Employees who receive overtime are typically compensated with what kind of wage?

Employees who receive overtime compensation are typically paid on an hourly wage basis. This is because overtime pay is calculated based on the number of hours worked beyond the standard 40-hour workweek, as mandated by the Fair Labor Standards Act (FLSA) in the United States. Hourly employees earn a base wage for each hour worked, and when they exceed the standard hours, they qualify for overtime pay, which is usually set at a rate of 1.5 times their regular hourly rate.

Other forms of compensation, like salaried wages, fixed salaries, or commission-based earnings, generally do not qualify for overtime pay. Salaried employees often receive a consistent paycheck regardless of hours worked, while fixed wages imply a predetermined amount without consideration of hours. Commission-based compensation is typically associated with sales roles and is not directly tied to hours worked, thus lacking a traditional overtime calculation as seen in hourly wage structures.