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Oct19

Salary Non-Exempt employee overtime

Compensation
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If a salary nonexempt employee works overtime, how is his overtime figured?

A salaried employee may be either exempt, or non-exempt — as you know. Exempt employees are never entitled to overtime.

However, a salaried employee who is non-exempt is basically an hourly employee. If the employee works more than 40 hours in the week, he or she must be paid overtime at 1.5 times the employees average hourly rate. Suppose Jane normally works 40 hours per week and is paid a salary of $400 per week. Jane averages $10 per hour. If she works 44 hours one week, she is entitled to 4 hours of overtime at $15 per hour, so her salary for the week is $460.

Note that if Jane works 35 hour one week, her employer can legitimately prorate her salary, paying her only $350 for the week.

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This entry was posted on Monday, October 19th, 2009 at 11:13 am and is filed under
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