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Glossary · Pricing & contracts

Pay rate

The hourly wage a worker earns before their own taxes.

Definition

The pay rate is the hourly wage a worker earns before taxes are withheld. It is set by the local labor market for that role, the shift and any skills or certifications needed, and it can never be below the applicable federal, state or local minimum wage. The staffing agency pays the worker; the business pays the agency the bill rate. Tipped roles can also earn tips on top. A pay rate that is too low for the market is the most common reason orders go unfilled.

This definition is general information, not legal, tax or financial advice. Rules vary by state and change over time.

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