40 Hour Work Week Salary Calculator

The Fair Labor Standards Act Overtime Calculator Advisor provides employers and employees with the information they need to understand Federal overtime requirements. The regular rate is calculated by dividing the total pay for employment in any workweek by the total number of hours actually worked to determine the regular rate. To properly compute overtime on a flat sum bonus, the bonus must be divided by the maximum legal regular hours worked in the bonus-earning period, not by the total hours worked in the bonus-earning period. This calculation will produce the regular rate of pay on the flat sum bonus earnings.

Overtime on a flat sum bonus must then be paid at 1.5 times or 2 times this regular rate calculation for any overtime hour worked in the bonus-earning period. Overtime on production bonuses, bonuses designed as an incentive for increased production for each hour worked are computed differently from flat sum bonuses. To compute overtime on a production bonus, the production bonus is divided by the total hours worked in the bonus earning period. This calculation will produce the regular rate of pay on the production bonus. Overtime on the production bonus is then paid at .5 times or 1 times the regular rate for all overtime hours worked in the bonus-earning period. Overtime on either type of bonus may be due on either a daily or weekly basis and must be paid in the pay period following the end of the bonus-earning period.

I paid my employee for 43 hours of wages during the last workweek. Eight of those hours were paid as sick leave, as the employee was out ill for one day. Am I required to pay the employee for three hours of overtime? The required overtime pay is 1.5 times the hourly rate for hours worked in excess of 40 in a workweek. Overtime is calculated based on hours actually worked, and your employee worked only 35 hours during the workweek.

Unless a policy, contract or collective bargaining agreement states otherwise, you needn´t count sick leave, vacation time, holidays, or other paid time during which the employee did not actually work. My employer paid me for 43 hours of wages during the last workweek. Eight of those hours were paid as sick leave, as I was out ill for one day.

Overtime is calculated based on hours actually worked, and in this scenario you worked only 35 hours during the workweek. Unless a policy, contract or collective bargaining agreement states otherwise, you do not get overtime pay if you used sick leave, vacation time, holidays, or other paid time and did not actually work. While salary and wages are important, not all financial benefits from employment come in the form of a paycheck. The Fair Labor Standards Act, passed in 1938, guarantees employees compensation at one and a half times their regular rate for hours worked above 40 hours per week. How overtime is calculated depends on whether the employee is paid hourly or by salary. Further, the calculation for salaried employees differs depending on the number of hours per week the salary is meant to compensate for.

Salary to hourly wage calculator lets you see how much you earn over different periods. It is a flexible tool that allows you to convert your annual remuneration to an hourly paycheck, recalculate monthly wage to hourly rate, weekly rate to a yearly wage, etc. This salary converter does it all very quickly and easily, saving you time and effort. In the article below, you can find information about salary ranges, a closer look at hourly and annual types of employment, as well as the pros and cons for each of these.

Moreover, you can find a step-by-step explanation of how to use this paycheck calculator down below. Is there a maximum number of hours employees can work during a day? For most adult workers, there are no limits on daily work hours. Theoretically, employers may schedule employees to work seven days a week, 24 hours per day, so long as minimum wage and overtime laws are observed.

Manufacturing employees are limited to 13 hours of work in a 24-hour period. There are also daily and weekly limitations on the hours minors can work. For more information, see the Oregon Wage & Hour Laws handbook. The agreed upon regular hours must be used if they areless thanthe legal maximum regular hours.

For example, if you work 32 to 38 hours each week, there is an agreed average workweek of 35 hours, and thirty-five hours is the figure used to determine the regular rate of pay. If you work more than 35 but fewer than 40 hours in a workweek, you will be entitled to be paid for the extra hours at your regular rate of pay unless you work over eight hours in a workday or 40 hours in a workweek. If you are paid on an hourly or daily basis, the annual salary calculation does not apply to you. Your bi-weekly pay is calculated by multiplying your daily or hourly rate times the number of days or hours you are paid. Overtime wages must be paid no later than the payday for the next regular payroll period after which the overtime wages were earned. Yes, there are certain types of payments that are excluded from the regular rate of pay.

Were you offered a new job opportunity and want to derive the prospective hourly wage from the offered annual salary? Just like in the last example, you need to know exactly how many hours you'll have to work per week at your new job. If you don't, the average full-time employee works 40-hours per week , and we can use that as a baseline for our calculations.

To determine your hourly wage, divide your annual salary by 2,080. The Fair Labor Standards Act requires that overtime must be paid at a rate of 11/2 times a covered employee's regular rate of pay for each hour worked in excess of 40 hours in a workweek . The FLSA does not require that overtime be paid to employees who are exempt or for hours worked in excess of 8 hours per day or on weekends or holidays. The hourly to salary calculator converts an hourly wage to annual salary — or the other way around. As an employer, use this calculator to help determine the annual cost of raising an hourly rate, or how hourly workers' overhead business expenses on an annual basis. A group rate for piece workers is an acceptable method for computing the regular rate of pay.

In using this method, the total number of pieces produced by the group is divided by the number of people in the group, with each person being paid accordingly. The regular rate for each worker is determined by dividing the pay received by the number of hours worked. For example, Sarah works as a Tax Preparer with an hourly rate of $27 and works 35 hours per week. We take her hourly rate of $27 and multiply it by her weekly hours of 35, which gives us $945. Then, we'll multiply $945 by 52 to get the annual salary of $49,140.

We'll then divide $49,140 by 12, which gives us a $4095 gross monthly income. An employer that banks overtime hours and subsequently pays for those hours must use the employee's regular rate of pay at the time the overtime is calculated. Regular rate of pay includes any special payments such as longevity, hazardous duty pay, benefit replacement pay, qualified bonus payments and other special payments.

Freelancers' earnings are usually based on hourly or daily rates though, sometimes, they are based on weekly or monthly payments. And since working as a freelancer doesn't come with the many benefits that full-time employees enjoy, their pay must be higher than what full-time employees would relatively earn. In our contemporary supply-demand-driven environment, however, we often see that the rates are under pressure. In the U.S., salaried employees are also often known as exempt employees, according to the Fair Labor Standards Act .

This means that they are exempt from minimum wage, overtime regulations, and certain rights and protections that are normally only granted to non-exempt employees. To be considered exempt in the U.S., employees must make at least $684 per week (or $35,568 annually), receive a salary, and perform job responsibilities as defined by the FLSA. Certain jobs are specifically excluded from FLSA regulations, including many agricultural workers and truck drivers, but the majority of workers will be classified as either exempt or non-exempt. It's imperative that you review the Fair Labor Standards Act whenever you convert an hourly employee to salaried pay. There are federal laws that govern the classification of salaried employees. When an employee is employed on a piece-rate basis, his or her regular hourly rate of pay is computed by adding together his or her total earnings for the workweek and dividing by the number of hours worked in the week.

For overtime work, the pieceworker is entitled to extra half-time pay at this rate for all hours worked in excess of 40 in the workweek. The employee is then entitled to extra half-time pay at this rate for all hours worked in excess of 40 in the workweek. This salary calculator estimates total gross income, which is income before any deductions such as taxes, workers compensation, or other government and employer deductions. To determine your net income, you have to deduct these items from your gross annual salary. Note that deductions can vary widely by country, state, and employer. When you convert hourly to salary, it's important to consider deductions as well.

Take, for example, a salaried employee who is paid $500 in salary for a 50-hour workweek and works a 50-hour week. The first step, as before, is to calculate the Regular Rate. However, the Overtime Hours—the hours between 40 and 50—have already been compensated by the salary. In effect, the employee has been paid $10/hour for those Overtime Hours. Thus, in calculating the overtime pay cannot be calculated by multiplying the Regular Rate by 1.5 because the employee has already received part of what he is entitled to.

Even though the fixed salary is not based on the number of hours worked, you still use the number of hours worked each week to determine the overtime rate. Since the salary is intended to compensate the employee at straight-time rates for whatever hours are worked in the workweek, the employee's regular rate will vary from week to week. Using this method, the more hours an employee works beyond 40 in a workweek, the less overtime compensation he or she receives. Can my employer offer me "comp" time off instead of paying overtime? Only government agencies are permitted to offer compensatory time in lieu of overtime.

If you are a private sector employee, you must received overtime pay when you work over 40 hours in a workweek. Your employer can discipline you for violating its policy by working overtime without the required authorization. However, wage and hour laws require that you are compensated for hours you work. OT Overtime The Time Card summary shows regular work hours and overtime hours.

As a simple baseline calculation, let's say you take 2 weeks off each year as unpaid vacation time. Then you would be working 50 weeks of the year, and if you work a typical 40 hours a week, you have a total of 2,000 hours of work each year. In this case, you can quickly compute the hourly wage by dividing the annual salary by 2000. Your yearly salary of $72,000 is then equivalent to an average hourly wage of$36 per hour. Use our calculator and enter your hourly wages in the Current Salary and set the Pay Period to hourly.

Then, input the number of hours you work in the Weekly Hours field. Once you figured out your weekly amount, multiply the total by 52 to get the gross yearly income. Then, divide the number by 12 to get your gross monthly income. Even when paying piece rate, an employer must always track the number of hours their employees work. Once an employee works over 40 hours in a single week, they must be awarded overtime pay.

Always be aware of the overtime regulations in your area when calculating your payroll - some regions, such as California in the United States, have their own requirements for minimum wage and overtime. Stating the employee wage in an hourly pay rate form helps the employer remain compliant with the FLSA and state wage and hour rules and avoids wage disputes with the employee. In a formal dispute (Wage & Hours Board Complaint), a work agreement that simply stipulates a weekly salary will be evaluated based on a 40 hour work week.

Our exclusive Hourly Pay Rate Calculator simplifies the conversion of a periodic salary to an hourly wage. If you know the reasonable hourly rate for your employee, it's simple to calculate an annual salary. This type of calculation is especially helpful when you are converting an hourly wage earner to a salaried position. It's also helpful when you are considering transitioning an independent contractor – typically paid by the hour – to a salaried position with your company. Department of Labor's regulations prevents an employer from paying an employee at or above the minimum wage or at a higher overtime rate of pay.

In addition, a number of states have enacted minimum wage and overtime pay laws, some of which provide greater worker protections than those provided by the FLSA. In situations in which an employee is covered by both Federal and state wage laws, the employee is entitled to the greater benefit or more generous rights provided under the different parts of each law. More information about state laws may be found through the state labor offices. "Nonexempt" means that the covered employee is entitled to the law's minimum wage and/or overtime requirements.

FLSA overtime pay is due on the regular pay day for the period in which the overtime was worked. The overtime pay requirement may not be waived by agreement between the employer and the employee. The overtime pay requirement cannot be met through the use of compensatory time off except under special circumstances applicable only to state and local government employees. In the U.S., according to the payment rules regulated by the Fair Labour Standards, salary workers are not covered by overtime . It is worth mentioning, that in many countries companies offer their workers various kind of compensations for overtime hours. That might be just additional money, time off adequate to the number of overtime hours, or other benefits.

When a salaried employee is classified as non-exempt under Fair Labour Standards, an employer has to pay one and a half for each extra hour over standard 40 per week. To avoid misunderstandings, clear all your doubts in your state's Department of Labour or your country's labour law. • Input your hourly wage, normal hours per week, overtime hours, and no. of weeks worked in a year to determine weekly and annual salary. The other option is to pay a non-exempt employee a Fixed Salary for a Fluctuating Workweek . The FSFW method is a useful option when an employee's hours change from week-to-week. If you wanted to be even more accurate, you can count the exact number of working days this year.

40 Hours Work Week Calculator It has a total of 365 days in the year including both weekdays and weekends. So if you worked a normal 8 hour day on every weekday, and didn't work any overtime on the weekends, you would have worked a total of 2,080 hours over the 2022 year. You can then convert your annual salary to an hourly wage of roughly$34.62 per hour. Ordinarily, the hours to be used in computing the regular rate of pay may not exceed the legal maximum regular hours which, in most cases, is 8 hours per workday, 40 hours per workweek.

This maximum may also be affected by the number of days one works in a workweek. It is important to determine what maximum is legal in each case. Overtime is based on the regular rate of pay, which is the compensation you normally earn for the work you perform.

The regular rate of pay includes a number of different kinds of remuneration, such as hourly earnings, salary, piecework earnings, and commissions. In no case may the regular rate of pay be less than the applicable minimum wage. To calculate your annual salary from your biweekly income, you must first multiply your biweekly wage by the number of weeks you work. If you don't have any weeks off at the end of the year, you'll generally multiply your wages by 26.

There are 52 weeks in a year, so you'll divide this by 2 to get your biweekly pay periods. So, for example, if you do have two unpaid weeks, take one biweekly pay period off from the resulting number. If you'd like to figure out how how to turn your hourly wage into the annual salary equivalent, you first need to pen out many hours you work per week. In our calculator, you can insert your Current Salary, set the Pay Period to Annual, and throw in the total hours in the Weekly Hours section. However, make sure you only add the hours you've been on the clock without including unnecessary breaks or off-the-clock time.

Didi Delisting What It Means

Amid continued diplomatic tensions with China, lawmakers in Washington have moved to target Chinese companies listed in the U.S. Under a new law passed last year, foreign companies could be kicked off American stock exchanges if their auditors do not comply with requests for information from U.S. regulators. The Holding Foreign Companies Accountable Act was passed last year after Chinese authorities repeatedly turned down requests from U.S. regulators to inspect the audits of Chinese firms that list and trade in the United States. China has pushed back against such requests and argued that giving U.S. regulators access to such audits could pose a national security risk to China. In August, the Wall Street Journal reported that Beijing was itself working on new regulations that would ban several Chinese companies that handle sensitive user data from listing abroad. Didi's delisting comes at the behest of Chinese regulators, who had long expressed concern that going public in the U.S. could risk exposing its vast troves of data to foreign powers.

Despite regulatory unease, the firm pushed ahead with its IPO in June, a move that Beijing regarded as a challenge to its authority, Bloomberg News has reported. The government reacted swiftly, announcing a cybersecurity probe into the firm days after its debut and taking its services off domestic app stores. Since then, authorities have weighed unprecedented penalties for the company, including a forced delisting.

People with knowledge of the matter said last week that Beijing has directed management to come up with a plan to withdraw from the NYSE. Didi's move could mark the first in a wave of Chinese delistings from the U.S. Securities and Exchange Commission on Thursday announced its final plan for putting in place a new law that mandates foreign companies open their books to U.S. scrutiny or risk being kicked off the NYSE and Nasdaq within three years. Chinese regulators opposed the U.S. listing, saying it could expose Didi's vast troves of data to foreign powers. The firm pressed ahead with the June IPO anyway, in a move that Beijing saw as a challenge to its authority. Days after the listing, the government announced a cybersecurity probe into the firm and forced its services off domestic app stores.

Instead of a simple privatization from New York, Didi is opting to seek a listing on the Hong Kong Stock Exchange first. The move will ensure that its American depositary shares will be "convertible into freely tradable shares of the Company on another internationally recognized stock exchange," according to its statement. The firm is planning to file for the Hong Kong listing around March, people with knowledge of the matter told Bloomberg News on Friday, asking not to be identified as the plans haven't been made public.

The entire process could take three to six months to complete, First Shanghai Securities analyst Linus Yip said. China's growing regulatory reach should also raise alarms for global investors. Until now no Chinese enforcement body has sought to control Chinese listings in foreign markets. But new rules give the CAC authority to vet most overseas Chinese tech IPOs.

Yet Chinese media have reported that regulators are planning to revamp rules on VIEs, indicating tighter control over foreign listings. Many have held out hope for an eventual agreement between American and Chinese regulators that would revive a once-booming cross-border listing business. Not long ago American exchanges were the leading destination for the IPOs of Chinese tech groups such as e-commerce giant Alibaba and online services group NetEase.

Didi has not commented on why it plans to leave the New York Stock Exchange for Hong Kong but the group has been under intense regulatory pressure from the Chinese government since its IPO, ostensibly over data-security concerns. Several news agencies have reported that the Cyberspace Administration of China , an increasingly powerful regulatory body, has pushed the company to delist. Since ordinary Americans "would not connect lower returns on their pension funds to delisting of Chinese firms, US politicians are unlikely to face a backlash. And that fact could make delistings more likely." However, the Public Company Accounting Oversight Board has proposed a framework for implementing a new law - the Holding Foreign Companies Accountable Act - passed in December.

Companies that fail to comply with American auditing standards for three years in a row can be delisted from US exchanges. Beijing currently does not allow the PCAOB to examine the audits of Chinese firms whose shares trade in America, citing national security concerns. The consequences of delisting can be significant since stock shares not traded on one of the major stock exchanges are more difficult for investors to research and harder to purchase. This means the company is unable to issue new shares to the market to establish new financial initiatives. EW BLOCKBUSTER public share sales have been as tortured as Didi Global's.

The firm's share price remained above its initial public offering price for just three trading days and has since fallen by more than 40%. Now the company, which was once valued at $70bn and backed by Japanese investment firm SoftBank, says it will delist from American exchanges altogether and relist in Hong Kong. The ride-hailing giant's board has authorized the company to file for a delisting of its American depositary shares from the New York Stock Exchange, it said in a statement Thursday. It will pursue a listing in Hong Kong and ensure that the U.S. stock will be convertible into freely tradable shares on another internationally recognized stock exchange. Didi said it aims to list on the Hong Kong Stock Exchange and ensure that its American depositary shares can be swapped for "freely tradable shares of the Company on another internationally recognized stock exchange," according to a statement. The firm is planning to file for the Hong Kong listing around March, people with knowledge of the matter told Bloomberg News.

The entire process could take three to six months, First Shanghai Securities analyst Linus Yip said. The US Securities and Exchange Commission has been calling on Chinese firms listed in the US to be more transparent with their books. Yesterday, the SEC said that Chinese companies need to reveal whether they are owned or controlled by a Chinese government entity, which could hastenthe "decoupling" of Chinese stocks and the US markets. China has not given the SEC access to local audits of firms listed in the US due to national security concerns, which has long been seen as a major risk to US investor interests. Didi debuted on the New York Stock Exchange in June this year after raising around $4.4 billion from its IPO.

At the time of its listing, the company was valued at $68 billion—a number that briefly shot up even higher. But the company's stock began to tumble in July after regulators in China opened an investigation into the company's cybersecurity practices. The Cyberspace Administration of China ordered mobile app stores in the country to remove 25 apps operated by Didi and barred the company from signing up new customers. Authorities in Beijing were reportedly angered by the fact that Didi pressed forward with its U.S. IPO despite being asked to put in on hold while a review of its data security practices was being conducted. While the investigation into Didi is still ongoing, Reuters reports that the company is expecting it to be wrapped up by the end of the year and is preparing to relaunch its apps in the country.

Didi didn't give any rationale for the delisting, which it said has received support from its board and would later require a shareholder vote. The company ran into trouble with Beijing almost immediately after its $4.4 billion initial public offering. The IPO blindsided Chinese regulators, who launched a data-security review, pulled Didi products from Chinese app stores and began a broader overhaul of the framework for international listings by Chinese companies.

Chinese ride-sharing giant DiDi has been caught in Chinese regulators' crosshairs since it launched its starcrossed $4.4 billion U.S. DiDi finally announced last Friday its plans to delist from the New York Stock Exchange and relist in Hong Kong. The company's departure from the U.S. could make it the test case in a transition to a tougher data security oversight regime that could shape how Chinese tech giants conduct their businesses in the future. The American government, which sees China as the greatest economic, political and military rival, has been putting pressure of its own on Chinese ties.

It has forced some state-controlled Chinese companies in delist their U.S. shares. Securities and Exchange Commission adopted rules that would require reluctant Chinese companies listed in the United States to further open their books to American accounting firms or get kicked off its stock exchanges. They can sell earlier if they wish to; Didi shares ended down 22.1% on Friday as many investors chose to cash out.

On December 3rd, DiDi, the world's largest ride-hailing app, announced it would delist from New York Stock Exchange and move its listing to Hong Kong, heeding the calls from the Chinese authorities. DiDi, with its 600 million users , is by far the world's largest ride-hailing app and calls itself 'the world's largest depository data. As such, it has been subject to several onerous investigations in China since its initial public stock offering , which had put the company under the purview of US financial authorities. Inevitably, such jurisdictional overlap is sensitive for Chinese security agencies, who deem any access to DiDi's location data a matter of national security.

Similarly, most US hedge funds, mutual funds, and rich individuals will still be able to invest in Chinese firms listed in Hong Kong, and even – albeit less conveniently and straightforwardly – those listed in mainland China. True, delisting profitable and fast-growing Chinese companies may reduce returns for many middle-class US households whose pension funds are restricted to investing only in US-listed securities, and US stock exchanges will lose business. As ordinary Americans would not connect lower returns on their pension funds to delisting of Chinese firms, US politicians are unlikely to face a backlash. A local retail investor is warning about the risks of buying shares in Chinese companies listed on US stock exchanges following the delisting of a major firm. Stocks are also delisted when a company decides to return to being a private rather than publicly held company.

What is unusual is for a company, such as Didi, to delist from one exchange and relist on another . It is more common for a company to list its shares on multiple stock exchanges around the world, making its stock available for trading in both New York and Hong Kong, for example. Simultaneously, Beijing has been pushing Chinese companies to list domestically. The company announced the decision yesterday (Dec. 2), and said it will ensure its American depositary shares can be converted into "freely tradable shares" on another international stock exchange. It also said it has started pursuing a listing on the Hong Kong Stock Exchange. The firm didn't give a reason for the delisting, or a time frame for the Hong Kong listing.

Investors should consider Didi's exit a death knell for Chinese IPOs in America. Those listings have already been threatened by American regulations that require all listed companies to provide access to internal auditing documents or face eventual delisting. Chinese officials have refused to allow access, often deeming this material "state secrets". Regulators said in July they would step up scrutiny of tech companies with shares traded abroad and their information security and cross-border data flows. Didi's share price fell 25% after regulators launched an investigation into its handling of customer data following its June 30 stock market debut.

The penalties imposed on Didi – widely interpreted as a warning to other Chinese companies against listing in the US without government approval – partly reflect three concerns among Chinese policymakers. The authorities are worried that sensitive digital data, including the location of important addresses in China, may fall into the hands of the US intelligence or defense communities. They also do not want Chinese technology firms to become too large and powerful, and fear that Big Tech companies' forays into financial markets may undermine financial stability. Often, involuntary delistings are indicative of a company's poor financial health or poor corporate governance. For example, in April 2016, five months after receiving a notice from the NYSE, the clothing retailer Aéropostale Inc. was delisted for noncompliance. In May 2016, the company filed for bankruptcy and began trading over-the-counter.

In the United States, delisted securities may be traded over-the-counter except when they are delisted to become a private company or because of liquidation. When a delisting occurs, it typically results in shareholders losing all of their investment in a particular stock unless they sell their shares before the delisting occurs. However, if a company is delisted and investors do not tender their shares, some stocks can be traded on the over-the-counter market.

Didi is aiming for a Hong Kong listing as soon as the first quarter of 2022, people familiar with the matter said. In doing so, it would join a series of U.S.-traded Chinese companies, including Alibaba, that have obtained so-called homecoming listings since late 2019. This, however, puts the Hong Kong stock exchange and securities regulator in a bind, as Didi currently doesn't meet the city's listing requirements.

Officials at China's Securities Regulatory Commission have resisted the U.S. Securities and Exchange Commission's information disclosure requirements, which could reveal potentially sensitive market information. Didi went ahead with the listing and within a week, the Cyberspace Administration of China, China's top internet regulator, ordered the main Didi app to be taken down pending a cybersecurity review. Days later, the CAC ordered the removal from app stores of an additional 25 apps owned by Didi Global Inc.

But regulators also have gone after ride-hailing firms, video game makers for-school operators, online delivery apps, Macau casinos and online brokers. On Dec. 14, Beijing levied fines vs. social media firm Weibo for publishing illegal content. China has signaled that it'll take a dim view of new overseas listings, especially for internet and data-centric companies. Many big U.S.-listed Chinese companies already have secondary listings in Hong Kong.

But after seeing so many Chinese companies choosing New York, the Hong Kong Stock Exchange decided to allow US-style multiple share classes for technology and life-sciences firms. More Chinese firms have since listed in Hong Kong, or have a dual listing there and in New York. Tencent, China's biggest social-media company, was first traded in Hong Kong before adding a secondary listing in New York, and currently commands a higher price-to-earnings multiple than Facebook, its closest US counterpart. The stock market consists of exchanges or OTC markets in which shares and other financial securities of publicly held companies are issued and traded. The delisting of a security can be voluntary or involuntary and usually results when a company ceases operations, declares bankruptcy, merges, does not meet listing requirements, or seeks to become private.

Washington has also been tightening standards for Chinese companies wishing to list in the U.S. Securities and Exchange Commission adopted rules that would require Chinese companies listed in the United States to open their books to American accounting firms or risk being kicked off its stock exchanges. Since 2019, more than a dozen Chinese companies – including tech giants like Alibaba Group Holdings – have begun to explore listings outside the U.S. Beijing, for its part, has grumbled aloud about Chinese companies giving the U.S. regulatory authorities unfettered access to their books, saying that's a threat to the mainland's national security. The Didi delisting comes as U.S. regulators move to tighten the rules around foreign companies planning to list stocks on American exchanges.

There are over 150 Chinese firms traded in the US market, including internet behemoths such as Alibaba, Baidu, JD.com and Pinduoduo, which also hold large amounts of user information. These firms require a deep understanding of the country's cybersecurity and data security laws and regulations, averting possible securities risks, Dong said. In its Dec 3 announcement, Didi said its US shares would be "convertible into freely tradable shares of the company on another internationally recognized stock exchange" after a shareholder vote sometime in the future, without providing details. There has been a rising tide of delistings among Chinese companies traded in the US amid growing bilateral tensions and toughening regulatory scrutiny from both sides. For most companies to delist from major exchanges, privatization would be offered by controlling shareholders to buy back shares from investors at a premium. According to market rules, the company can submit a voluntary delisting application to the New York exchange as soon as Dec 13 and withdraw its shares from the market 10 days later.

"After conscientious research, the company will start delisting operations on the New York Stock Exchange immediately and commence preparations to list in Hong Kong," Didi said on its social media account. A separate statement said U.S. shares would be converted into "freely tradable shares" on another "internationally recognized" exchange. Sources told Reuters last month that Chinese regulators had pressed Didi's top executives to devise a plan to delist from the NYSE due to concerns about data security.

The delisting is in line with an executive order signed by Trump after losing his bid for reelection. It bans Americans from investing in Chinese companies owned or controlled by the Chinese military and security services. To avoid being delisted, some companies will undergo a reverse split of their stock shares. This has the effect of combining several shares into one and multiplying the share price. For example, if a company executes a 1 for 10 reverse split, it could raise their share price from 50 cents per share to five dollars per share, in which case it would no longer be at risk of delisting. Some companies choose to become privately traded when they identify, through a cost-benefit analysis, that the costs of being publicly listed exceed the benefits.

Requests to delist often occur when companies are purchased by private equity firms and will be reorganized by new shareholders. Also, when listed companies merge and trade as a new entity, the formerly separate companies voluntarily request delisting. Companies must meet specific guidelines, called "listing standards," before they can be listed on an exchange.

Each exchange, such as the New York Stock Exchange , establishes its own set of rules and regulations for listings. Companies that fail to meet the minimum standards set by an exchange will be involuntarily delisted. For example, a company with a share price under $1 per share for a period of months may find itself at risk of being delisted. Sources told Reuters last month that Chinese regulators had pressed Didi's top executives to devise a plan to delist from the New York Stock Exchange due to concerns about data security. The company didn't say, for example, how precisely it planned to delist its shares from New York. One way might be to secure a listing elsewhere – which may be why the company said it plans to list in Hong Kong.