Salaried Nonexempt Employees
Salaried nonexempt employees receive a salary rate for a fixed number of hours. However, when they exceed the fixed number of hours and work more than 40 hours in a week, they receive overtime compensation. The basis of the calculation of their overtime compensation is the equivalent hourly rate the employee earns. For example, a paralegal that earns $59,000 per year earns the equivalent of $28.36 per hour, based on a 40-hour workweek. For a 37 1/2-hour workweek, the $59,000-a-year employee earns the equivalent of $30.25 per hour. The overtime rate for salaried nonexempt employees is the same as hourly, nonexempt employees: 1 1/2 times the hourly rate. Therefore, the paralegal with a 40-hour workweek would earn $42.54 for every hour that exceeds 40 hours in a week. The paralegal with a 37 1/2-hour week would earn $30.25 for the 2 1/2 hours up to 40 hours in a week, and then $45.37 for every hour after 40 in a workweek.
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