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Hourly Rate
Definition
An hourly rate is the amount of money paid per hour of work, commonly used for part-time, temporary, and freelance positions.
Explanation
Hourly employees are paid for each hour they work, with overtime typically required at 1.5x the regular rate for hours beyond 40 per week. Unlike salaried employees, hourly workers must track their hours and may have variable pay from week to week.
Convert hourly rates to annual salary by multiplying by 2,080 (40 hours x 52 weeks) for a rough estimate. The minimum wage sets the legal floor for hourly rates.
Example
A freelance writer earning $50 per hour who works 20 hours per week makes about $52,000 per year before expenses.