Hourly and salaried employees are entitled to receive payment for services rendered to their employers. While hourly employees are generally paid for their actual hours worked, salaried employees are paid a set wage each pay date. Consequently, the labor laws concerning salaried employees vary from hourly employees'.
Salaried employees generally include executive, administrative and professional employees within an organization. This includes teachers, elementary and secondary school administrative personnel, outside sales staff and employees in specific computer-related positions. The employer generally determines the salaried employee's pay frequency. Typically, salaried employees are paid biweekly, semi-monthly or monthly.
Salaried employees must be paid not according to how many hours actually worked, but according to the actual amount agreed upon by the employee and her employer. For recording purposes, some employers may require the salaried employee to keep track of her hours. However, she is not usually required to punch a clock or complete weekly time sheets. For example, if it is agreed that she works 45 hours per week for $1,000 to be paid biweekly, she should receive this gross amount every payday.
Unlike the hourly employee who qualifies for overtime pay if he works more than 40 hours per week, the salaried employee does not generally receive overtime. If the salaried employee is performing the responsibilities of a salaried employee that is exempt from overtime pay (e.g. a manager or supervisor), the employer is under no obligation to pay him overtime pay for excess hours worked.
The salaried employee is often entitled to standard company benefits such as sick and vacation days. If he calls in sick or takes vacation days, he is paid for the full day, provided he has the hours available. If he calls in sick or takes personal days off but lacks the hours, the employer does not have to pay him for these days.
If the salaried employees arrives to work late or leaves work ahead of schedule, he is still to be paid for a full day's work. However, if he performs no work in a given week, then he should not be paid for that week. If he is a new hire, he is to be paid initially for the work performed from his start date through the pay period end date. If he has been terminated, he is to be paid for work performed from the start of the pay cycle through to his termination date. Depending on when he is hired or terminated, his pay in these situations may be prorated.
Read More: Can an Employer Make You Work Seven Days a Week?
Grace Ferguson has been writing professionally since 2009. With 10 years of experience in employee benefits and payroll administration, Ferguson has written extensively on topics relating to employment and finance. A research writer as well, she has been published in The Sage Encyclopedia and Mission Bell Media.