For the most part, a salaried employee has exempt status when it comes to overtime pay, minimum wage, and other key labor regulations. That is not a hard-and-fast rule, however. An employee receives exempt status based more on their specific job duties than on whether they’re paid on a salary basis. The decision on whether to pay specific employees a weekly or bi-weekly salary or an hourly rate lies with an employer’s payroll department.
Non-exempt workers who are paid on a salary basis are subject to all standard rules that apply for a 40-hour workweek. That includes Fair Labor Standards Act (FLSA) regulations and any state or local laws governing number of hours worked. Salaried, non-exempt employees who work more than 40 hours in a week, for instance, are subject to the same overtime rules as an employee whose paycheck is determined by how many hours per week they work.
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