Here are your variable names. If it's not in this list and it's not a local variable, JAVA can't find it:
private String employeeName; //name of employee
private int hours; // when used double here errors occured.
private int rate;
private int pay;
Here's your function:
public double setHours()
{
hours worked = hours;
} // end method setHours
What is hours worked ? Is it a variable name? If so, it's two separate words, so you need an underscore to make it a legal variable name: hours_worked . However, hours_worked isn't a data member of the Employee class, so you are still going to get the error. You also have a function that says it returns a double not returning anything. set functions usually don't return anything. Are you sure you don't mean to do something like this?
public void setHours(int hours_worked)
{
hours = hours_worked;
} // end method setHours
Note that hours_worked is an int to match the type of hours .