Good Morning,

2 Quick questions. Employee is salaried Non Exempt. Typical workweek is 37.5 hours.
1) If this employee works over 37.5 hours but under 40 is additional pay due?

2) If the employee works over 40 hours, how should OT be calculated


Thanks so much!
tkilb

1. No. Overtime is not due until after 40 hours, regardless of the employee's work schedule.

2.) At one and a half times the employee's hourly rate for any hours worked over 40 in the work week. The hours over 37.5 and under 40 are paid at straight time.

1. No. Overtime is not due until after 40 hours, regardless of the employee's work schedule.



I was more asking about any additional ST that would be due, not OT. In this company their practice is to send/give employment offer letters. In this employee's offer letter it states a salary and also states 37.5 hours. So my concern is if she is non exempt and non exempt EE's must be paid for all hours worked, would we in fact owe her ST for hours between 37.5 and 40?
Maybe you already answered this but since you stated OT is not due, I thought I should clarify.


2.) At one and a half times the employee's hourly rate for any hours worked over 40 in the work week. The hours over 37.5 and under 40 are paid at straight time.




So to get the hourly rate I would have to divide her weekly salary by 37.5, pay her for 40 hours, multiply that rate by 1.5 to get the OT rate, correct?




Thanks again!

Literally, it's "overtime" because it is "over" the hours which the employee's salary is expected to cover. Except, it isn't time-and-a-half overtime, it's straight-time overtime for over 37.5 hours up to 40 hours. Then it's time-and-a-half overtime, calculated by taking the employee's weekly salary, dividing it by 37.5 X 1.5.

See if this makes it easier.

Overtime is due based on how many hours are worked, not on how many hours were scheduled. So regardless of how many hours were scheduled, you owe straight time for the first forty hours worked and time and a half the rate, as Patty has explained it, for any hours after that.

The problem with salaried non-exempt is that you can only pay a salary if the employee works the number of hours regularly scheduled or less. A non-exempt employee MUST be paid for every hour they work. So if the number of hours the employee works is going to vary more often than very occasionally, a salaried non-exempt status (which is unofficial at best - there is no such FLSA status) is probably not worth while.