Salary vs. Hourly Pay: What's the Difference?

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Salary vs. Hourly Pay: What's the Difference?

//business-finance.news-articles.net/content/202 .. /salary-vs-hourly-pay-what-s-the-difference.html

Published in Business and Finance on Monday, January 13th 2025 at 18:20 GMT by Investopedia
^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

The Fair Labor Standards Act determines whether U.S. workers can be paid a salary or if they must be paid an hourly wage. It affects more than just their paychecks.

The article from Investopedia titled "Salary vs. Hourly: How Benefits and Laws Differ" discusses the key distinctions between salaried and hourly employment in terms of compensation, benefits, and legal protections. Salaried employees receive a fixed annual salary regardless of hours worked, which often implies a certain level of job security and benefits like health insurance, retirement plans, and paid leave. However, they are generally exempt from overtime pay under the Fair Labor Standards Act (FLSA), meaning they do not receive extra compensation for working more than 40 hours a week. Conversely, hourly workers are paid for each hour worked, with the potential for overtime pay at time-and-a-half for hours over 40 in a workweek. Hourly employees might not always receive the same level of benefits as salaried employees, and their income can fluctuate based on hours worked. The article also touches on how these differences affect job stability, work-life balance, and the legal rights concerning minimum wage, breaks, and other labor laws, highlighting the trade-offs between the two employment types.

Read the Full Investopedia Article at:
[ https://www.investopedia.com/articles/personal-finance/031115/salary-vs-hourly-how-benefits-laws-differ.asp ]