Ohio Pay Transparency Laws: Requirements, Compliance, and Best Practices

Pay transparency laws are reshaping how businesses handle compensation, and Ohio businesses need to stay informed to remain compliant. These laws prioritize open communication about pay, encouraging fair practices and ensuring employees and job applicants understand how wages are determined.

For employers in Ohio, especially those managing remote or multi-location teams, understanding pay transparency requirements means navigating unique challenges. Compliance isn't just about following regulations—it's about fostering trust and creating equitable workplaces. Transparent pay practices can also influence employee satisfaction and retention in meaningful ways.

Ohio's approach to pay transparency differs from pay equity, though the two often overlap. Pay transparency focuses on sharing wage-related details, like salary ranges or pay stubs, while pay equity addresses fairness in compensation across demographics. Together, they promote fairness but require distinct actions from employers.

Ohio Pay Transparency Overview

Pay transparency involves openly sharing information about employee compensation, such as salary ranges, pay scales, or wage details, with workers or job applicants. The goal is to create openness around pay practices, reduce wage disparities, and help employees feel informed and valued.

Ohio employers, especially those with multi-location or remote teams, should prioritize pay transparency to strengthen trust and maintain compliance. Transparent compensation practices can improve workplace culture, reduce misunderstandings, and support fair hiring and retention efforts. For businesses operating across multiple jurisdictions, consistency in pay transparency policies is key to minimizing compliance risks.

Pay transparency and pay equity often go hand in hand, but they serve different purposes. Transparency deals with disclosure, while pay equity ensures fair compensation for employees regardless of gender, race, or other demographics. Both require attention to detail and a commitment to fair workplace practices.

Core Ohio State Requirements

Ohio enforces clear rules for wage disclosures and hiring practices that prohibit salary history inquiries. Employers must follow these policies to promote transparency and prevent bias in compensation decisions.

The Ohio Revised Code includes provisions to address wage discrimination. Employers are required to ensure equal pay for employees performing comparable work, regardless of gender or other protected characteristics. The law also mandates that final wages are paid promptly and accurately at the end of employment, leaving no room for miscalculations or delays.

The Pay Stub Protection Act outlines specific requirements for the content of employee pay stubs. Employers must include:

Gross earnings: Total wages before any deductions.
Net earnings: Final take-home pay after all deductions.
Itemized deductions: A detailed breakdown of taxes, benefits, and other withholdings.
Hours worked: Total hours, especially for hourly employees.

These details are non-negotiable and ensure employees have a clear understanding of their paychecks.

Cincinnati and Toledo Laws

Pay transparency requirements in Cincinnati and Toledo add another layer to statewide regulations. Businesses must comply with these laws if they meet specific criteria related to workforce size and location.

Cincinnati’s Ordinance No. 83 prohibits employers with 15 or more employees from asking job candidates about previous salaries. Additionally, employers must provide pay scale information upon request after the applicant completes their first interview. The ordinance applies to private employers and government contractors operating within the city.

Toledo enforces similar rules for employers with 15 or more employees. Asking about salary history is prohibited, and employers must disclose salary ranges upon request after an initial interview. These local laws apply to any business employing workers within city boundaries, even if the company operates primarily outside the city.

Employers in Cincinnati and Toledo must integrate these local requirements into their hiring processes to remain compliant.

Pay Stub Protection Act Compliance

Ohio's Pay Stub Protection Act took effect on April 9, 2025, and introduced specific requirements for every paycheck issued to employees. The law focuses on transparency, ensuring workers have access to clear and accurate details about their earnings. Employers must follow these rules carefully to avoid compliance issues.

Every pay stub must include several mandatory pieces of information:

Employer and employee names: Full legal names of both parties must be clearly stated.
Pay period dates: Include the start and end dates of the pay period covered by the paycheck.
Hours worked: Record the total number of hours worked, including any overtime hours.
Gross wages: Show the total earnings before any deductions are applied.
Deductions: Provide a detailed breakdown of all withholdings, such as taxes, benefit contributions, and garnishments.
Net wages: List the final amount paid after all deductions.

Employers are responsible for ensuring that each pay stub is complete and free of errors. Missing or inaccurate information can lead to compliance violations and employee complaints.

How to Handle Missing Pay Information

Ohio law gives employees the right to request any missing information from their pay stubs. Workers must submit these requests in writing, and employers are required to act quickly.

Once a written request is received, the employer has 10 calendar days to provide the missing details. This short response period underscores the importance of maintaining accurate payroll records and being prepared to address employee concerns promptly.

To stay compliant, employers should establish clear processes for handling these requests. Assign a specific team member or department to manage pay stub inquiries, ensure all payroll data is up to date, and respond to requests thoroughly within the required timeframe. Timely and accurate responses help maintain trust and prevent potential penalties.

Employer Penalties and Risks

Ohio pay transparency and pay equity laws carry enforceable penalties for non-compliance. Employers who neglect these requirements can face legal consequences, financial losses, and a damaged reputation. Staying compliant is not optional—it's a necessary step to avoid costly repercussions.

Penalties for Non-Compliance

Violating Ohio's pay transparency and equity regulations can lead to multiple penalties. Each violation is taken seriously, and enforcement agencies do not overlook recurring issues.

Written notices: Employers may receive formal notices detailing specific violations. These notices often require immediate corrective action to address the issue.
Fines: Monetary penalties apply to employers who fail to meet wage disclosure requirements or provide accurate pay stubs. These fines can range from hundreds to thousands of dollars per instance.
Civil liability: Employees can file legal claims for wage-related discrepancies. Employers held liable may need to pay back wages, damages, and legal fees.
Posting violations: Employers who do not display mandatory notices about pay transparency rights may incur additional fines and enforcement actions.

Non-compliance doesn't just result in fines—it sends a negative message to current and potential employees about how compensation is managed.

Risks of Ignoring Compliance

Employers who disregard Ohio pay transparency and pay equity laws face more than financial penalties. Ignoring these requirements can lead to:

Reputational damage: Non-compliance erodes trust among employees and job seekers, potentially harming the company's ability to attract and retain talent.
Legal disputes: Employees and applicants can file formal complaints or lawsuits, prompting investigations and expensive legal proceedings.
Operational setbacks: Investigations can divert time and resources away from daily operations, disrupting business continuity.

Failing to prioritize transparency can also create internal dissatisfaction, exacerbating turnover and lowering morale.

How Enforcement Works

Ohio's enforcement process begins when an employee, applicant, or third party files a complaint with a state agency. The Ohio Department of Job and Family Services or the Ohio Civil Rights Commission typically oversees investigations.

Complaint submission: Complaints must include specific details about the alleged non-compliance, such as missing pay stubs or inaccurate wage disclosures.
Employer response: Agencies may request records, policies, or interviews from the employer to verify compliance. Employers are expected to cooperate fully.
Investigation outcome: If the agency confirms violations, corrective orders, fines, or other penalties will follow. Repeat violations often result in escalating consequences.

Proactively addressing compliance issues and responding to complaints promptly can mitigate risks and demonstrate a commitment to fair practices.

How to Maintain Compliance

Ohio pay transparency and pay equity laws require a straightforward, organized approach to compliance. Employers hiring for roles in Ohio or targeting Ohio-based candidates must integrate clear and actionable practices into their hiring and payroll processes. Documenting salary ranges, conducting regular compensation reviews, and using reliable HR systems to manage pay data are key steps to staying compliant.

Job postings for Ohio-based positions should always include specific pay ranges. Clearly defining salary expectations not only aligns with state and local mandates but also demonstrates fairness and transparency to job seekers. This proactive approach minimizes compliance risks while fostering trust with potential hires.

Regular pay audits help identify gaps in compensation practices and ensure alignment with legal requirements. These reviews allow employers to address inconsistencies, adjust policies, and maintain equitable pay practices across all demographics. Scheduling audits annually or bi-annually ensures that wage structures remain consistent and compliant.

HR software solutions simplify the management of compliance tasks. These systems can track pay adjustments, organize employee compensation records, and update job postings with accurate salary ranges. Automating these responsibilities reduces errors and keeps your business prepared for audits or legal changes.

Step-by-Step Internal Checklist

Follow these steps to maintain compliance with Ohio pay transparency and pay equity laws:

Pinpoint applicable local laws.
Determine if Cincinnati or Toledo ordinances apply based on your business locations. Review specific requirements such as salary history bans and pay range disclosures. Understand employee thresholds for each ordinance to confirm which laws impact your organization.
Develop clear pay ranges.
Create transparent and standardized compensation structures for each role. Use market research, internal benchmarks, and pay equity reviews to ensure ranges reflect fair compensation. Store these ranges in a centralized, easily accessible location for consistency.
Train hiring staff.
Provide training sessions for managers and recruiters on compliance requirements. Cover topics like salary history bans, pay range disclosures, and proper interview practices. Ensure hiring personnel understand how to legally communicate pay information to candidates.
Revise job postings.
Update job descriptions to include accurate pay ranges for all Ohio-based positions. Use consistent language that reflects your company's compensation policies. Add disclaimers if pay varies by experience or geographic location.
Stay informed on legal changes.
Monitor state and local amendments to pay transparency and pay equity laws. Assign a team member to track updates and implement necessary policy changes. Regularly review compliance resources to stay ahead of new requirements.

By adhering to these steps, businesses can align with Ohio pay transparency and pay equity laws while maintaining fair and transparent compensation practices.

Pay Equity vs Pay Transparency

Pay equity and pay transparency address different, yet complementary, workplace goals. Pay equity ensures employees receive equal compensation for performing work of equal value, regardless of gender, race, or other protected characteristics. Pay transparency focuses on openly sharing pay-related information, such as salary ranges or earnings details, with employees and job applicants.

Both practices are necessary to foster fairness in compensation practices. Pay equity prevents discriminatory pay gaps, while transparency holds employers accountable by making compensation structures visible. For Ohio employers, implementing both creates a more equitable workplace and reduces risks of wage discrimination claims.

Ohio’s anti-discrimination laws directly support pay equity by requiring fair pay practices. Employers must evaluate compensation data to confirm that employees performing comparable work under similar conditions are paid equitably. Failing to address disparities could result in legal and reputational consequences.

Pay transparency laws encourage openness by requiring employers to disclose pay ranges or provide detailed pay stubs. This level of openness helps employees and candidates understand how their pay is determined and highlights any gaps in equity. Transparency also builds trust, as employees feel more confident that compensation decisions are fair and objective.

When employers prioritize both pay equity and transparency, they create a workplace where fairness is measurable and actionable. Pay equity ensures fairness exists, while transparency ensures fairness is visible. Together, these practices strengthen compliance, improve employee satisfaction, and build trust across the organization.

FAQs for Ohio Pay Transparency

Ohio's pay transparency framework includes both statewide and local requirements that employers must understand to stay compliant. Below, you'll find clear answers to common questions about Ohio pay transparency and pay equity laws.

Does Ohio have pay transparency laws?

Ohio enforces specific pay transparency measures through local ordinances in Cincinnati and Toledo, as well as the statewide Pay Stub Protection Act.

Cincinnati and Toledo ordinances: Employers with 15 or more employees in these cities must adhere to local requirements. This includes prohibiting salary history inquiries during the hiring process and disclosing pay ranges to candidates after an initial interview.
Pay Stub Protection Act: Since April 9, 2025, all Ohio employers must include detailed information on employee pay stubs. This includes gross wages, net wages, hours worked, and itemized deductions to ensure employees have a clear breakdown of their earnings.

Employers operating across Ohio should carefully evaluate which regulations apply to their business based on location and workforce size.

What is the pay equity law in Ohio?

Ohio law protects employees from wage discrimination by requiring equal pay for comparable work, regardless of gender or other protected characteristics. These protections are outlined in the Ohio Revised Code and aim to ensure fairness in compensation practices.

Local ordinances in cities like Cincinnati and Toledo build on these protections with additional requirements that promote transparency and accountability, particularly during hiring. Employers in these areas must comply with both local and statewide regulations to align with pay equity standards.

What is the difference between pay equity and pay transparency?

Pay equity and pay transparency serve different purposes within compensation practices.

Pay equity: Focuses on ensuring fairness in wages by addressing any disparities based on factors like gender, race, or ethnicity.
Pay transparency: Relates to the disclosure of compensation details, such as pay ranges in job postings or detailed wage breakdowns on pay stubs.

Together, these practices create a more open and equitable workplace. While pay equity ensures fairness in earnings, pay transparency provides visibility into how compensation decisions are made.

What is the final pay law in Ohio?

Ohio requires employers to issue final paychecks by the next scheduled payday following an employee's departure. This includes any earned wages, such as overtime or commissions, and must be paid in full without delay.

Employers must ensure final paychecks are accurate, itemized, and delivered within the statutory timeframe. For businesses in cities like Cincinnati or Toledo, additional local requirements may apply. Failing to meet these obligations could result in legal penalties or employee complaints filed with state agencies.

Best Practices for Long-Term Success

Pay transparency and pay equity laws in Ohio require more than compliance—they demand consistency and attention to detail. Employers need to build habits and systems that ensure long-term success, even as regulations change.

Prioritize Training and Consistent Policy Updates

Training isn't a one-time event. Employers must regularly educate HR professionals, managers, and recruiters on the latest compliance standards. This includes salary history bans, pay range disclosure requirements, and correct pay stub formatting.

Document every policy change clearly and update written materials promptly. Employee handbooks, internal guidelines, and onboarding resources should always reflect current laws. Conduct annual reviews of your pay practices to confirm compliance and identify any gaps before they create issues.

Create Transparent Internal Communication Channels

Employees should never have to guess how their pay is determined. Employers must establish clear communication practices about compensation policies. Start by explaining pay structures during onboarding, including how pay ranges are calculated and what to expect on pay stubs.

Provide employees with a defined process for raising pay-related concerns or requesting corrections. Train managers to handle compensation discussions with clarity and consistency, avoiding personal opinions or financial advice. Regular communication about pay ensures transparency and builds trust.

Implement Payroll Software to Simplify Compliance

Modern payroll systems can transform how employers manage compliance tasks. These platforms allow employers to:

Automatically generate pay stubs with all legally required details, such as hours worked, gross wages, and deductions.
Track key deadlines, like the timeline for responding to employee pay stub inquiries.
Store pay records securely and reduce the risk of misplaced or incomplete documentation.

A reliable payroll system reduces manual errors and keeps pay processes organized. Employees benefit from easy access to their pay information, while employers can ensure all compliance requirements are met without delays.

Navigating Ohio's pay transparency and pay equity landscape requires a proactive, organized approach. By prioritizing compliance, fostering open communication, and leveraging modern HR tools, you can create a workplace where fairness thrives. If you're ready to simplify your pay practices and maintain compliance, book a demo with GoCo today to see how our platform can support your success.