Hourly Employee | Meaning and Definition

What is an Hourly Employee?

An hourly employee is paid according to the number of hours he or she works. Employees are given a defined rate per hour and, if eligible, overtime compensation. For every hour of work over 40 hours per week, hourly workers are typically paid time-and-a-half. 

An hourly worker, also known as an hourly employee, is a person who is paid an hourly wage rather than a fixed salary for their services. Hourly workers are popular in service and manufacturing employment, although they can be based in a wide range of fields. Hourly employment is frequently confused with at-will employment, but the two are not identical. The basic income in the United States for hourly employees is $7.25 every 60 minutes, or $2.13 per 60 minutes for a compensated employee, as of September 2017. Wages plus benefits must match the basic minimum wage for a paid employee, or the company must cover the difference.

There are two categories of employment in the workforce: non-exempt and exempt roles. The majority of employees who are compensated by the 60 minutes are classified as non-exempt. Knowing what an hourly employee is will help you distinguish between salaried and hourly staff in terms of pay.

What is the procedure for hourly pay?

Employees who are paid by the hour are paid for the exact amount of time they worked. Unlike salaried workers, who are paid a set wage, hourly workers are paid as per the amount of time they work. As a result, if you work as an hourly employee, your pay swings from week to week.

Individuals who work on an hourly basis are mandated to be compensated at least paid. The state min wage varies from the national minimum, and employers must pay the highest of the two. For low pay statistics, go to their state’s Department of Labor’s website.