Straight time pay is the wage structure paid per hour to an employee by the employer for the work input in total. This does not include overtime or paid time off.
Straight time pay is the sole earning of the employee by putting the work input in hours for carrying on tasks. When you decide on your employees’ regular rate of pay, you need to look into the details of how many hours in a single week – say 40 hours a week as a full-time employee - your employee(s) is required to work for you and that is paid according to regular hourly rate what is as per your straight time rate regulations but not in violation with the minimum wage structure law of the state.
Straight time pay is paid - as per your rate of pay decided per hour - for a week or two according to the number of hours and days input - but it is important to bear in mind that it does not include the overtime pay.
For calculating the straight-time pay of your employees, simply you need to multiply the hourly wage rate by the number of hours an employee works.
For example, Ms. Ella works 35 hours per week (that is 5 days a week in-putting 7 hours a day), and her hourly wage payment rate is USD 15. Calculate her straight time pay for one working week by the below-mentioned method using the available data:
Wage payment rate per hour = USD 15
Number of hours worked = 35 per week
Multiply the Wage payment rate per hour x the number of hours worked per week
$15 x 35 hours = 525
Ms. Ella’s Straight Time Pay for One Working Week = $525
It is important for your HR to know what the difference is between the Straight Time Pay and an Overtime Pay, appended below information would make it clear for you
The Straight Time Pay is in case you pay your employees the number of total hours they work that is even more than 40 hours per week, at the same rate of pay – that is the number of hours is paid on a single same rate – is not true. It is because the overtime rules are one-and-a-half times more than the regular hourly wage rate.
And violating these potentially may cause double the regular rate of per hour wage payment you have to then pay your employees. Paying all the hours at one rate is not considered legal, although is disastrously practiced!
The Law is very clear regarding straight-time pay and overtime pay.
According to the Fair Labor Standards Act (FLSA) in the United States, every Organization needs to declare a rate of hourly payment under the wage structure policy program - and although that must NOT be less than the minimum wage structure as is defined by the State from time to time considering the inflation and economic conditions of the globe.
The routine workweek is of 40 hours: consisting of 8 hours a day and 5 days a week. All the hours input by the workers more than 40 in a week would be considered to be calculated as their overtime compensation unless the workers are not exempt employees. OTP is to be paid 1.5 times the normal wage rate.
FLSA established such rules in 1938 encompassing minimum wage structures, overtime pay regulations, records keeping requisite in general; and time-tracking mechanisms for both public as well as private companies.
The Exempt employees are as mentioned below:
Commonly, the legal cases related to overtime claims which are about straight time pay confusion in violation of rules, as are seen in vogue / in practice, are as mentioned here:
The dissemination of the relevant information regarding such rules should be practiced in true essence, in case any human or technology errors cause payments’ diversions so that be rectified within due course of time shunning human rights damage – if any – so that to save your company from defaming and litigation.
Nevertheless, the HR domain workers, Accounts department employees, and finance divisions’ duty doers must be trained to keep you from violating the State Laws.