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Hourly Wage
Definition
Hourly wage is the rate of pay per hour of work, used for non-exempt employees who are entitled to overtime pay.
Explanation
Minimum wage laws set the legal minimum hourly wage at federal and state levels, currently $7.25 federally with many states setting higher minimums. Hourly workers must track time using timesheets or punch clocks, and are entitled to overtime for hours over 40 per week.
Converting hourly wage to annual salary: multiply by 2,080 hours (full-time). Adjustments should be made for unpaid time off.
Example
A $15/hour full-time job yields approximately $31,200 per year before deductions, which is above the federal poverty line for a single person.