Different forms of compensation in Alabama include:
Hourly Pay: A fixed rate paid to employees for each hour worked.
Salary: An annual sum divided evenly over pay periods, typically for salaried positions.
Supplemental Pay: Any form of compensation that deviates from regular hourly or salary pay, encompassing overtime, bonuses, commissions, and tips.
Overtime: Additional compensation, typically at a rate of 1.5 times the employee’s hourly rate, earned when specific daily, weekly, or consecutive work hour thresholds are exceeded beyond the standard 40-hour work week.
Be sure to review local and federal overtime regulations when compensating your employees, as these laws can vary by location.