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How does annual salary vs hourly work?
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amother




Springgreen
 

Post Fri, Oct 15 2021, 2:59 pm
none of these answers make sense op
salaried is much better
im salaried part time
I work 9 to 3 4 days a wk for a total of 24 hours
my hourly pay is 32 an hour so I make 768 a week
I took off a day this wk I still got my 768 paycheck
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amother




Peach
 

Post Fri, Oct 15 2021, 3:15 pm
If you work the same hours everyday it doesn’t make a difference. A salary is only better if you plan on taking advantage of your boss.
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Amarante




 
 
 
 

Post Fri, Oct 15 2021, 3:18 pm
amother [ Springgreen ] wrote:
none of these answers make sense op
salaried is much better
im salaried part time
I work 9 to 3 4 days a wk for a total of 24 hours
my hourly pay is 32 an hour so I make 768 a week
I took off a day this wk I still got my 768 paycheck


I posted regarding legal distinction between exempt and non-exempt workers.

Just because one is on a theoretical salary, it doesn’t mean that one has unlimited paid time off.

I have always been exempt and paid a salary but I had a set number of days for which I was paid. If I exceeded those, there would have been repercussions. And typically your time off is tracked because one is entitled to accrued vacation time when you leave a company.

People can be paid hourly and still get paid time off.

There seems to be some confusion about flexibility in hours which is sometimes a benefit of working in an exempt position. Since you are not paid overtime, most employers are flexible about letting people take take off here and there because they are expected to work more than 40 hours a week if necessary without additional pay so it is a quid pro quo.

However some people who are paid hourly might also have some flexibility except that their hours worked need to be tracked. In other words, they would be allowed to take time for a medical appointment with the understanding that they would make up the hours. When you are exempt, it is assumed that you would always be making up hours since people generally don’t leave at the stroke of five when they are exempt if there is work that needs to be done. If you are non exempt, you need to get permission from your supervisor to work additional hours because you will be paid for those hours and it would probably be overtime if you normally work 30 hours.
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amother




Cadetblue
 

Post Fri, Oct 15 2021, 3:27 pm
Ok there’s a lot of misconception here. Assuming you are in the US this may vary in other states but for sure in NY and NJ this is the case:

If you work more than 40 hours a week you may be eligible for overtime pay which is time and a half. This has nothing to do with whether or not you are a salaried or hourly employee and has everything to do with whether you are an exempt or non exempt employee. If you are a professional such as an accountant even if you are working 80 hours a week as a hourly employee you are not eligible for time and a half but of course you get your regular hourly rate for all hours worked. If you are a secretary and are salaried and end up working 80 hours a week they need to pay you that extra time and a half on top of your salary.

So if you tend to be a workaholic and tend to work crazy hours then it’s to hour before to be hourly because at least you get paid per hour while if you are salaries you don’t get paid for that extra time. If you work less than 40 Hours it shouldn’t matter. If you work less than your contracted hours because you are salaried and it won’t cut into your paycheck then that is stealing
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amother




Cadetblue
 

Post Fri, Oct 15 2021, 3:30 pm
Cookiegirl wrote:
If you are not doing a different job, you may not be able to transition to a salaried role. There are certain jobs that are considered "exempt" (salaried) vs. "non-exempt" (hourly-eligible for Overtime) and it has to do with your level of independence/control in your job responsibilities. This is governed by the Federal Fair Labor Standards Act (assuming you are in the US) and it is in force to protect employees who are eligible to get paid overtime from their employers changing them to salary and thereby remove their ability to collect overtime pay. If you never work more than 40 hours per week, this may be a moot point, but depending on how likely your employer will be audited by the Labor Dept, salary may not be an option. If you get promoted, and get more independence and responsibilities, then salary may be on the table
non exempt can still get a salary but any hours worked over the 40 hours need to get additional compensation on top of the 40 hours. Not sure if they are entitled just to the “half” portion of “time and half” or if they are entitled to the full pay for that period
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amother




Cadetblue
 

Post Fri, Oct 15 2021, 3:33 pm
Cookiegirl wrote:
As far as the "benefits" of salary - mostly it's about not having to clock in- but you need to do your job, no matter how many hours it takes. No one will police you to clock in or out if you need to take a personal call or attend an appointment, and you will get paid the same amount weekly/bi-weekly even if you put in a bit more or a bit fewer hours.
this
But be aware that you are not required legally to put in more hours than what was agreed upon in your contract. An old boss of mine tried to bully me saying that I’m salaried so I need to work until the job gets done even though I was only contracted to work 38 Hours a week. I never took advantage though and always made to work at least 38 hours
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amother




Cadetblue
 

Post Fri, Oct 15 2021, 3:37 pm
amother [ Beige ] wrote:
The reason I asked to switch to salary is because I had to cut down my hours but couldn't afford to cut down my paycheck. I kept the same workload and logged in from home when necessary so my boss was okay with it. Eventually they hired more girls that took over some of my work and by now I make a nice salary for not that many hours. I believe that is why ppl are telling you that...
if you are contracted to work a certain number of hours it’s stealing to work less even if you are still getting the same work done
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Amarante




 
 
 
 

Post Fri, Oct 15 2021, 3:39 pm
amother [ Cadetblue ] wrote:
non exempt can still get a salary but any hours worked over the 40 hours need to get additional compensation on top of the 40 hours. Not sure if they are entitled just to the “half” portion of “time and half” or if they are entitled to the full pay for that period


It is a distinction without a difference in the business world.

Secretaries (for example) are non-exempt employees legally. Typically they are told their salary is $x dollars per week and it isn't expressed as an hourly wage.

However, they are entitled to overtime so if they work more than 40 hours per week (or 8 hours per day in California), they will receive applicable overtime. Their "hourly pay" is divided by their "weekly salary" divided by 40. For example if a secretary makes $800 per week, her hourly wage is actually $20 per hour and she would be paid $30 for each overtime at 1 1/2 and then $40 per hour when it exceeds a certain statutory ceiling per period.

An legally exempt employee doesn't receive any additional pay for hours worked over 40. However most corporations do track their paid time off so there isn't an unlimited amount one can take. However, if one regularly works more than 9-5, most employers will cut an exempt employee slack to take off a few hours here and there without problems so long as they are doing their work including willing to work as many hours as necessary when there is a need.
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amother




Aquamarine
 

Post Fri, Oct 15 2021, 3:42 pm
[quote="amother [ Cadetblue ]"]if you are contracted to work a certain number of hours it’s stealing to work less even if you are still getting the same work done[/quote

No, it isn’t. That’s the benefit of salary. I made it very clear to my boss that while I’m happy to work the full hours when I’m able to, if I need to work less due to a child being sick/having vacation or a school function etc - and I get paid less because of it - it simply isn’t worth it for me to work. I need to make a minimum of my salary every single week regardless of exact hours worked if I’m going to work. He agreed. So yes, I do leave for therapy appointments. And I do work fewer hours mid winter and chanuka and yomim Tovim. I still get paid. And it isn’t stealing
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amother




Cadetblue
 

Post Fri, Oct 15 2021, 3:46 pm
Amarante wrote:
It is a distinction without a difference in the business world.

Secretaries (for example) are non-exempt employees legally. Typically they are told their salary is $x dollars per week and it isn't expressed as an hourly wage.

However, they are entitled to overtime so if they work more than 40 hours per week (or 8 hours per day in California), they will receive applicable overtime. Their "hourly pay" is divided by their "weekly salary" divided by 40. For example if a secretary makes $800 per week, her hourly wage is actually $20 per hour and she would be paid $30 for each overtime at 1 1/2 and then $40 per hour when it exceeds a certain statutory ceiling per period.

An legally exempt employee doesn't receive any additional pay for hours worked over 40. However most corporations do track their paid time off so there isn't an unlimited amount one can take. However, if one regularly works more than 9-5, most employers will cut an exempt employee slack to take off a few hours here and there without problems so long as they are doing their work including willing to work as many hours as necessary when there is a need.
thanks for clarifying that non exempt are indeed entitled to full time and a half above 40 hours (or applicable OT threshold in your state) and not most the 1/2 portion. This is what I thought. Many employees are not aware of this and work many hours overtime in non professional positions (non exempt) and get a salary so they think they arnt eligible for OT. This is wrong and employers are taking advantage of this ignorance
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amother




Cadetblue
 

Post Fri, Oct 15 2021, 3:48 pm
[quote="amother [ Aquamarine ]"]
amother [ Cadetblue ] wrote:
if you are contracted to work a certain number of hours it’s stealing to work less even if you are still getting the same work done[/quote

No, it isn’t. That’s the benefit of salary. I made it very clear to my boss that while I’m happy to work the full hours when I’m able to, if I need to work less due to a child being sick/having vacation or a school function etc - and I get paid less because of it - it simply isn’t worth it for me to work. I need to make a minimum of my salary every single week regardless of exact hours worked if I’m going to work. He agreed. So yes, I do leave for therapy appointments. And I do work fewer hours mid winter and chanuka and yomim Tovim. I still get paid. And it isn’t stealing
if you have a private arrangement with your boss and he agreed to pay you for your full salary even if you can’t always meet your hours then that’s totally fine of course. Those who take advantage and arnt careful about lunch breaks and come half hour late and leave half hour early because they don’t need to clock in and will get the same salary then there stealing
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amother




Peach
 

Post Fri, Oct 15 2021, 4:24 pm
[quote="amother [ Aquamarine ]"]
amother [ Cadetblue ] wrote:
if you are contracted to work a certain number of hours it’s stealing to work less even if you are still getting the same work done[/quote

No, it isn’t. That’s the benefit of salary. I made it very clear to my boss that while I’m happy to work the full hours when I’m able to, if I need to work less due to a child being sick/having vacation or a school function etc - and I get paid less because of it - it simply isn’t worth it for me to work. I need to make a minimum of my salary every single week regardless of exact hours worked if I’m going to work. He agreed. So yes, I do leave for therapy appointments. And I do work fewer hours mid winter and chanuka and yomim Tovim. I still get paid. And it isn’t stealing


Well it would depend. Do you do this daily, a few times a week, a few times a month. Do you ever make up the work?
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amother




Wallflower
 

Post Sat, Oct 16 2021, 8:33 pm
If you are salaried, you're still paid for days you don't have to come in to work (legal holidays or Yom tov, depending where you work)
My employees worked 6 days in September and got paid for a full month.
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amother




Beige
 

Post Sat, Oct 16 2021, 11:34 pm
amother [ Cadetblue ] wrote:
if you are contracted to work a certain number of hours it’s stealing to work less even if you are still getting the same work done


Yes, obviously I wasn't contracted to a certain amount of hours and made an agreement with my boss what my new hours should be.
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amother




Seafoam
 

Post Sun, Oct 17 2021, 12:25 am
amother [ Wallflower ] wrote:
If you are salaried, you're still paid for days you don't have to come in to work (legal holidays or Yom tov, depending where you work)
My employees worked 6 days in September and got paid for a full month.


Most jobs have PTO days (paid time off) that are limited to a certain amount. These usually cover holidays, vacation and sick days. PTO is given to exempt and non-exempt employees

There are two separate conversations going on here because there are different terms that keep getting confused.

Salary vs Hourly is usually (as most here are mentioning) just another term for Exempt vs Non-Exempt

Exempt means that they are not eligible for overtime. They are given a set salary for set hours, but if they work over those hours then the company does not need to pay for that extra time. They can’t require you to work past your set hours, in theory, but if you have to finish your work and the only way to do that is work later than your supposed to, that’s what people do (since they know they have to complete their work and don’t want to get fired)

Non-Exempt means that they are eligible for overtime. They are given a set salary for set hours, and if they put in any time past those set hours then they get paid for it, and at a higher rate (sometimes with a 50% increase, sometimes with a double increase to their “hourly” rate). The company will keep track of the hours they work. Typically, if they work less than the set hours they are supposed to, then they will either have the time they’re missing unpaid or have it taken out of their PTO. A lot of jobs don’t require non-exempt employees to keep to the set time schedule as long as they put in the hours. So if you are 9-5 but come in at 10 one day, you will still fulfill your hours by staying till 6 (or making up that time throughout the pay period).

The benefits available to employees who meet certain criteria (like full-time for example) apply whether you are exempt or non-exempt. If you can get health insurance through your job if you are considered full time, then being non-exempt doesn’t change that (as long as your set hours are enough to be considered full-time)


Another way people might define “hourly”, is someone who has a job that is paid by the hour and not given an annual set salary. For example, a cleaning lady who earns $20 an hour. You ask her to have a schedule of 5 hours per day, 3 times a week. If she doesn’t show up for some of that time, she doesn’t get paid. If she works more hours, she gets paid her regular rate for those extra hours. This is just how people will describe certain jobs where they aren’t earning a specific amount annually but rather hourly and it’s dependent on how many hours they work, so the overall salary can fluctuate. You don’t usually get any paid time off in these type of jobs. These jobs typically don’t come with employee benefits and are not usually present in more “corporate” type professional settings

So the question to OP is which term specifically is she referring to? Because they aren’t the same and you will get different responses for each one.

For exempt vs non-exempt, it is usually to your benefit to be non-exempt. The perks remain the same with an added bonus- you get paid for extra time you work. It also motivates the company to not make you work extra time since they don’t want to pay you overtime. So where they might not have hesitated to ask you to stay late one night, as a non-exempt employee they are much more motivated to let you leave on time.

For salary vs “hourly”, it’s better to be salaried, since you get benefits like paid time off, maybe other benefits like matching 401ks and insurance, and a more stable income.
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