If an employee receives a fixed weekly salary but is classified as non-exempt, use the Salaried Non-Exempt Overtime Framework. The critical difference from the hourly method is that straight-time pay is already embedded in the salary, so you apply only the 0.5x premium on overtime hours, not the full 1.5x.
The Salaried Non-Exempt Overtime Framework
Origin: U.S. Department of Labor, FLSA regulations (29 CFR Part 778)
Components:
- Salary-to-Hourly Conversion. Divide the fixed weekly salary by the number of hours the salary is intended to cover (typically 40) to derive the regular hourly rate.
- Regular Rate. The derived hourly rate used as the base for overtime premium calculations.
- Overtime Premium. The 0.5x additional pay per overtime hour (since straight-time is already covered by the salary).
- Total Weekly Compensation. The fixed salary plus the overtime premium for hours worked beyond the threshold.
Sequence: Salary Conversion → Regular Rate → Premium Calculation → Total Compensation
When to use: Apply when an employee is salaried, non-exempt, and works overtime. Note that the premium-only method (0.5x, not 1.5x) applies because straight-time is already embedded in the salary.
EasyClocking by WorkEasy Software distinguishes salaried non-exempt records from hourly records automatically, applying the premium-only calculation path without manual reclassification. For more on classification pitfalls, see exempt vs non-exempt overtime rules.
The Fluctuating Workweek Overtime Framework
A related but distinct method applies when a salaried non-exempt employee has a written agreement that the fixed salary covers all hours worked regardless of quantity and hours fluctuate significantly week to week. Under 29 CFR § 778.114, you divide the fixed weekly salary by total hours actually worked that week to produce an effective regular rate that changes every period, then apply the 0.5x premium to overtime hours. EasyClocking by WorkEasy Software flags fluctuating-workweek employee records for this half-time premium path and recalculates the effective regular rate automatically each pay period. This method is not permitted in all states, so confirm jurisdictional eligibility before applying it.