How is overtime rate calculated for a salaried employee who is paid monthly?

Salaried employees don't collect overtime. A salaried employee is paid a set salary to work regardless of how many or how few hours a week/month they actually work.

It depends on each company, I believe. My husband is salaried, but he works under a contract. If he works more than 50 hours per week he is entitled to comp time or a specified rate. He has to have any overtime authorized. He is a US federal contractor.

I never heard of salaried employees receiving overtime until I started working for this company. The company does it as an incentive and is very good to the employees. Of course, there is always a few who like to abuse a good thing. But if overtime was giving to salaried employee, how would it be done?


Salaried employees don't collect overtime. A salaried employee is paid a set salary to work regardless of how many or how few hours a week/month they actually work.

As Em said, if a company compensates its employees for overtime, they are doing as a matter of THEIR company policy. So you need to find out what the posted policy is. Ask your HR or payroll dept.

If your company does this as an incentive thing then the going rate should be 1 1/2 times the salary on an hourly basis. Better check with HR before you think you're going to end up with a huge OT check on payday and find that you didn't get as much as you expected to get. Normally salaried employees don't get overtime. There are the rare companies that DO pay salaried employees overtime. Be thankful you have a company that does this perk.

It is legal for companies to pay salaried employees overtime, although they are not required to do so.

That is if the salaried employee is an exempt employee. Non exempt employees can be paid a salary and they are eligible for overtime.

If a salaried employee is paid overtime it is usually in only a few situations (union contracts)(Federal contracts). What they would probably do is set a certain amount of hours that you are required to work according to contract say 50 hours. If you worked more than that you would receive a payment to compensate you for the overage on the contract or a bonus payment. This is whatever the company policy and the contract have decided you will receive for the extra time worked.
You would need to ask Human Resources for the amount that the company reimburse's for the contract bonus compensation.

Shirley

I worked in private industry and my employer felt that she didn't have to pay salary employees overtime. I've done some research into this matter because it happened to me. Department of Labor unless specifically exempt, employees covered by FLSA must receive overtime pay for hours worked in excess of 40 in a workweek at a rate of not less than time and a half. Overtime pay cannot be waived by agreement between the employer and employee. Further information can be located at dol.gov. Fact Sheet #23 Overtime Pay Requirements of FLSA. I'm going to court to get the overtime that I entitled to which totalled more than $40,000. Check into the issue carefully because you also might be entitle to damages maybe double or triple what you are due as a penalty to the employer. Salalry employees are entitled to overtime unless they are considered exempt.

Nope, salary employees, if they are real salary employees are exempt, management, employees, supervisors, foreman and so on. Also many sales positions can be.
Plus firemen, police and corrections fall under their own special rules.

But no salary employees if they are paid over the min amount to qualify are not required to be paid overtime

I'm not sure which states you are all in but in California you must be paid overtime even if you are on salary. The only thing that stops that is if you have exempt status, which also falls under a strict criteria. See below:

Q. Are salaried employees entitled to overtime?


A. It depends. A salaried employee must be paid overtime unless they meet the test for exempt status as defined by federal and state laws, or unless they are specifically exempted from overtime by the provisions of one of the Industrial Welfare Commission Wage Orders regulating wages, hours and working conditions.

Its best to research the laws in your own state. Most states have all the info on their website.

Hope this helps.

Imemine

I'm not sure which states you are all in but in California you must be paid overtime even if you are on salary. The only thing that stops that is if you have exempt status, which also falls under a strict criteria. See below:

Hope this helps.

Imemine

When quoting from someplace, please identify where you received the quote from.

The problem here is that, in the vast majority of cases, salaried employees are exempt. The terms are often used interchangeably.