Glossary of Payroll Terms

Hourly Employee

An employee whose wages are based on an hourly rate. Such employees are usually paid an overtime rate of time-and-a-half for hours worked beyond their regular weekly hours.

Hours Worked

FLSA wages are determined by the number of hours an employee actually works. "Hours not worked" are not governed by the FLSA, even if they are considered "work time" or "paid time" by the employer. Thus, holidays, sick days, or other days off do not count as FLSA hours worked.

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