Revisiting Minimum Wage Obligations in Ohio Agriculture

Federal lawmakers have once again sparked debate over increasing the federal minimum wage, which has remained at $7.25 per hour since 2009. While many farmworkers are exempt from the federal minimum wage under the Fair Labor Standards Act (“FLSA”), a potential increase could still create significant ripple effects throughout the agricultural sector.

Earlier this month, Senators Josh Hawley (R-Mo.) and Peter Welch (D-Vt.) introduced the Higher Wages for American Workers Act, a bipartisan proposal that would raise the federal minimum wage to $15 per hour and index future increases to inflation.

Although agricultural employers in Ohio are generally exempt from federal minimum wage requirements, the reemergence of federal wage legislation presents a timely opportunity to revisit those exemptions and clarify what minimum wage obligations may apply to farm employers under both federal and state law.

Federal Agricultural Exemptions
Under the FLSA, agricultural employers are not required to pay the federal minimum wage to certain employees if one or more of the following conditions apply:

1. Small Farm Exemption: The employer did not use more than 500 man-days of agricultural labor in any calendar quarter of the previous year.
2. Family Member Exemption: The employee is the parent, spouse, child, or another immediate family member of the employer.
3. Hand-Harvest Laborer Exemption: The employee:
   • is employed as a hand-harvest laborer,
   • is paid on a piece-rate basis,
   • commutes daily from their permanent residence, and
   • was employed in agriculture for fewer than 13 weeks during the previous calendar year.
4. Youth Hand-Harvest Exemption: The employee is:
   • 16 years old or younger,
   • employed as a hand-harvest laborer,
   • paid on a piece-rate basis,
   • working on the same farm as their parent or legal guardian, and
   • receiving the same piece-rate wage as employees over age 16.
5. Range Production Exemption: The employee is engaged in the range production of livestock.

Understanding the 500 Man-Days Threshold
The “man-day” exemption is intended to relieve small or family-operated farms from federal minimum wage requirements. A “man-day” is any day in which an employee performs at least one hour of agricultural labor. The total number of hours worked is irrelevant, working just one hour still constitutes a full man-day.

To determine whether an employer meets the exemption, all workers across all operations owned or managed by the same farmer must be included in the calculation. For example, if one employee works a single hour on Monday and two others work an hour each on Tuesday, the farm accumulates three man-days across those two days. The FLSA sets the threshold at 500 man-days per calendar quarter, which is roughly equal to employing seven employees for five days a week over a 13-week quarter. Importantly, all categories of labor—full-time, part-time, seasonal, and temporary—count toward the total.

Family Member Exemption Clarified
Agricultural employers are not required to pay the federal minimum wage to certain immediate family members engaged in agricultural labor. The Department of Labor defines "immediate family" for this purpose to include parents, spouses, children, stepchildren, stepparents, foster children, and foster parents.

However, more distant relatives, such as siblings, cousins, nieces, nephews, and in-laws—do not qualify for the exemption, even if they live in the same household. These individuals must be treated as regular employees and may be subject to minimum wage and hour requirements.

State Minimum Wage Considerations
In addition to federal law, employers must comply with state wage laws. When state and federal minimum wage laws conflict, employers must follow the law that is more protective of the employee, typically, the law with the higher minimum wage.

In Ohio, the state minimum wage is higher than the federal rate, and most employers are required to pay the state minimum. However, Ohio law includes exemptions that mirror federal law and allows certain agricultural employers to pay less than the state minimum wage if they qualify under those exemptions.

This alignment between state and federal law means that many Ohio farm employers remain exempt from both wage requirements—especially small farms and family-run operations. But this is not the case in all states. For example, California and Washington require that all agricultural workers be paid the state minimum wage, regardless of whether they qualify for a federal exemption.

Who is Considered an Agricultural Employee?
Both federal and Ohio law define “agriculture” broadly to include a wide range of farming activities. The legal definition encompasses the cultivation and tillage of soil, dairying, growing and harvesting of agricultural or horticultural commodities, and the raising of livestock, bees, fur-bearing animals, or poultry. It also includes related tasks performed by a farmer or on a farm in connection with these activities, such as preparing goods for market or transporting them to storage or distribution.

This definition divides agricultural work into two main categories:

• Primary agriculture, which includes traditional farming activities like planting, growing, and harvesting crops or raising livestock.
• Secondary agriculture, which covers work that supports or is incidental to primary agriculture—for example, servicing equipment used on the farm or applying pesticides via aircraft.

Employees engaged in either primary or secondary agricultural activities are generally classified as agricultural employees and may fall within the FLSA exemptions described above.

Agritourism and Value-Added Activities: A Different Category
Classification becomes more complicated when farm operations expand beyond traditional agriculture by engaging in agritourism or producing value-added products.

Employees who work in agritourism, such as operating a corn maze, staffing a farm store, managing event rentals, or leading educational tours, are typically not considered agricultural employees under federal or Ohio law. Because their work is commercial or recreational rather than agricultural in nature, they do not qualify for agricultural labor exemptions and are therefore entitled to full wage and hour protections, including minimum wage and overtime.

Similarly, employees involved in processing agricultural products may also fall outside the scope of the agricultural exemption, depending on the nature and extent of the processing. These workers may be treated as employees in a manufacturing or commercial enterprise and must be compensated accordingly.

Conclusion. 
While federal and Ohio laws provide specific exemptions from minimum wage requirements for agricultural employers, the application of these exemptions depends on several nuanced factors—including the nature of the work performed, the size and structure of the farming operation, and the relationship between the employer and employee. As farms continue to diversify through agritourism and value-added ventures, employers must be mindful that not all workers will qualify for agricultural exemptions. Understanding the distinction between agricultural and non-agricultural labor is essential to ensuring compliance with both federal and state wage laws and avoiding potential liability. As legislative efforts to raise the federal minimum wage continue, now is an opportune time for agricultural employers to review their labor practices and clarify their wage obligations under the law.