• 24 Jul, 2024

Hourly vs Salaried, Which One Is The Best? | Making Money

Hourly vs Salaried, Which One Is The Best? | Making Money

Most jobs are broken down into hourly or salaried. So often people think everything would be better if they were in the other category. Today we will cover the positives and negatives of both hourly and salaried employment.

  • we discuss the differences between being paid hourly versus on a salary. These two methods of compensation are incredibly common, but it is often surprising how little people know about the good and bad aspects of these two methods. The Fair Labor Standards Act (FLSA) sets forth two terms that are critical to understanding the difference between hourly and salaried employees: exempt and non-exempt. Hourly employees are not eligible for overtime or classified as exempt, while salaried employees are eligible for overtime and must meet certain requirements such as earning at least $684 per week, working in an executive position, having authority to make significant decisions, and working in a managerial role. One of the pros of being an hourly employee is that you can earn more pay for additional hours worked, including overtime and holidays. However, if you must miss work or leave early, that time is not compensated, and you cannot easily make up for lost pay. On the other hand, one of the benefits of being salaried is that you have a consistent income, regardless of the time you may need to take off for personal obligations such as family or doctors' visits. However, salaried employees may have certain expectations around work hours and may not be compensated for going above and beyond in terms of hours spent at work. Ultimately, the choice between being paid hourly or on a salary depends on personal preference and the type of work being done.

  • In this section, the speaker discusses the benefits and negatives of being hourly versus salaried. The decision of whether to be an hourly or salaried employee is largely determined by the job and the company's use of that job. If one's preference is for a specific classification, it may be possible to work towards that type of position. The speaker encourages viewers to consider which classifications align best with their preferences and work towards achieving a better fit.