Overview. On December 19, 2016, Ohio Gov. John Kasich signed a bill (SB 331) (a copy of which is attached to this Alert) blocking local governments from raising the minimum wage above the level set by the state, and from passing ordinances in relation to employee “fringe benefits.” It has been clarified that “fringe benefits” includes retirements benefits, leave of absence, vacation, separation, sick or holiday pay.
Effective Date. March 20, 2017
Details. The “Title” of SB 331 confusingly addresses the “regulation of pet stores.” It is, however, clear that the Bill intends to do more than just that. In fact, the preamble states that, among other things, the Bill “prohibit[s] political subdivisions from establishing minimum wage rates different from the rate required by state law; to generally grant private employers exclusive authority to establish policies concerning hours and location of work, scheduling, and fringe benefits, unless an exception applies....” In addition, the Bill reflects:
By enacting section 4113.85 of the Revised Code, it is the intent of the General Assembly to exclusively regulate the hours of labor and fringe benefits arising from the employer employee relationship.
Call to Action. No action is required on the part of employers. In fact, this bill means that employers in Ohio will only need to be concerned with the state-wide paid sick leave law.