If you work overtime and are a salaried employee, you may have the right to receive overtime pay. Moore & Associates is an unpaid overtime law firm in Houston, Texas that assists workers who are seeking unpaid overtime pay, whether they are salaried or hourly workers. Some workers may believe that because they are paid a salary, they are not entitled to receive overtime pay. However, this is not always true. While some salaried workers are exempt from receiving overtime pay, not all salaried workers are exempt. If you are on a salary, and are asked to put in more than a 40 hour workweek, you might be entitled to receive overtime pay for your overtime work. How can you calculate your hourly salary and how can you determine if you are exempt or entitled to overtime pay? Read on.
Overtime pay is calculated as time and a half your regularly hourly rate. So, if a worker typically makes $10 per hour, the same worker would be entitled to receive $15 per hour for every overtime hour worked. But, how is your hourly rate determined if you are a salaried worker? You may not have calculated your hourly rate of pay.
The easiest method to calculate your hourly rate if you are a salaried worker, take your yearly salary and divide it by 52 weeks in the year. Then, divide that number by 40 (for the number of hours in a standard workweek). This should give you your hourly salary. If a worker works fewer than 40 hours a week on a regular basis, to calculate the hourly rate, the employer should divide the weekly rate by the number of hours the employee typically works.
However, if an employee typically works more than 40 hours a week, the employer must first divide the salary by 52 for the weeks in the year, and then use an alternate method to determine the hourly rate. The excess hours typically worked should be multiplied by 1.5 to account for overtime with 40 hours added, and then this number must be used when dividing the weekly salary. If the employee is not exempt, then the employer must pay the worker time and a half for his or her regular hourly rate. So, if a worker typically works 50 hours a week. The weekly salary must be divided by 55 to find the hourly rate, because this calculation accounts for overtime.
Here’s an example. Say, Jane Doe makes a salary of $40,000 a year. She typically works 40 hours every week at her job. Her employer is required to determine her hourly rate thus:
- Divide $40,000 by 52 for the weeks in the year. Her weekly salary under this calculation is $769.23.
- Then, the employer should divide this weekly salary by 40 hours for a standard workweek. This calculation results in an hourly pay rate of $19.23 per hour.
But, if on one week Jane works 45 hours per week, not 40, she might be entitled to overtime pay. If Jane is a nonexempt worker, she must be paid overtime for those additional hours, meaning she must be paid time and a half. However, there are alternate calculation methods that an employer can use if a worker regularly works overtime and if this is par for the course with a job. For example, the employer can calculate the average rate of pay considering that the worker is getting compensated time and a half for additional hours worked. However, the employer must be consistent when using this method and if a worker puts in even more hours than the average overtime, then overtime pay in addition may be required. That’s where these calculations can get complex and where it can be helpful to have a lawyer help you if you believe you might be owed unpaid overtime.
Of course, there are also exempt and non-exempt workers. Basically, if you are a salaried worker you must be making more than $35,568 per year and also hold a managerial role or your role must require advanced training. So, if you oversee at least two other employees, have a role in hiring and firing decisions, or hold a role where you need a degree or special training, you might be classified as exempt from overtime pay.
The law regarding overtime pay is complex. Still have questions about whether you might be entitled to receive overtime pay for your hours worked? This is understandable. Moore & Associates is an unpaid overtime law firm in Houston, Texas that may be able to review your situation and help you understand your rights and next steps. If you haven’t received the overtime you are entitled to receive, you may have the right to seek a claim from your employer to receive the unpaid overtime, as well as other damages. Have questions? Reach out to the unpaid overtime lawyers at Moore & Associates today, or contact USAttorneys.com to get connected with one of our lawyers.