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Disadvantages of salaried pay While hourly employees are often limited in the amount of time they work each week, salaried employees often work after hours or extra hours during the day regardless of how many hours they have worked that week already.
There is no cap and no additional compensation for more work.
Disadvantages of hourly pay Being paid hourly can potentially make your job or income more vulnerable.
If a company goes through tough times, your hours may be cut and your salary is not guaranteed.
The revised rules were blocked by a Texas court ruling on November 22, 2016, and they are still in limbo.
Benefits of hourly pay Hourly employees are paid for the time they work, with no exceptions.You can't negotiate whether your job is exempt or nonexempt.In May 2016, the Department of Labor (DOL) more than doubled the salary threshold for exempt employees to ,467 and made other changes.Just as you have to consider the responsibilities of the job and the company culture, you must also consider the way you will be paid before accepting any position.There are generally two options when it comes to compensation: salaried and hourly.Non-exempt employees are entitled to overtime pay, which is defined as time-and-a-half your pay rate if you work more than 40 hours in a single workweek. Exemption is currently determined by whether an employee makes at least 5 per week (,660 per year), is paid on a salaried basis and performs duties considered to be exempt.For example, if you perform any managerial duties, you are automatically exempt and your employer doesn't have to pay you overtime wages.Benefits of salaried pay A salaried employee is paid regularly and at the same rate at each pay period.Regardless of whether you work 40 or 30 hours or if your company is closed for the holidays, you will be paid. Full-time salaried employees are also more likely to receive benefits, including health care, retirement contributions and paid vacation time.If your employer wants you to work more time, they have to pay you for it.As mentioned earlier, the overtime rate is currently set at time-and-a-half your normal hourly rate, but many employers pay double time for holidays.