According to a statement, city leaders began researching "smoke free workplaces" in 2012, with a goal of implementing it in five years, WKEF reports.
But not every resident is happy about the new policy.
"We're breathing free air out here and we ought to be able to do whatever we want to outside," Dayton resident Melissa Rivers said."Whether we're city workers or not, we're people."
The city said the policy will only affect new hires and not existing employees.
WATCH: CVS investing $10 million to fight e-cigarette use among teens
The new policy is expected to lower the city's health costs.
The city of Dayton said it has a history of encouraging a healthy lifestyle for its employees and is the first municipality in the state to open an off-site health and wellness center for its nearly 200 employees and families.