Straight-Time Pay

Straight-time pay is the standard rate of compensation an employee earns for their regular working hours, before any extra premiums or overtime are added. It is typically calculated based on an hourly wage or a set salary, and it reflects what an employee is paid for a normal shift or workweek.

Straight-time pay also serves as the baseline for calculating overtime. In the US, for example, non-exempt hourly employees who work more than 40 hours in a week are generally entitled to overtime pay at 1.5 times their straight-time rate for those extra hours. Understanding the straight-time rate is what makes it possible to calculate accurate overtime, shift differentials, and other premium pay correctly.