Salaried Employee

Who is a Salaried Employee?

A salaried or exempt employee is someone who is paid a fixed amount regardless of how many hours they work each week. Salaried employees receive a salary for 40 hours a week, even if they work fewer or more hours. They are not offered any overtime pay for working more than 40 hours per week.

Definition of Exempt Employee

The Fair Labor Standards Act (FLSA) states that to be exempt, an employee must (i) be paid on a salary basis, (ii) receive at least $23,600 per year ($455 per week), and (iii) do exempt job duties.

How Many Hours Does a Salaried Employee Work?

While working 40 hours per week is considered full-time, the salaried employee rarely works more than 45-50 hours per week unless the job is poorly designed, where they need to work 55-60 or more hours.

Is It Legal to Work 60 Hours a Week on Salary?

It is legal to work 60 hours per week on salary if an employee is exempt from the FLSA and any union, local, or state overtime laws.

Can Salaried Employees be Forced to Work Weekends?

According to the FLSA, employers don’t need to pay salaried employees for weekend work. Employers typically expect work to be completed well and on time. And if that necessitates an employee working on the weekend, then the employer must communicate that condition clearly, and the employee must agree upon it at the time of hire.

Can Employers Deduct Pay From a Salaried Employee?

Yes, employers can deduct pay from a salaried employee on some accounts.

Salaried Employees vs Hourly Employees