Employee Types & Classifications

Hourly workers

Hourly workers are employees who are compensated based on the number of hours they work. Unlike salaried employees, who receive a fixed wage regardless of hours worked, hourly workers' earnings vary depending on their work schedule. Their pay is calculated by multiplying their hourly rate by the number of hours worked during a pay period.

Hourly workers are commonly employed in industries such as retail, hospitality, manufacturing, healthcare, and construction. They are typically classified as non-exempt employees, meaning they are entitled to overtime pay for hours worked beyond the standard 40-hour workweek.

Key characteristics:

  1. Compensation: Hourly workers are paid a pre-determined rate for each hour worked. This rate must meet or exceed minimum wage laws.
  2. Overtime Eligibility: In most jurisdictions, hourly workers earn overtime pay (often 1.5x their regular rate) for hours worked over 40 per week.
  3. Work Hours: Their schedules may vary weekly, depending on employer needs or employee availability.
  4. Time Tracking: Hourly workers must record their hours using methods such as time clocks or digital timesheets.
  5. Variable Paychecks: Since their income depends on hours worked, paychecks can fluctuate from one period to another.