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An exempt employee is an employee who does not receive overtime pay or qualify for minimum wage. Exempt employees are paid a salary rather than by the hour, and they work in professional, administrative, executive, outside sales, and computer-related fields.
1. Multiply the hourly wage by the number of hours the employee works per week to compute the weekly salary rate. 2. Multiply the weekly salary rate by the number of weeks in a year to get the annual salary rate.
Is It Legal to Work 60 Hours a Week on Salary? If an employee is exempt from FLSA and any state, local, or union overtime laws, then it is legal to work 60 hours a week on salary. Some employers do pay exempt employees for overtime work through time-and-a-half, bonuses, or extra time off.
Once converted to salary, you're typically more settled into a job. It's harder to move from position to position. You may end up working more, including overtime and holidays, without any additional pay. Before converting from hourly to salary, ask how many hours on average you will be asked to work per week.
1. Multiply the hourly wage by the number of hours the employee works per week to compute the weekly salary rate. 2. Multiply the weekly salary rate by the number of weeks in a year to get the annual salary rate.