Hourly rate

Compensation expressed as dollars per hour worked.

Definition

An hourly rate is compensation expressed as dollars per hour worked. Gross pay for an hourly employee equals the rate multiplied by hours worked in the pay period, plus any overtime, shift differentials, or bonuses. Hourly compensation is the dominant model for retail, restaurant, manufacturing, warehouse, healthcare-support, and field-service roles. Hourly employees are typically non-exempt and entitled to FLSA overtime. State law often requires accurate timekeeping records and final-paycheck timing protections specifically for hourly workers.

Example

A $22/hour warehouse worker logging 80 hours biweekly earns $1,760 in regular gross pay.

Related terms

• Pay period — The recurring window of time covered by a single paycheck.
• Pay frequency — How often paychecks are issued.
• Payday — The calendar day wages are deposited.
• In arrears — Wages paid after the pay period ends.
• Biweekly — Every other week — 26 paychecks per year.
• Semimonthly — Twice per month on fixed dates — 24 paychecks per year.

See also

• Pay schedule calculator — convert salary to per-paycheck amount
• Pay frequencies primer — weekly, biweekly, semimonthly, monthly
• Frequently asked questions