Prevailing Wage Ohio: Navigate Thresholds and County Variations

Last Updated: October 2025

Ohio's prevailing wage laws have been protecting workers and ensuring fair competition on public construction projects since 1931. As one of the 32 states with prevailing wage requirements, Ohio maintains a comprehensive system that ensures contractors pay fair wages while maintaining competitive bidding for publicly funded projects.

What makes Ohio unique is its dual threshold system—one set of requirements for building construction and another for horizontal and road construction projects. Understanding these distinctions, along with Ohio's county-by-county rate variations and detailed reporting requirements, is essential for contractors working on public improvement projects throughout the state.

Not working in Ohio? Check out our state-by-state guide to prevailing wage for detailed information on California, New York, New Jersey, Washington, and Illinois.

Prevailing wage in Ohio refers to the minimum hourly wage plus fringe benefits that must be paid to workers on qualifying public improvement projects. These rates are established to protect local wage standards and prevent unfair competition from contractors who might attempt to win bids by paying substandard wages.

Ohio's prevailing wage law is codified in Ohio Revised Code Chapter 4115, which was first enacted in 1931 during the Great Depression. The law is administered by the Ohio Department of Commerce, Division of Industrial Compliance, Bureau of Wage & Hour Administration, which is responsible for setting rates, enforcing compliance, and investigating violations.

The fundamental purpose of Ohio's prevailing wage law is twofold: to ensure workers receive fair compensation for their labor on public projects and to create a level playing field for contractors bidding on government work. By establishing standardized wage rates based on local market conditions, the law prevents out-of-state contractors from underbidding local firms by paying artificially low wages.

It's important to understand the distinction between Ohio's state prevailing wage law and the federal Davis-Bacon Act. Ohio's prevailing wage requirements apply to state and local public projects funded by Ohio taxpayers or local government entities. The federal Davis-Bacon Act, on the other hand, applies to projects that receive federal funding or federal assistance exceeding $2,000.

Some projects may trigger both Ohio and federal prevailing wage requirements, particularly those with mixed funding sources. In these cases, contractors must comply with both sets of regulations and typically must pay the higher of the two applicable rates when they differ. The rate-setting authorities also differ, Ohio rates are determined by the Ohio Department of Commerce based on local collective bargaining agreements, while federal rates are set by the U.S. Department of Labor based on wage surveys.

Under Ohio law, a public improvement is any project financed wholly or partially by public funds. This broad definition includes construction, reconstruction, enlargement, alteration, repair, remodeling, renovation, and painting of publicly funded facilities and infrastructure.

Public improvements cover a wide range of project types, from buildings like schools, libraries, and government offices to infrastructure such as roads, streets, alleys, sewers, ditches, bridges, and related public works. The key distinction that contractors must understand is between building construction projects and horizontal or road construction projects, as Ohio establishes different prevailing wage thresholds for each category.

Ohio's dual threshold system is one of the most distinctive features of the state's prevailing wage law. Unlike many states that apply a single threshold across all project types, Ohio recognizes that building construction and horizontal infrastructure work have different cost structures and applies separate thresholds accordingly.

Building Construction Thresholds

For building construction projects, Ohio prevailing wage laws apply when the total project cost exceeds $250,000 for new construction or $75,000 for reconstruction, alteration, repair, remodeling, renovation, or painting work. These thresholds apply to projects involving structures such as schools, government buildings, hospitals, libraries, and other publicly funded facilities.

Horizontal/Road Construction Thresholds

Road and infrastructure projects follow a different threshold structure. Ohio prevailing wage requirements are triggered when horizontal construction exceeds $93,292 for new road construction or $27,950 for reconstruction, alteration, or repair work. These thresholds apply to projects involving roads, streets, alleys, sewers, ditches, bridges, and other works connected to road or bridge construction.

Threshold Adjustments

These threshold amounts are not static. Ohio law requires the Ohio Department of Commerce Administrator to adjust them biennially based on the U.S. Department of Commerce Construction Price Deflator. This ensures thresholds keep pace with inflation and changing construction costs. However, the law caps annual increases or decreases at 3% to prevent dramatic fluctuations that could disrupt project planning.

Because these amounts change regularly with inflation adjustments, contractors must always verify current threshold amounts directly with the Ohio Department of Commerce Bureau of Wage & Hour Administration before bidding on any public works project. Relying on outdated threshold information could result in costly compliance failures or missed bidding opportunities.

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How Ohio Prevailing Wage Rates Are Determined

County-by-County Rate Setting

One of the most important aspects of Ohio's prevailing wage system is that rates vary significantly by location. Rates are determined on a county-by-county basis, meaning a carpenter in Cuyahoga County may have a different prevailing wage rate than a carpenter in Franklin County. Rates also vary by trade or craft and by specific job classification within each trade.

Ohio's prevailing wage rates are based on local union collective bargaining agreements (CBAs). When unions negotiate wages and benefits with employers in a particular county, those negotiated rates form the basis for prevailing wage determinations in that area. This approach ensures that prevailing wages reflect actual local labor market conditions rather than arbitrary governmental standards.

The Ohio Department of Commerce is responsible for collecting CBA information from labor organizations and publishing the applicable rates for each county and trade classification. Rates also differ between journeymen—fully trained, experienced workers—and apprentices, who are paid a percentage of the journeyman rate based on their level of program completion.

Rate Components

Understanding how prevailing wage rates are structured is crucial for accurate payroll management and reporting. Each prevailing wage rate consists of two primary components:

The basic hourly rate is the base wage that must be paid for each hour worked in a specific classification. This is the amount that appears on a worker's paycheck as regular hourly pay.

Fringe benefits include additional compensation beyond the base wage, such as health insurance, pension or retirement contributions, vacation pay, and training fund contributions. The fringe benefit amount represents the hourly value of these benefits.

The total hourly rate combines the basic hourly wage and fringe benefits. Contractors have flexibility in how they provide fringe benefits—they can either provide the actual benefits (health insurance, pension contributions, etc.) or pay the fringe benefit amount in cash directly to workers. Many contractors find it simpler to pay fringe benefits in cash rather than administering multiple benefit programs, though this approach may have tax implications for workers.

Overtime and Premium Pay

Ohio prevailing wage law has specific requirements for overtime compensation. When workers exceed 40 hours in a workweek, contractors must pay overtime at time-and-a-half the basic hourly rate. However, fringe benefits are paid at the straight-time rate for all hours worked, including overtime hours. This means a worker earning $30 per hour base wage plus $15 per hour in fringes would receive $45 per hour for regular time and $60 per hour for overtime ($45 base at time-and-a-half plus $15 straight-time fringes).

Where to Find Current Rates

Contractors can access current prevailing wage rates through the Ohio Department of Commerce, Bureau of Wage & Hour Administration website. The bureau maintains county-specific rate schedules that list all applicable trades and classifications. These rates are updated when labor organizations file new collective bargaining agreements with the department.

When a union files a new or revised CBA, the new rates become effective two weeks after the Ohio Department of Commerce receives the agreement. This two-week period provides contractors with advance notice of rate changes, though it also means contractors must stay vigilant about checking for updates. For bidding purposes, contractors must use the prevailing wage rates in effect at the time of bid submission or contract award, depending on the specific requirements of the awarding agency.

One of Ohio's unique features is the Prevailing Wage Coordinator system, which creates a dedicated point of contact for prevailing wage compliance on each public project.

Role of the Prevailing Wage Coordinator

Ohio law requires each public authority to appoint a Prevailing Wage Coordinator for every project subject to prevailing wage requirements. Importantly, this coordinator must be a local government employee—contractors cannot serve in this role. The Prevailing Wage Coordinator is responsible for handling all prevailing wage compliance matters for the project, including auditing certified payroll reports, interfacing between contractors and the Ohio Department of Commerce, and ensuring all documentation requirements are met.

The coordinator serves as the central hub for all prevailing wage documentation and communication. All certified payroll reports flow through the coordinator, who reviews them for accuracy and completeness. The coordinator also responds to contractor questions, addresses discrepancies, and maintains records for the duration of the project and the required retention period.

Contractor Responsibilities to the Coordinator

Contractors have several key responsibilities related to the Prevailing Wage Coordinator. At the project's start, contractors must submit a payroll dates schedule showing when the company pays wages to workers throughout the project. This helps the coordinator anticipate when certified payroll reports should be submitted.

Contractors must also provide a comprehensive list of all subcontractors working on the project, including names, addresses, and contact information. This ensures the coordinator can track compliance across all tiers of the project.

Throughout the project, contractors submit weekly or monthly certified payroll reports to the coordinator, depending on project duration. Finally, before receiving final payment, each contractor and subcontractor must submit a notarized Affidavit of Compliance certifying that all prevailing wages have been paid correctly. The coordinator reviews and approves these affidavits before the public authority releases final payment.

Certified payroll reporting is the mechanism through which Ohio verifies that contractors are paying prevailing wages correctly. Understanding reporting requirements and deadlines is crucial for compliance.

Reporting Frequency

The first certified payroll report must be submitted within two weeks of project commencement. After that, reporting frequency depends on project duration. For projects expected to last four months or less, contractors must submit certified payroll reports weekly. For projects extending beyond four months, monthly reporting is permitted. All certified payroll reports flow through the general contractor to the Prevailing Wage Coordinator, subcontractors submit their reports to the general contractor, who compiles and forwards all reports to the coordinator.

Initial Project Documentation

Before beginning work, contractors must complete several initial documentation requirements. The Payroll Dates Form notifies the Prevailing Wage Coordinator of the company's payroll schedule throughout the project. The Subcontractor List provides names, addresses, and contact information for all subcontractors working on the project.

Each employee must receive and sign an Employee Notification form before starting work, acknowledging their job classification, prevailing wage rate, fringe benefit amounts, and the name of the Prevailing Wage Coordinator. Contractors must submit copies of these signed notifications to the coordinator. Additionally, contractors must post current Prevailing Wage Rate schedules at the job site where they are accessible to all workers.

Ohio Certified Payroll Report

The Ohio Certified Payroll Report is the primary form for documenting prevailing wage compliance. It requires comprehensive information including employee details (full name, address, Social Security number, and classification), daily hours worked broken down by day with weekly totals, the base hourly rate and fringe benefit rate being paid, gross earnings and all deductions taken from pay, and total hours and gross earnings for all jobs, both prevailing wage and non-prevailing wage work.

Affidavit of Compliance

The Affidavit of Compliance is the final documentation required before a contractor can receive final payment. Each contractor and subcontractor must complete this notarized affidavit certifying that all prevailing wages have been paid correctly and in full compliance with Ohio Revised Code Chapter 4115. The affidavit must be sworn and signed by the officer or agent of the contractor who supervises payment of employees. The public authority cannot release final payment or surety bonds until all required affidavits have been submitted and approved.

Record Retention

Ohio law requires contractors to maintain all payroll records for at least three years after project completion. Required records include time cards showing daily hours worked by each employee, payroll registers documenting all wage payments, and fringe benefit documentation proving benefits were provided or cash equivalents paid. These records must be made available for inspection by the Ohio Department of Commerce upon request. General contractors are responsible for maintaining not only their own records but also ensuring subcontractors maintain proper records and make them available when needed.

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Violations and Penalties - Understanding the Consequences

Ohio takes prevailing wage compliance seriously, and the penalties for violations can be severe. Understanding common violations and their consequences is essential for maintaining compliance and avoiding costly penalties.

Common Violations

The most frequent prevailing wage violations in Ohio include failure to pay the correct prevailing wage rate for a worker's actual classification, misclassification of workers into lower-paid job categories to reduce wage costs, and failure to provide required fringe benefits either as actual benefits or cash equivalents. Administrative violations are also common, such as late or missing certified payroll reports, improper apprentice-to-journeyman ratios, and misclassifying employees as independent contractors to avoid prevailing wage obligations.

Penalty Structure

Ohio's penalty structure is designed to make violations costly enough to deter non-compliance. When a contractor underpays workers, they must first pay the difference between what was paid and what should have been paid. On top of the back wages owed, Ohio assesses an additional penalty of 100% of the underpaid wages, effectively doubling the back pay obligation.

In employee-initiated lawsuits, the penalty structure is slightly different. The underpaid employee may recover a 25% penalty on top of the owed wages, while an additional 75% penalty is paid to the Director of the Ohio Department of Commerce. These penalties are mandatory upon determination of a violation—Ohio courts have clarified that enforcement officials do not have discretion to waive penalties for violations.

Intentional Violations

Ohio law distinguishes between inadvertent errors and intentional violations. An intentional violation is defined as "a willful, knowing, or deliberate disregard for" any provision of the prevailing wage law. Intentional violations include intentional failure to submit required payroll reports or knowingly submitting false or erroneous reports, intentional misclassification of employees for the purpose of reducing wages, misclassifying employees as independent contractors or improperly classifying them as apprentices, and failure to comply with required apprentice-to-journeyman ratios.

Contractors found to have committed intentional violations face debarment—they are prohibited from contracting directly or indirectly with any public authority for the construction of public improvements. This effectively bars them from all public works in Ohio, which can be devastating for contractors who rely heavily on public sector work.

Enforcement Process

Anyone can file a prevailing wage complaint in Ohio, workers, competing contractors, labor unions, or members of the public. Complaints are filed with the Ohio Department of Commerce Bureau of Wage & Hour Administration, which investigates allegations and determines whether violations occurred. Upon determination of a violation, the bureau assesses appropriate penalties. Contractors have the right to appeal enforcement actions through the Ohio Department of Commerce's appeals process.

Ohio's prevailing wage law includes specific requirements for the employment of apprentices on public works projects, ensuring that public construction contributes to workforce development.

Ohio Apprenticeship Standards

All apprentices working on prevailing wage projects in Ohio must be registered with the U.S. Department of Labor Bureau of Apprenticeship and Training. This registration ensures apprentices are in legitimate training programs rather than being misclassified to reduce labor costs.

Apprentices are paid a percentage of the journeyman prevailing wage rate corresponding to their level of program completion. For example, a first-year apprentice might earn 40% of the journeyman rate, while a fourth-year apprentice nearing completion might earn 85% of the journeyman rate. These percentages are established by Ohio Department of Commerce regulations and vary by trade.

Ohio also establishes specific apprentice-to-journeyman ratios that contractors must maintain. These ratios ensure that apprentices receive adequate supervision and training while preventing contractors from loading projects with lower-paid apprentices at the expense of experienced journeymen.

Safe Harbor Provision

Ohio law includes a limited "safe harbor" provision that recognizes minor, inadvertent violations of apprentice ratios. Contractors who exceed the permissible apprentice-to-journeyman ratio by two or fewer apprentices for no more than two days in any 30-day period are not subject to enforcement action for this violation. However, contractors remain liable for paying all wages correctly—the safe harbor only protects against penalties for the ratio violation itself, not for any wage underpayments. This provision acknowledges that workforce fluctuations can temporarily affect ratios without representing an intentional attempt to violate the law.

Successful prevailing wage compliance requires attention to detail throughout the project lifecycle, from pre-bid planning through final documentation.

Pre-Bid Phase Best Practices

Before bidding on any public project, contractors should verify that the project meets or exceeds prevailing wage thresholds and determine whether prevailing wage will apply. Obtain the correct county-specific rate schedules from the Ohio Department of Commerce for all trades that will be employed on the project. When preparing bids, budget not only for prevailing wages and fringe benefits but also for the administrative costs of compliance, including staff time for payroll reporting and record-keeping. Many contractors underestimate the administrative burden of prevailing wage compliance and find themselves losing money on projects when these costs aren't properly factored into bids.

Throughout the project, maintain accurate daily time records for each worker, clearly documenting their classification and hours worked. This daily documentation is essential for preparing accurate certified payroll reports. Track prevailing wage and non-prevailing wage hours separately, as certified payroll reports require both totals. Submit all reports on time according to the weekly or monthly schedule required for your project—late reports can delay payments and trigger penalties.

Coordinate closely with all subcontractors to ensure they understand prevailing wage requirements and are submitting their certified payroll reports on time. Many compliance failures occur at the subcontractor level, but general contractors bear ultimate responsibility. Respond promptly to any questions or requests from the Prevailing Wage Coordinator—delays in addressing coordinator concerns can hold up the entire project.

Once work is complete, ensure you complete and submit the final Affidavit of Compliance in a timely manner. Verify that all subcontractors have also submitted their affidavits—you cannot receive final payment until all affidavits are in place. Retain all payroll records, time cards, and documentation for the required three-year minimum retention period. If the coordinator or Ohio Department of Commerce identifies any discrepancies during final review, address them immediately to avoid delays in final payment or potential penalties.

Compliance Technology Solutions

Given the complexity of Ohio's prevailing wage requirements, with county-by-county rate variations, dual threshold systems, detailed reporting requirements, and strict deadlines, many contractors find that specialized compliance software significantly reduces administrative burden and compliance risk. Solutions like Certified Payroll Reporting offer automated rate tracking for all Ohio counties, ensuring you're always using current rates; streamlined certified payroll report generation that reduces data entry time and errors; centralized record-keeping that satisfies the three-year retention requirement; and integration with existing time tracking and payroll systems to eliminate duplicate data entry.