Paul on Fri, 30 Aug 2002 08:30:08 +0200


[Date Prev] [Date Next] [Thread Prev] [Thread Next] [Date Index] [Thread Index]

Re: [PLUG] OT: salary related question




I've always considered hourly pay to be just that and an annual salary to be just that, meaning that they are apples and oranges. Hourly employees get paid for their time which can vary and so will their pay. Salaried employees get paid an anual salary that is divided by the the number of pay periods in the year, usually 52 (weekly), 26 (bi-weekly), 24(semi-monthly) or 12 (monthly). It doesn't matter how many or how few hours they work, so the hourly wage is just theoretical (just as the annual wage is just theoretical for the hourly employee).

From what I've read, unless employees perform management-type duties, they are entitled to overtime compensation, even if they are on salary. And it doesn't depend on title; it depends on the actual duties performed. So, just as multiplied hourly pay is the anticipated yearly pay for an hourly employee, anual salary is the anticipated yearly pay for a salaried employee. It might depend on the state that you live in, but I read that the government will enforce overtime compensation, even in the form of back pay, if the employee bothers to make a claim. And that claim is based on the anual salary divided to determine the equivelent hourly pay.

I think one of the differences is that hourly people tend to get compensated with overtime pay, while salaried employees tend to get comp time. I'd rather have comp time, but it's almost a rip off because working an extra two days doesn't by you three days off. Still, time is more valueable than a little bit of money, unless your really short on cash.

There may be a difference as far as bonuses go too. (The only bonuses I've ever gotten were only enough to buy dinner for two at Burger King, *if* the coupons hadn't expired.)


_________________________________________________________________________ Philadelphia Linux Users Group -- http://www.phillylinux.org Announcements - http://lists.netisland.net/mailman/listinfo/plug-announce General Discussion -- http://lists.netisland.net/mailman/listinfo/plug