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The Difference Between Salary and Wages

December 28, 2011

A key difference between a salaried and a waged employee is that an hourly employee, who is paid a wage, is entitled to overtime of 1.5-times their hourly rate (for each hour over 40 hours / workweek). Only some salaried employees however are entitled to overtime pay.

“Salary” refers to a fixed or guaranteed amount per pay period, it does not however automatically exempt a worker from overtime pay (Exemption depends on whether the employee’s work meets exempt categories under federal/state law).

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From → Payroll, Tips

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