Hourly Wage
Quick Answer
Hourly wage is the rate of pay per hour of work, used for non-exempt employees who are entitled to overtime pay.
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.
Frequently Asked Questions
What is Hourly Wage?
Hourly wage is the rate of pay per hour of work, used for non-exempt employees who are entitled to overtime pay.
How does Hourly Wage work?
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.
Can you give an example of Hourly Wage?
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.
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