I’m thinking about picking up some extra hours at work but I’m not sure how it will affect my paycheck. Can someone explain how overtime works?
Working overtime can affect your pay in a few different ways. First, if you are paid hourly, you will simply receive 1.5 times your regular hourly rate for any hours worked over 40 in a week. So, if you make $10 per hour normally, you would make $15 per hour for any overtime hours worked. Second, if you are salaried, things can get a bit more complicated. If you are exempt from overtime, meaning your salary is high enough and your job duties are considered managerial or professional, then you will not receive any additional pay for working overtime. However, if you are non-exempt, meaning your salary is lower or your job duties are considered manual labor, then you will be entitled to overtime pay. Overtime pay for salaried employees is calculated by taking the employee’s regular salary and dividing it by the number of hours they are expected to work in a week, then multiplying that number by 1.5. So, if an employee makes $500 per week and is expected to work 40 hours, their overtime rate would be $12.50 per hour ($500/40 x 1.5).
1 Like