Hourly employee

An hourly employee is a worker whose employer pays them based on the number of hours they work per week.

Hourly employees receive compensation for each hour worked, with their wages varying based on their weekly schedules or shifts. They track their hours using time cards or timesheets provided by their employer. Hourly employees can work either part-time or full-time.

Hourly employees receive a predetermined hourly wage set by their employer. Their earnings may include overtime pay and bonuses for hours worked beyond the standard 40-hour workweek. Most countries have labor laws requiring hourly workers to receive at least the minimum wage.

Employers can pay hourly workers on various schedules, such as weekly, biweekly, semimonthly, or monthly, similar to salaried employees.

In countries like the US, hourly employees are typically classified as non-exempt under labor laws. This means they are entitled to overtime pay for hours worked beyond 40 hours per week. Overtime pay is usually set at one and a half times the regular hourly rate.

Traditionally, benefits were often reserved for full-time salaried employees. However, many companies now offer benefits to both salaried and hourly employees. Hourly workers who achieve full-time status may be eligible for benefits such as health insurance, life insurance, paid time off (PTO), and retirement plans.

Hourly positions offer flexibility in terms of work hours and earnings, whereas salaried positions often come with more stability and benefits. Employers need to understand the differences between hourly and salaried positions to ensure proper compensation and workload distribution.