If your company has employees in Ohio, it’s important to be familiar with the Ohio employee separation process. Employer obligations and employee termination laws are often different, depending on the state.
This helpful employee separation checklist and guide will help you understand Ohio’s final paycheck requirements, separation notices, severance agreements, reporting employee termination, and withdrawing registration to do business in the state.
Ohio Employee Separation Checklist
- Provide final paycheck
- Issue separation notice
- Execute severance agreement
- Report termination
- Withdraw registration to do business
1. Final Paycheck Requirements in Ohio
Under Ohio law, employers have specific timelines to pay final wages. All employees must be paid on the next scheduled payday or within 15 days, whichever comes first. The final payment must include all guaranteed pay, reimbursements, and any accrued and unused vacation time—unless a written policy or contract states otherwise.
While Ohio law doesn’t specify the method of payment for final wages, it’s considered best practice to use the employee’s usual payment method. Employers who fail to pay on time may face penalties, including paying the greater of either 6 percent of the unpaid wages per day, or $200.
2. Firing Employees in Ohio
Because Ohio is an at-will employment state, firing employees is a simple endeavor. There is just one notice requirement: All employers who provide a group health insurance plan must notify involuntarily terminated employees of their right to continue coverage under Ohio’s state-level COBRA law. The notice must be provided at the time of termination, and include the amount of the monthly premium payment required for the employee to continue coverage.
3. Severance Agreements in Ohio
If you plan to execute severance agreements in Ohio, it’s important to ensure that they clearly list which state and federal claims your employee is releasing. Ohio allows employees to waive claims under the Ohio Civil Rights Act, Ohio’s leave laws, and Ohio’s minimum wage and overtime laws. Furthermore, make sure any release of claims only waives claims that arose before the agreement’s effective date—rather than those that may potentially arise later.
Don’t forget to look over any applicable federal laws and guidelines. Pay special attention to the NLRB’s 2023 McLaren decision suggesting a restriction in the use of non-disparagement and confidentiality provisions in severance agreements.
4. Reporting Employee Termination in Ohio
If you’re separating from an employee with an Income Withholding for Support Order (“IWO”), promptly report the employee’s termination to the child support agency, court, or attorney that issued the IWO. You can register for online reporting with the Federal Office of Child Support Enforcement here.
Similarly, employers may report an employee’s termination by completing the Notification of Employment Termination or Income Status section of the IWO. Then fax or mail it to the child support agency that issued it. You will need the following information:
- Employee Name
- Employee Case Identifier
- Last Known Home Address
- New Employer Address (if known)
- Date of Employee Separation
5. Withdraw Registration to do Business in Ohio
When you separate from your last Ohio employee, you may wish to formally withdraw your state business registration. The forms you’ll need to file with the Ohio Secretary of State depend on your company’s legal structure. For-Profit Corporations and Non-Profit Corporations should file this Certificate of Surrender, as well as a Certificate of Clearance from the Ohio Department of Taxation. This can be obtained via this form. Limited Liability Companies (LLCs), on the other hand, must file this Certificate of Cancellation.
Stay Compliant with Ohio Employee Separation Requirements
Knowing Ohio’s state Employee Separation Agreement requirements are key—they ensure you comply with state and federal regulations while recognizing employee rights.
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Looking for employee separation laws for a different state? Our interactive map makes it easy to find all employee termination requirements by state.
