1. Examine Your Gross Pay

A paycheck “stub” shows your total earned and all deductions. If your pay goes directly into a bank account, ask for a record of the deposit and the deductions.

Begin by examining your gross pay. This is what you earned before any amounts were deducted.

Here’s a fact you should know before you can understand your paycheck. You will be classified as either “exempt” from federal overtime laws or “nonexempt.”

Exempt and nonexempt employee definitions:

• If you are nonexempt, your employer must pay you when you work beyond your scheduled hours. Your overtime pay must be at least 1.5 times your regular pay.
• If you are exempt, you don’t get paid for overtime. Instead, your pay stays the same no matter how many hours you have worked.