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Salaried employee

According to federal laws laid out in the Federal Labor Standards Act (FLSA), salaried workers include any employees who are paid a predetermined amount of money that is not impacted by their quality or quantity of work. Workers who are paid on a salary basis generally have exempt status. While each state’s department of labor has its own definition of exempt employees, for the most part an employee receives exempt status if they:

  • Earn $455 per week or more,
  • Are guaranteed a fixed salary, and
  • Work in a managerial, executive, or administrative role (regardless of job title)

 Unlike most hourly employees, who must be paid time-and-a-half for each hour worked over 40 hours a week, full-time workers performing exempt roles are generally not entitled to overtime pay, regardless of their number of hours worked. Salaried employees are also generally entitled to a full day’s pay regardless of the number of actual hours the employee worked in a day

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