How do you calculate hourly rate for exempt employees?

To calculate the hourly rate for a salaried employee, divide the yearly salary by 52. For example, divide an annual salary of $37,440 by 52, which equals a weekly pay amount of $720. When the employee normally works 40 hours per week, divide the weekly pay of $720 by 40 to calculate the hourly rate.

How much do exempt employees get paid per hour?

Overtime applies to any hours worked beyond 40 hours each week, and should be paid at a rate of one and a half times their hourly rate. Non-exempt employees are typically also entitled to the federal minimum wage of $7.25 an hour. They can be paid a salary or hourly wage.

Who are exempt from the wage and Hour Act?

According to the Department of Labor’s Wage and Hour Division, companies such as Starbucks, Pacific Bell, Radio Shack, United Parcel Service and Rite Aide have been sued by exempt employees who believe they should have been classified as non-exempt and eligible for overtime pay. The original intent of FLSA was to protect nearly all workers.

Can an hourly employee be exempt from overtime?

Learn More →. The federal Fair Labor Standards Act states that employees can’t work more than a 40-hour week without getting time-and-a-half for overtime. Some employees are exempt from the law; they can work 45, 50 or 60 hours a week without any right to time-and-a-half.

How much do exempt computer employees get paid?

These salary requirements do not apply to outside sales employees, teachers, and employees practicing law or medicine. Exempt computer employees may be paid at least $684 * on a salary basis or on an hourly basis at a rate not less than $27.63 an hour.

What is the salary requirement for exempt?

To be considered exempt, you have to make at least $455 per week ($23,600/year), receive a salary, and perform particular duties as defined by FLSA . In addition, some states have enacted overtime laws.

What are exempt and non exempt employees?

In the United States, under the Fair Labor Standards Act, employees are categorized as exempt and non-exempt employees. Typically, exempt employees work as executives or managers. Non-exempt employees are typically laborers, and considered to be blue-collar workers.

What are the rules for paying hourly employees?

Employers are not required to pay hourly employees for time not worked, and there is no minimum number of hours a week that an hourly worker must work. All workers in the United States, both hourly and salaried, must be paid at least the minimum wage (currently $7.25 per hour), for all hours worked.

Are all salaried employees exempt?

All exempt employees are salaried; however, all salaried employees aren’t exempt. There’s yet another classification of salaried employees who do receive overtime pay. These are salaried, non-exempt workers who are paid a fixed rate for an agreed-upon number of hours each week.