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Joined 10 months ago
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Cake day: November 22nd, 2023

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  • There are two classifications of salaried employees. Salaried exempt and Salaried eligible for overtime. There are massive lawsuits and proposed law changes going on right now because of misclassifying employees by companies. A lot of people are misclassifying salaried employees to try to skirt the federal overtime labor law by saying they are salaried exempt.

    Salaried exempt is generally for management positions like executives or “white collar” workers. If you clock in and out you probably are being misclassified.

    Salaried eligible for overtime is a regular employee who if they work more than 40 hrs in a week are to be paid 1.5 their rate for any hours over 40 in a given week. This is federal labor laws and has been for a very long time.

    https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime

    To answer your question, contact your payroll provider and make sure they are classified as salaried eligible for overtime. You then have their base rate depending on their payment frequency, weekly, biweekly, monthly, etc and their overtime rate of 1.5. So the payroll processor will automatically compute the base rate, plus overtime rate and calculate taxes benefits etc.

    I use Gusto and it’s super easy, they enter their times on a time tracker and it does everything from there.