How is Overtime is Calculated for Salaried Employees in New York?

Calculating Overtime Can be Complex When an Employee is Salaried: New York City Wage and Hour Attorney Explains How to Perform Calculation

While some people dread having to work more time than they are usually required, other people enjoy the prospect of earning extra income.  This is because New York law requires that employees who are entitled to receive overcome be paid for hours worked beyond 40 hours in a typical workweek.  Calculating overtime for salaried employees is done at a rate that is one and a half the regular rate of wages.

This means that employees will earn more compensation than their normal hourly rate.  While this is easy to determine for hourly employees by just multiplying their hourly rate times 1.5, determining the overtime rate for salaried employees who do not have a set hourly wage can be more complicated.  This is why a wage and hour attorney is necessary to ensure you are receiving the total compensation you are entitled to under the law.  If you are unsure you are being paid the proper wages, call the experienced New York City wage and hour attorneys at SAMUEL & STEIN to learn your rights by dialing (646) 681-4193.

Calculating Overtime for Salaried Employees

Overtime is paid at a rate of one and a half (1.5) times the employee’s “regular rate of pay” for all overtime hours worked.  This hourly rate cannot be less than the minimum wage and must be what the employee regularly is paid for each hour of work performed.

When it comes to salaried employees or employees who are paid on a non-hourly basis, the regular rate of pay is not always obvious.  Under New York law and regulations, a salaried employee’s regular rate of pay is calculated by determining the normal weekly wage divided by the normal hours worked.

For example, if a salaried employee earns $52,000 a year or $1,000 a week, and normally works for 40 hours each week, he or she earns $25 an hour.  Therefore, the salaried employee’s overtime rate will be $37.50 an hour for any hours worked above 40 hours for that workweek.  Anything less than this wage is a violation of New York law and regulations, as well as possibly federal law.

Not Sure How to Calculate Your Overtime?  Or Do You Believe Your Employer is Not Paying You the Overtime You are Entitled To?  Call Us For a FREE Consultation!

The experienced New York City Wage and Hour attorneys at SAMUEL & STEIN are dedicated to asserting and defending the rights of employers and working people throughout New York and New Jersey.  We have the resources, experience, and knowledge necessary to ensure your legal rights are protected and you are not taken advantage of.  Call us today by dialing (646) 681-4193 or use the convenient “Evaluate Now” box on our webpage.  Together we can help answer your questions and protect your rights.

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