Employer HR Tips – January 2019

Paying Non-Exempt Employees

When it comes to paying your employees, you must consider the categories they fall under. In this month’s Employer HR Tips, we will look at non-exempt employees and consider all the factors that go into the creation of their salaries.

Local vs State vs Federal Minimum Wage

It is required by law that non-exempt employees get paid at least the federal minimum wage. Some states have their own minimum wage, and if it exceeds that of the federal minimum, employers must use that as a baseline for paying non-exempt employees. In the same way, if certain cities have their own local ordinance of a higher minimum wage than the state’s or federal’s, employers must abide by the city’s highest rate out of the three. 


When non-exempt employees work more than 40 hours in a week, they are entitled to overtime pay for all additional hours. Generally, the standard overtime pay is time and a half of the employee’s regular hourly rate. Overtime is not required when working on weekends, holidays, or rest days unless 40 hours has already been reached in the week. If not, employees would receive regular pay.

Piece Rate Pay

Another way to pay non-exempt employees is by paying them by a unit basis for each project they complete. Even if they’re not paid hourly, employers must comply with state and federal minimum wage and overtime laws. Employees must also be compensated for non-productive time such as rest and recovery.

Split Shift Pay

When an employee’s schedule is split by an unpaid period of time not designated as a mealtime or the total wages don’t exceed the minimum wage, employees are eligible for an extra hour of pay. The notion being that between two shifts, an employee is not entirely off duty. The extra hourly pay compensates for the time in between.