If your employer pays you a flat fee each week, regardless of the number of hours you work, both the federal government and the state of Texas consider you a salaried employee. Salaried employees have the same right to overtime pay as hourly employees in most cases, although some salaried employees are exempt from overtime regulations. due to how much they get paid and the nature of their work.
Employers must still pay overtime if most salaried employees work more than 40 hours in a week. Calculate the employee's hourly rate by dividing the total weekly salary by the number of hours a full-time employee works. In most cases, this is 40 hours per week, but if a business defines full-time as 36 or 37 hours, the employer should divide by that number. For example, if an employee makes $400 per week, she makes $10 per hour using the 40-hour week standard. Multiply the employee's weekly salary by 1.5 to determine how much to pay her for each overtime hour. If your employees only get paid once a month, divide the employee's total salary by the number of weeks in the month to determine her weekly salary before dividing by the number of hours per week.
As of 2011, salaried employees are exempt from overtime laws if they make more than $455 per week and work in an administrative, professional or executive capacity. Most CEOs or managers are therefore exempt from overtime laws, as are teachers, doctors and lawyers. These employees receive a flat fee each week or month, regardless of how many hours they work during the week.
If a salaried employee works irregular hours -- that is, he works more hours some weeks than others, depending on the business' needs for that week, he is still eligible for overtime pay if he works more than 40 hours in one week. The employee must be paid the same amount each week regardless of the actual number of hours up to 40 that he works. The employer determines the employee's regular rate of pay by dividing his weekly salary by 40. On any weeks that the employee works more than 40 hours, the employer pays overtime based on the employee's regular rate of pay.
If you work more than 40 hours in a week, don't assume that you are not entitled to overtime just because you draw a salary rather than an hourly wage. If you do not make more than $455 per week, ask your employer for overtime pay. If your employer refuses to pay overtime because you draw a salary, contact an attorney who specializes in employment issues to determine whether you have a viable complaint against your employer.
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