Hiring New Employees in Ohio: Legal Guidelines for Employers

Develop a clear job description that outlines the position's responsibilities, required qualifications, and essential functions. Ensure the description complies with Ohio employment laws and doesn't contain discriminatory language. This will serve as the foundation for your hiring process and help prevent discrimination claims.

Advertise the position through appropriate channels while ensuring compliance with equal employment opportunity laws. In Ohio, employers must avoid discriminatory hiring practices based on protected characteristics including race, color, religion, sex, military status, national origin, disability, age, or ancestry.

Create an application form that collects necessary information while complying with Ohio laws. Avoid questions about protected characteristics. Ohio follows 'ban-the-box' for public employers, but private employers can still ask about criminal history at this stage (though it's recommended to delay such questions until later in the hiring process).

Screen applications and conduct interviews based on job-related criteria. Document the selection process to demonstrate non-discriminatory practices. Maintain records of all applicants and reasons for selection/rejection for at least one year as required by federal law.

Obtain written authorization before conducting background checks. Ohio follows the Fair Credit Reporting Act (FCRA) requirements. Ensure background checks are job-related and consistent with business necessity. Consider the nature of the job, the nature and gravity of the offense, and the time passed since the offense or completion of the sentence.

Create a form that complies with FCRA requirements, clearly disclosing to the candidate that a background check will be conducted and obtaining their written authorization. This must be a standalone document, not buried in the employment application.

Draft an offer letter that includes position details, compensation, start date, employment relationship (at-will status), contingencies (background check, drug testing if applicable), and other relevant terms. Ohio is an at-will employment state, so clearly state this relationship unless you intend to create a contract for a specific term.

If offering more than at-will employment, draft a contract specifying employment terms, duration, termination conditions, and other relevant provisions. Most Ohio employment is at-will, but if you're creating a contract for a specific term or with specific termination provisions, ensure it's clearly drafted to avoid misinterpretation.

Draft an NDA to protect confidential business information. In Ohio, NDAs are generally enforceable if they're reasonable in scope, duration, and geographic area. Clearly define what constitutes confidential information and the employee's obligations regarding such information.

If necessary, draft a non-compete agreement. In Ohio, non-compete agreements are enforceable if they're reasonable in duration, geographic scope, and the restrictions imposed. They must protect legitimate business interests and not merely prevent competition. Consider whether a non-compete is truly necessary for the position.

Create or update your employee handbook to include company policies, procedures, and expectations. Include required policies on equal employment opportunity, anti-harassment, reasonable accommodation, leave policies, and other Ohio-specific requirements. The handbook should explicitly state that it is not an employment contract and doesn't alter the at-will relationship.

If this is your first employee in Ohio, register with the Ohio New Hire Reporting Program. All employers must report newly hired employees to the Ohio Department of Job and Family Services within 20 days of hire. This is required by federal and state law for child support enforcement.

Register with the Ohio Department of Job and Family Services for unemployment insurance if this is your first employee. All employers in Ohio must pay unemployment insurance tax if they have at least one employee for 20 weeks in a calendar year or pay at least $1,500 in wages in a calendar quarter.

Register with the Ohio Bureau of Workers' Compensation (BWC). Ohio requires all employers with one or more employees to have workers' compensation insurance. Unlike many states, Ohio has a monopolistic state fund system, meaning private insurance is not an option for most employers.

Complete Form I-9 to verify the employee's identity and authorization to work in the United States. The employee must complete Section 1 on or before their first day of work. You must complete Section 2 within 3 business days of the employee's first day. Retain the form for the later of 3 years after hire or 1 year after termination.

Have the employee complete a W-4 form to determine federal income tax withholding. This form indicates the employee's filing status and adjustments to income, which determines how much federal income tax to withhold from their paychecks.

Have the employee complete Ohio's IT 4 form (Employee's Withholding Exemption Certificate) to determine state income tax withholding. Ohio requires employers to withhold state income tax from employees' wages.

Create a form for employees to authorize direct deposit of their paychecks. While not required by Ohio law, this is a common practice. The form should include bank account and routing information and authorization language.

Create a form to collect emergency contact information. While not legally required, this is a best practice for workplace safety and emergency response.

If offering benefits, prepare enrollment forms for health insurance, retirement plans, and other benefits. Include information about eligibility, coverage options, costs, and enrollment deadlines. If health insurance is offered, provide required notices under ERISA and the Affordable Care Act.

Complete and submit the New Hire Reporting Form to the Ohio New Hire Reporting Center within 20 days of the employee's start date. This can be done online through the Ohio New Hire Reporting Center website. Include the employee's name, address, Social Security number, and date of hire, as well as your company name, address, and federal employer identification number (FEIN).

Display all required federal and Ohio-specific workplace posters in a conspicuous location. These include posters on minimum wage, fair employment, workers' compensation, unemployment insurance, and workplace safety. Ohio-specific posters can be obtained from the Ohio Department of Commerce and the Ohio Civil Rights Commission.

Provide orientation to familiarize the new employee with company policies, procedures, and culture. Review the employee handbook, safety procedures, and other important information. Document that the employee received and acknowledged all required policies and forms.

Ensure your payroll system is set up to properly calculate and withhold federal, state, and local taxes. Ohio has state income tax, and many municipalities also have local income taxes. Ensure compliance with Ohio's minimum wage requirements ($10.45/hour as of January 1, 2024, for non-tipped employees at businesses with gross receipts of $385,000 or more).