Salaried Employee

How Does Salary Pay Work?

A salaried employee is someone who receives a fixed amount of pay regardless of how many hours they work each week. This means a salaried employee is paid for 40 hours a week, even if they work fewer hours.

Additionally, overtime pay of time-and-a-half is not usually offered for working more than 40 hours per week.

What Does "Exempt Employee" Mean?

According to the Fair Labor Standards Act (FLSA), an exempt employee must:

• Be paid at least $23,600 per year ($455 per week)
• Be paid on a salary basis
• Perform exempt job duties

» Learn More: What Is an Exempt Employee?

Salaried vs. Hourly: What's the Difference?

While a salaried employee is someone who receives a fixed amount of pay regardless of how many hours they work each week, an hourly employee is an employee who is paid for the actual amount of hours they work. Hourly workers are usually entitled to overtime pay if applicable, whereas overtime pay is not typically offered for salaried employees who work over 40 hours per week.

Do Salaried Employees Have to Clock In?

Salaried employees do not legally have to clock in and most employers don’t require it. This is because salaried employers are often offered a higher level of trust and accountability than hourly-paid employees. Additionally, many salaried workers carry out odd and sporadic hours both at the office, at home, and while traveling for business so it can be burdensome to record time on and off the job.

What Are the Labor Laws for Salaried Employees?

The U.S. Department of Labor “administers and enforces more than 180 federal laws” that “cover many workplace activities” and The Fair Labor Standards Act (FLSA) covers “overtime, minimum wages, child labor protections, and the Equal Pay Act” for salaried employees.

How Many Hours Does the Average Person Work?

The Bureau of Labor Statistics reports that roughly 9 million American employees in all industries work 60 or more hours per week. The average salaried employee, however, typically does not often exceed 45 to 50 hours per week.

How Many Hours Can a Salaried Employee Be Forced to Work?

Some employers may expect as many hours of work from their salaried employees as it takes to perform the job well, but exempt salaried employees have typically contracted to work between 40 and 50 hours per week. Additionally, their pay cannot be deducted by their employer if they work less than 40 hours per week, or the employee may be seen as nonexempt and entitled to overtime compensation when working more than 40 hours a week.

Do Salaried Employees Get Paid If They Do Not Work?

Generally, if a salaried exempt employee does not work in a particular week, that employee does not have to be paid for that week. However, when taking a partial day off, salaried exempt employees must receive a full day’s pay. Additionally, if the employee takes personal time (not for sickness or disability), then that time may be deducted from the employee’s allotted vacation/personal time.

Employers can deduct from a salaried exempt employee’s salary in certain instances. For example, salary can be deducted during the first and last week of employment if the employee does not work the entire week.

Is It Legal to Work 60 Hours a Week on Salary?

If an employee is exempt from FLSA and any state, local, or union overtime laws, then it is legal to work 60 hours a week on salary. Some employers do pay exempt employees for overtime work through time-and-a-half, bonuses, or extra time off.

Do Salaried Employees Get Overtime?

Most salaried employees are not paid overtime pay, regardless of how many hours they work in a week. A salaried employee may refuse to work overtime, but it may violate the set terms and conditions of employment and the employer may terminate an employee for the refusal.

Can Salaried Employees Be Forced to Work Weekends?

The FLSA does not require salaried employees to be paid for weekend work. Employers typically require work to be done well and in a timely fashion, and if that requires an employee to work over the weekend, then that condition should be clearly communicated and agreed upon between employer and employee at the time of hire.

Can You Deduct Pay From a Salaried Employee?

Employers can deduct the following items from a salaried employee’s paycheck:

• Personal Absences: The absence may be for any reason related to the employee’s personal needs, including family needs, vacation, etc.
• Sick or Disability Absences: Sick-day policy is up to the employer and the deduction can be made in advance or after sick leave is exhausted.
• Accrued Leave: If an employer grants sick/vacation/personal leave, then they may deduct the accrued leave.
• Safety Violations: An employer may deduct for things such as smoking in a prohibited area, playing with safety devices, or ignoring procedures.
• Disciplinary Suspensions: An employer may deduct for written rule policy infractions that are unrelated to performance or attendance.