How do we determine the hourly rate for a salaried, non-exempt employee?
For salaried non-exempt employees who are not paid a regular hourly rate because they are paid on a salary or commission basis, you use their total compensation to derive their hourly rate. The hourly rate is computed by dividing the salary by the number of hours the salary is intended to compensate. As an example, if the employee is paid $500 for a workweek of 40 hours, their hourly rate of pay is $12.50. Thus if they work overtime you would have to pay them $18.75 per hour (one and one-half of $12.50).
