What is Straight-Time Pay? Definition, Formula & Examples

Straight-time pay refers to the regular pay or base pay an employee earns during a designated pay period. This is generally 40 hours a week. Essentially, it represents the standard pay rate and does not include any additional compensation, such as overtime pay, bonuses, or paid time off.

In other words, it is the regular wage an employee receives for working a regular number of hours at the agreed hourly wage calculation.

When Is Straight-Time Pay Used vs. Overtime Pay?

Generally, straight-time vs. overtime is based on the number of hours an employee works in a week.

Employers pay straight-time at the regular rate for hours worked up to 40 hours per week (or the standard threshold defined by law).

Once the employee is working beyond 40 hours per week, those extra hours will be paid at an overtime rate.

Frequently Asked Questions

Q1.	What does straight-time pay mean?
Ans.	The straight time pay meaning is simple. It is the amount of money an employee earns for their regular working hours. Therefore, it does not include any additional earnings, like overtime pay or paid time off.
Q2.	Can overtime hours count as regular time?
Ans.	Straight time pay for hourly employees: Hourly rate X Hours worked You only need to multiply the number of hours worked by the hourly rate.
Q3.	How is straight-time pay calculated for salaried employees?
Ans.	To calculate it for a salaried employee, divide the annual salary by 52 weeks or the number of pay periods in a year. For instance, if an employee’s gross earnings are $80,000 per year, then, Weekly pay would be $80,000 ÷ 52 weeks = $1,538.46 per week Monthly pay would be $80,000 ÷ 12 months = $6,666.67 per month
Q4.	Is straight-time pay the same as regular pay?
Ans.	Yes, it is the same as the regular pay for standard hours worked.
Q5.	When should employers pay straight-time vs. overtime?
Ans.	Employers should pay straight time for hours worked up to the standard limit of 40 hours per week and overtime for hours worked beyond that.
Q6.	Does the Fair Labor Standards Act (FLSA) regulate straight-time pay?
Ans.	Yes, the Fair Labor Standards Act (FLSA) regulates the straight-time pay. Moreover, the FLSA straight-time pay establishes minimum wage, overtime pay, and also states that all employees must define a regular rate of pay.
Q7.	Can employers pay straight-time for overtime hours?
Ans.	No, it is illegal to pay employees straight-time for overtime hours. This violates FLSA and, therefore, is illegal. However, if the employee is salaried and exempt from overtime benefits, then you can compensate them with straight-time pay.
Q8.	What does time and a half mean in payroll?
Ans.	In payroll calculation, time and a half refers to the overtime pay rate, which non-exempt employees are entitled to when they work for more than 40 hours a week. It is 1.5 times their regular wage.
Q9.	Does straight-time pay apply to exempt employees?
Ans.	No, exempt employees generally receive a fixed salary and are not eligible for overtime under the FLSA.
Q10.	Is straight-time pay required for all employees?
Ans.	No, employers are required to provide it only to non-exempt employees for their regular hours of work. It does not apply to exempt or salaried employees.