Hourly Employee

Learn about Hourly Employee and more with Workstream and improve your hiring vocabulary. Workstream helps companies hire better, faster - everyday.
Schedule a Demo Try Workstream for Free

What is an hourly employee? 
 

An hourly employee is someone who is paid for the actual number of hours that they work per period. Their rate per hour is a predetermined rate that is agreed upon by the employer and the employee before work starts. 

Hourly employees are required to be paid the minimum wage. Presently, the federal minimum wage is $7.25 per hour. However, this figure can also vary depending on the state. There are U.S. states that have set a minimum wage that is higher than the federal minimum wage. In case of an overlap, the employer must pay that which is higher and is more favorable to the worker. To know more about the minimum wage in your state, you can check with your state labor office. 

To validate the number of hours that they work, hourly employees need to document their work hours via a time card system. The time card is checked and approved by the employer before payroll processing. To get an idea of how wages are computed, multiply the hourly rate by the number of hours worked for a pay period. For instance, let’s say you are paid $10 an hour and you worked a total of 25 hours for the week. Multiply $10 by 25 and you will get $250 which is your gross pay for the week.

How many hours do hourly employees work per week? 
 

The number of hours that an hourly employee must work per week is set by the employer. There is no federal law that sets a standard on the number of hours to be worked per week. However, employers are legally required to provide overtime pay to hourly workers. According to the Fair Labor Standards Act (FLSA), overtime pay for non-exempt employees should not be less than time-and-a-half (1.5x the employee’s normal hourly wage) for hours worked over 40 hours per week.

How does an hourly employee differ from a salaried employee? 
 

Hourly employees, as we have mentioned, are paid for the actual number of hours that they work in a pay period. They are entitled to overtime pay for each hour that they work over 40 hours per week. On the other hand, salaried employees are paid a fixed, regular salary regardless of the number of hours that they worked. This means that, even if they work less than 40 hours a week or more than 40 hours a week, they will still be paid the same wage. 

Also, hourly employees are paid only for the actual hours that they worked. Because of this, their work hours may vary depending on their scheduled weekly work rotation or shift. For salaried employees, they get a fixed wage no matter their work schedule. 

Do hourly employees have benefits? 
 

Benefits packages offered to hourly employees are determined by the employer. Usually, hourly employees who work full-time are offered benefits such as sick time, vacation, life insurance, health insurance, retirement plans, and more. According to the Affordable Care Act (ACA) and the Internal Revenue Service (IRS), an employee who renders paid work for at least 30 hours per week or 130 hours per month is classified as full-time. 

Try out Workstream to hire employees for
your business

A revolutionary hiring process for Hourly positions

A revolutionary hiring process for Hourly positions Hiring hourly staff in San Francisco can be a tough job. Workstream can help accelerate the process by letting you post on job boards like Indeed within seconds.


1-Click Job Posting

No more tedious copy and pasting. We integrate with all the top job boards. All applicants funnel into one intuitive dashboard.

Text-to-Apply Posters

Print out your unique QR code and text message number. Applicants scan/text to see all open positions and apply right away.

Automated & 2-Way SMS

Engage with applicants via text. Include links to screening questions, forms, and more. Use 2-way text to answer questions.

Endless Integrations

Connect Workstream to your calendar so applicants can schedule interviews. Streamline onboarding with background check & HR integrations.

Candidate Tracking & Scoring

View all your applicants and employees in one place. Make notes on their progress. Access their docs anytime from anywhere.

Customizable Templates

We provide templates for everything from job postings to offer letters. Send links to docs and tax forms via text message so new hires sign digital copies.

What other owners
think about hiring through Workstream

"Great customer service, wonderful automation."


Envoy America


Currently hiring on Workstream for:

Companion Driver - Set your own hou...

Companion Driver (EL Paso, Tx)

Companion Driver - Set your own hou...

"The flexibility and adaptability of their platform is ideal built for our small business. Speaking from experience, I can say that Workstream's dedication to customer support, client support and sincere appreciation and utilization of feedback is exceptional. Their team consistently demonstrates genuine care for our business needs. The accessibility we enjoy to their content creators and program designers is exactly what our small business needs. At no point in our interactions do I for a moment feel as though we are not their most valued client. At the conclusion of every conversation with their team, I feel better informed and more capable of using their platform to its fullest."


DeliverThat


Currently hiring on Workstream for:

Contract Delivery Driver - Pay Twic...

Integrations Engineer

Recruiting Specialist

"WorkStream is awesome. Easy to use recruiting tool!"


Straus Family Creamery


Currently hiring on Workstream for:

Warehouse Assistant

Dairy Processing Operator

Production Shift Manager