Salaried Pay

What Does Salary Mean?

A salary is the income a salaried employee receives from their employer in return for their work. It’s paid at a fixed rate (usually biweekly or monthly). However, a salary is typically talked about as a full sum. For example, someone would usually say they earn $60,000 per year, not $5,000 per month.

How Does Salaried Pay Work?

Salary pay means the individual 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.

What Is an "Exempt Employee"?

Exempt positions are exempt from the rights and regulations under the Fair Labor Standards Act (FLSA), including minimum wage and overtime. According to the 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

Salaried vs. Hourly Employee: What's the Difference?

A salaried employee receives a set amount of pay, which doesn’t change according to how many hours they work. An hourly employee is paid for the actual amount of hours they work. Hourly workers are protected by the FLSA and are entitled to overtime pay if applicable.

Do Salaried Employees Have to Clock In?

Salaried employees don’t legally have to clock in, and most employers don’t require it. This is because salaried employees are paid for the work they do, not the number of hours in which they do it. Additionally, many salaried workers carry out odd and sporadic hours both at the office, at home, and while traveling for business.

What Are the Labor Laws for Salaried Employees?

The US Department of Labor enforces over 180 laws protecting both salaried and hourly employees, including worker’s compensation, occupation and safety laws, union protections, FMLA, and more.

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

The Bureau of Labor Statistics reports that US workers across industries work 41.9 hours per week on average.
Some employers may expect as many hours of work from their salaried employees as it takes to perform the job well. However, new overtime laws now ensure that salaried employees are fairly compensated for working more than their agreed hours.

Beginning January 1, 2025, salaried employees who earn less than $1,128 will also be eligible for overtime pay. As an employer or HR professional handling payroll, this is something to keep in mind.

Do Salaried Employees Get Paid If They Don’t Work?

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 doesn’t work the entire week.

Generally, if a salaried exempt employee doesn’t work in a particular week, that employee doesn’t 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 or personal time.

Can Salaried Employees Be Forced to Work Weekends?

The FLSA doesn’t require exempt 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 or vacation.
• 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. Deductions can be made against exempt employees for one or more full days of leave for personal reasons.
• Offset Costs: Deductions can be made to offset fees an employee may receive as part of jury service or military pay.
• Accrued Leave:  If an employer grants sick, vacation, or 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.