What does it mean to be salaried, and how is it different from being paid hourly?

[winget]

An employee asked why their offer says "salaried exempt" and what that means for overtime. A salaried employee gets a fixed amount each pay period regardless of hours worked, and exempt status means they don't qualify for overtime under FLSA. How do you explain this simply to new hires who have only worked hourly jobs before?

 

[Henry]

Being salaried means earning a fixed annual pay regardless of hours worked. Hourly employees are paid per hour worked, often with overtime eligibility, while salaried roles offer consistent pay and sometimes exempt status.