One major difference is that hourly employees are entitled to overtime pay of at least 1.5 x their hourly rate for each hour worked over 40 hours in the workweek–but only some salaried employees are entitled to overtime pay.
The term “salary” generally refers to a fixed or guaranteed amount per week or other payroll period, such as biweekly, semimonthly or monthly. Contrary to popular belief, being paid a salary does not automatically exempt a worker from overtime pay. Exemption depends on whether the employee’s work meets one of the exempt categories under federal/state wage-hour law.
Another good tip from The American Institute of Professional Bookkeepers
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on Wednesday, May 23rd, 2007 at 12:23 pm and is filed under Payroll.
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One major difference is that hourly employees are entitled to overtime pay of at least 1.5 x their hourly rate for each hour worked over 40 hours in the workweek–but only some salaried employees are entitled to overtime pay.
The term “salary” generally refers to a fixed or guaranteed amount per week or other payroll period, such as biweekly, semimonthly or monthly. Contrary to popular belief, being paid a salary does not automatically exempt a worker from overtime pay. Exemption depends on whether the employee’s work meets one of the exempt categories under federal/state wage-hour law.
Another good tip from The American Institute of Professional Bookkeepers
This entry was posted
on Wednesday, May 23rd, 2007 at 12:23 pm and is filed under Payroll.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
June 8th, 2007 at 12:23 pm
Does a salary person have to work at least a 40 Hour week before they can become salary? Are they entitled to a week paid vacation? Do you have to pay over time to a salary employee? Can you give them time off if they work over time instead of paying them over time?
I would appreciate if you can send the policy on salary employees. Thanks
Deborah