive bonuses, commissions, or other compensation.

Ohio’s wage-and-hour rules operate alongside federal law. Employers must comply with the rule that gives an employee greater protection when federal and state requirements differ. The Ohio Department of Commerce describes state minimum-wage and overtime requirements, while the U.S. Department of Labor (DOL) administers the FLSA.

The Main Tests for Exempt Status

For many white-collar exemptions, an employer must show that the position satisfies three requirements: salary basis, salary level, and job duties. Each test matters. Paying a worker a salary does not, by itself, make the worker exempt. Likewise, a prestigious title such as “manager” or “analyst” does not establish an exemption.

Some occupations have different rules. For example, certain teachers, doctors, lawyers, and outside sales employees may qualify for an exemption without meeting the standard salary-level test. The details depend on the occupation and the specific exemption.

Federal Salary Threshold Currently Used

As of 2026, the federal salary threshold generally used for the executive, administrative, and professional exemptions is $684 per week, or $35,568 per year, paid on a salary basis. This is the threshold established by the DOL’s 2019 rule. A federal rule that would have increased the threshold in 2026 was vacated by a federal district court in November 2026. As a result, employers should not assume that the higher 2026 or 2026 figures in that rule are currently enforceable.

The DOL’s highly compensated employee test also reverted to the 2019 threshold of $107,432 in total annual compensation, including at least $684 per week paid on a salary or fee basis. This simplified route still requires the employee to regularly perform at least one exempt executive, administrative, or professional duty. It is not a blanket exemption for everyone earning above that amount.

Regulations and court decisions can change, and litigation may affect how a particular rule applies. Employers and employees should check current DOL guidance or obtain legal advice before making a classification decision. The salary figures above describe the federal standards generally in effect as of 2026; they should not be treated as a guarantee that an exemption applies.

What the Salary-Basis Test Requires

Under the salary-basis test, an employee generally receives the same predetermined amount for each pay period in which the employee performs work, regardless of the number of hours or days worked. The salary cannot ordinarily be reduced because the employee worked fewer hours in a particular week or produced less work than expected.

Permitted deductions are limited. Depending on the circumstances, deductions may be allowed for a full-day absence for personal reasons, certain full-day sickness absences under a bona fide leave plan, or disciplinary suspensions imposed in good faith for serious workplace-rule violations. Partial-day salary deductions are generally restricted for exempt employees. Employers should review the specific regulatory exceptions before reducing an exempt employee’s pay.

An employer that makes improper salary deductions may risk losing the exemption, particularly if the deductions reflect an actual practice rather than an isolated mistake. A clearly communicated policy, prompt reimbursement, and good-faith compliance efforts can matter under the regulations, but they do not excuse every deduction.

Common Exemptions and Their Duties Tests

Executive Exemption

An employee may qualify as an executive if the employee’s primary duty is managing the enterprise or a recognized department or subdivision; the employee customarily and regularly directs the work of at least two full-time employees or their equivalent; and the employee has authority to hire or fire, or the employee’s recommendations about significant employment decisions receive particular weight. The standard salary requirements usually apply.

A working supervisor is not automatically exempt. The employer must assess the employee’s primary duty and actual authority, not simply count the number of people on a team. An employee who spends most working time doing the same routine production tasks as coworkers may not meet the executive duties test.

Administrative Exemption

The administrative exemption generally applies to employees whose primary duty is office or nonmanual work directly related to the management or general business operations of the employer or its customers. The employee must also exercise discretion and independent judgment on significant matters. Examples may include certain human-resources, finance, compliance, or business operations roles, but the job title and industry are not decisive.

Following detailed procedures, entering data, or applying a fixed checklist does not necessarily amount to exercising the required discretion. The test focuses on the level of judgment involved and the importance of the decisions the employee makes.

Learned and Creative Professional Exemptions

The learned-professional exemption generally covers work requiring advanced knowledge in a field of science or learning, customarily acquired through prolonged specialized education. The work must be predominantly intellectual and require consistent discretion and judgment. Certain lawyers, doctors, teachers, and other licensed professionals have special rules; some do not need to satisfy the usual salary-basis and salary-level tests.

The creative-professional exemption can cover work requiring invention, imagination, originality, or talent in a recognized artistic or creative field. Routine work that follows established techniques is less likely to qualify. For both professional categories, the actual work and applicable regulatory requirements matter more than the job title.

Computer Employee Exemption

Some computer employees may qualify if they meet a specialized duties test involving systems analysis, software design or development, or similarly skilled computer work. Under federal rules, eligible computer employees may be paid on a salary basis meeting the standard threshold or on an hourly basis at a specified minimum rate. Merely using computers, providing routine technical support, or working in an IT department does not automatically qualify a worker for this exemption.

Outside Sales Exemption

An outside sales employee’s primary duty must be making sales or obtaining orders or contracts, and the employee must customarily and regularly work away from the employer’s place of business. This exemption has no federal salary requirement. Inside sales representatives who work primarily from an office or home may not satisfy the outside-sales test, even if they earn commissions.

Ohio Minimum Wage and Overtime Considerations

Ohio has its own minimum-wage law, and the state’s minimum wage is adjusted periodically for some employers. In 2026, the Ohio minimum wage for non-tipped employees covered by the state rate is $10.70 per hour; the tipped cash wage is $5.35 per hour, subject to rules requiring tips and cash wages to equal at least the applicable minimum wage. Some workers and employers are covered by the federal minimum wage instead, and statutory exceptions may apply.

Ohio overtime law generally requires covered employers to pay one and one-half times an employee’s regular rate for hours worked over 40 in a workweek, subject to exemptions and other legal rules. Employers should not assume that paying the Ohio minimum wage, or complying with it, settles whether a job is exempt. Minimum-wage coverage and overtime classification are related but distinct questions.

Ohio law contains specific exemptions and exceptions, and federal law may apply even where a state-law exception is relevant. For a particular job, the employer should evaluate both the FLSA and Ohio requirements rather than relying on a single state or federal label.

Misclassification: Common Mistakes

• Relying on a job title: “Manager,” “administrator,” or “professional” does not prove that the duties test is met.
• Assuming salary means exempt: A salary is only one part of the analysis for many exemptions.
• Counting occasional supervisory tasks as management: The employee’s primary duty and regular responsibilities matter.
• Ignoring hours and actual work: A written job description may not reflect the work the employee performs day to day.
• Applying the highly compensated test too broadly: Earnings alone are insufficient; the required duties still apply.
• Using a contractor label to avoid overtime: Independent-contractor status is a separate legal question and depends on the real working relationship.

Misclassification can result in unpaid overtime, liquidated damages, penalties, attorney fees, and other costs. Employers may reduce risk by documenting job duties, reviewing pay practices, training managers, and reassessing classifications when responsibilities change.

How Employees Can Check Their Classification

An employee who is unsure about exempt status can compare actual duties with the relevant exemption’s legal test, review pay statements and written policies, and record hours worked. The employee can ask the employer how the role was classified and which exemption applies. A job description may be useful, but it is not conclusive if it does not match daily work.

Workers can contact the U.S. Department of Labor’s Wage and Hour Division for information about federal wage rules. Ohio workers can also consult the Ohio Department of Commerce’s wage-and-hour resources. For unpaid wages or a disputed exemption, an employment attorney or a government agency can explain options and deadlines. Employees should keep relevant records and avoid assuming that an employer’s “exempt” designation resolves the legal question.

Reliable Sources for Ohio Exempt-Employee Rules

For current details, consult the U.S. Department of Labor’s overtime guidance and its Fact Sheets on exemptions and pay. The federal regulations for white-collar exemptions appear in 29 C.F.R. Part 541. Ohio-specific wage information is available through the Ohio Department of Commerce, Wage and Hour Division. These resources can help explain the rules, but individual classification decisions depend on the facts of the job and the law in effect at the time.