What does an employer have to pay to an hourly employee?

  • If an hourly employee does completely non-tipped work, that employee is entitled to be paid minimum wage.
  • The minimum wage can vary by state.
  • If the hourly employee works more than 40 hours in a given week, the employee generally has to be paid overtime. That is time and a half.
  • The requirements are a little bit different for hourly employees who do tipped work.
  • The employer can pay tipped wages as long as the tipped wage plus the tips that the employee makes meets or exceeds the regular minimum wage.
  • In order to pay the tipped wage, the employer is also required to explain to the employee and give the employee notice that this is what the employer intends to do.