Salaried v/s Hourly employee classification

melba · August 2006

Can someone give me a quick, concise rule on how to determine whether a non-exempt employee should get paid hourly or salary? Does it revolve around whether or not he or she clocks in and out, or on the duties the employee performs, or on something else altogether? Thanks.

NaeNae55 · August 2006

I have been sitting here for several moments trying to figure out any possible way to narrow it down to a quick, concise rule. Sorry. It ain't gonna happen. I can tell you that if an employee qualifies as non-exempt, it is your choice to pay them by the hour or by salary, as long as they still get their overtime pay. Most companies pay hourly as it is easier to calculate and easier to avoid mistakes.

I suggest you got to dol.gov and read the rules laid out by the Department of Labor. Once you have done that, if you need clarification on a particular point, come back and ask. We'll see if we can help you then.

Good luck!

Nae

LarryC · August 2006

Melba, I agree with Nae. It's hard to summarize whether someone should be classified as nonexempt or exempt. The determination on whether a nonexempt employee should get paid hourly or salary is pretty much up to the employer with the overtime as per Nae.

E Wart · August 2006

Your choice on how they are paid (salary or hourly), but you do need to MAKE SURE that records are kept, even if salaried. Also, often if paid salary you will find that they aren't paid ot when they should be. You could be fined for this. Also, their "overtime pay" could change because of their "Base pay calculations". (Make sure that you always "quote" their salary in hourly terms, even if paid a forcast weekly pay.
It is just plain easier to do the hourly, even though for some reason non-exempt employees like to be paid salaried. (I bet a lot of us salaried employees would LOVE to get paid hourly.)
E Wart

Peyton Irby MS · August 2006

I agree with the other posts. There is no rule on whether an employee is to receive a salary or an hourly wage. However, time records must be maintained and OT paid at the appropriate rate for non-exempt employees. Generally, employers use the method that is easier for them in performing OT calculations,etc.

Peyton Irby
Editor, Mississippi Employment Law Letter
Watkins Ludlam Winter & Stennis, P.A.
(601) 949-4810
[email]pirby@watkinsludlam.com[/email]

Salaried v/s Hourly employee classification

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