What's the difference between a Salary and Hourly Employee?

Question

What's a difference between a Salary employee and an Hourly Employee? In terms of overtime pay?

Answer 1

A salaried employee gets paid for each week he is ready, willing and able to work; an hourly employee is paid only for each hour worked.

Either may get overtime depending on company policies; I am salaried, but DO get paid for overtime at a rate of my normal hourly rate plus $6.50 per hour. Most Hourly employees get paid "Time and a half" unless they work a lot, when it can go to "double time".

Ther Fair Labor Standards Act specifies that employees get time and a half for overtime worked. Some employees are "exempt" from part of the Fair Labor Standards Act (FLSA), typically meaning that they are salaried and are not required to be paid time and a half for overtime worked. Some salaried, non-exempt employees get a salary but also get paid overtime AS IF they were hourly.

Companies have a lot of leeway in the way they pay wages; it is usually only a big deal if a union is involved, in which case the union contract takes precedence over the FLSA (because it's more generous than FLSA). Some contracts provide that hourly employees who work on holidays are paid double time PLUS the normal holiday pay, ie triple time.

Answer 2

A salaried employee is paid an annual salary regardless of the number of hours worked. Sometimes, overtime is worked out as lieu time, or a bonus. that really depends on the employer. An hourly employee is paid a set wage for each hour of work. Overtime would be included as extra hours to be paid at the hourly wage.

Answer 3

Salaried Employees get a flat rate, monthly or even yearly. Overtime does not apply to salaried employees and reduces your calculated hour pay ever hour of overtime you work. If you work 40 hours or more, you will get the same pay.

Hourly employees, as it implies, get paid by the hour. Any hours over 40 per week, should get time and half (1.5).

Answer 4

A salary employee is paid a set wage I work 45 hrs a week and get paid a set pay every two weeks if I work 60 hours a week which sometimes happens I get paid the same amount
If I were to get paid hourly anything over 40 hrs I would also get paid overtime I hope I explained this o.k.

Answer 5

Salaried employees don't usually get overtime - they get the same pay every paycheck, no matter how long they were in the office (or out of the office). Hourly employees just get paid for the hours they were at work - and that usually includes time and a half for over time (hopefully, instead of usually maybe).

Answer 6

Salary employees get the same paycheck, regardless of the hours worked (plus or minus 40).

In some situations, depending on the company, a salary employee will get overtime.

When I worked for the electric company, the engineers (who were salary) got overtime when we were on project sites with contractors. When I bought my condo, I scheduled my contractors a few weeks prior so I could have the extra money for closing.

Hourly employees get 1.5 - 3x their base when they work overtime. At my current job, we have hourly employees who make over $100,000 a year.

Answer 7

Salaried don't get paid overtime, while hourly usually get time and a half for anything over 40 hours a week (sometimes more on holidays)

Answer 8

Hourly employs get time and a half for any hours worked over 40 in a 7 day period. Salary employees do not receive time and a half. They are often compensated with 'comp time' That is just a free day off that doesnt affect your vacation time and they are still paid for it. Thats how I was compensated when I was salary and put in over 40 hours a week. My boss kept track that for every 8 hours overtime I worked, he gave me a free day off.

Answer 9

Hourly employees are typically paid overtime for any hours beyond their usual work hours in any pay period. Salaried employees are usually compensated with "comp" time. (Extra time off.). Or if you're salaried, they can work you like a dog for what ever time you have to put in to complete the job and give you nothing in return.

Answer 10

salaried employees don't have an over-time usually. they get paid the same amount almost regardless how many hours they put in (which can be good if you don't work many hours and get paid a bunch). hourly employees get paid for each hour that they are on the clock...if it is more than 40 hours in a week they are paid more for the excess (usually at a rate of atleast 1.5 times their hourly wage).