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Old 12-02-2019, 06:47 PM   #1
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Default Salary verses hourly

I'm currently an hourly employee. My workplace is talking about making me salary after the first of the year. What is the upsides and downsides to salary work? I'm kind of sad that I wouldn't be able to make overtime. But, I think based on what I make I would get a raise with salary. But my work is cracking down on overtime anyway. What else is there to consider? Thanks, Kit
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Old 12-02-2019, 10:35 PM   #2
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Default Re: Salary verses hourly

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Originally Posted by SlumberKitty View Post
I'm currently an hourly employee. My workplace is talking about making me salary after the first of the year. What is the upsides and downsides to salary work? I'm kind of sad that I wouldn't be able to make overtime. But, I think based on what I make I would get a raise with salary. But my work is cracking down on overtime anyway. What else is there to consider? Thanks, Kit
Be careful they aren't making you salary in an effort to make you work loads of overtime with no pay. This is a big red flag that they are doing that. There was a law passed, but then overturned, that stipulated employees must meet certain requirements to be salaried so that they weren't abused in this way. One of those requirements was the annual salary. If you're going to be salary I think the federal cut off (under the law at the time) was $35,000 annually, and I also think you had to at least be a manager-level employee or meet other requirements like a specialized skill set - like an engineer, for example.

So while a pay raise is great, make sure it's comparable to whatever increase in duties they are proposing, and that they aren't doing this in an effort to abuse your schedule.
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Old 12-02-2019, 10:43 PM   #3
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Default Re: Salary verses hourly

Hi Slumberkitty!

Would you get any additional benefits as a salaried employee? Most of the jobs I've had (since college) have been salaried, so I'm not sure, but perhaps the benefits are better?

I think how being salaried versus hourly affects you might come down to the culture of the place you're working and your boss. Will you be in the same job? Are there a mix of salary/hourly employees now that you could look at, to see if it affects the time they put in?

Where I'm at, we're all salaried at this point (I believe a few people were contractors, so paid hourly, at one point, but they've all been brought on now.)

We have an incredibly amount of flexibility - so we might work extra hours during an important crunch to make a deadline, but we also have downtime without as much to do (to do training, for example), and flexibility to run out during the day for things like doctor's appointments. Nobody is keeping track of how many hours we're working each day, or making sure we "make up" the time that we're out, we just focus on getting the work done.

We sometimes have events that hourly contractors (who are employed through a contracting company) aren't allowed to attend - I don't fully understand how/why that works, it comes from our leadership (not my immediate manager). But, since you're already hourly, you're probably aware if there are things like that going on around you - these weren't secret or hidden or anything.

And... I seem to remember (from a long time ago) someone telling me that they actually made *less* as a salaried employee, versus hourly contractor. Because they had benefits (paid vacation, sick time, subsidized insurance, etc) as an employee, the actual take-home pay was less. Some of the people on that team chose to remain hourly because they prioritized the pay. But again, I'm not sure if that's the same at the place where you're at...

I hope this helps! I think it's a little hard to know, since it may be very dependent on the individual company... but hopefully if they decided to do this, you'd get more information about pay/benefits and be allowed to choose whether or not to accept the offer.

Good luck!
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Old 12-03-2019, 02:41 AM   #4
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Default Re: Salary verses hourly

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Originally Posted by guilloche View Post
Hi Slumberkitty!

Would you get any additional benefits as a salaried employee? Most of the jobs I've had (since college) have been salaried, so I'm not sure, but perhaps the benefits are better?

I think how being salaried versus hourly affects you might come down to the culture of the place you're working and your boss. Will you be in the same job? Are there a mix of salary/hourly employees now that you could look at, to see if it affects the time they put in?

Where I'm at, we're all salaried at this point (I believe a few people were contractors, so paid hourly, at one point, but they've all been brought on now.)

We have an incredibly amount of flexibility - so we might work extra hours during an important crunch to make a deadline, but we also have downtime without as much to do (to do training, for example), and flexibility to run out during the day for things like doctor's appointments. Nobody is keeping track of how many hours we're working each day, or making sure we "make up" the time that we're out, we just focus on getting the work done.

We sometimes have events that hourly contractors (who are employed through a contracting company) aren't allowed to attend - I don't fully understand how/why that works, it comes from our leadership (not my immediate manager). But, since you're already hourly, you're probably aware if there are things like that going on around you - these weren't secret or hidden or anything.

And... I seem to remember (from a long time ago) someone telling me that they actually made *less* as a salaried employee, versus hourly contractor. Because they had benefits (paid vacation, sick time, subsidized insurance, etc) as an employee, the actual take-home pay was less. Some of the people on that team chose to remain hourly because they prioritized the pay. But again, I'm not sure if that's the same at the place where you're at...

I hope this helps! I think it's a little hard to know, since it may be very dependent on the individual company... but hopefully if they decided to do this, you'd get more information about pay/benefits and be allowed to choose whether or not to accept the offer.

Good luck!
You can be an hourly full time employee and get the same full benefits that the salaried positions get. Being a contractor is entirely different than being an employee, and hourly vs salary does not make one a contractor and the other an employee.
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Old 12-03-2019, 04:33 AM   #5
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Default Re: Salary verses hourly

I have a salary job. It kinda sucks because they keep giving me more and more work to do with no salary increase. It’s like having multiple jobs and there is no protection of my personal time.
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Old 12-03-2019, 08:51 AM   #6
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Default Re: Salary verses hourly

I have only experienced downsides in being salaried/exempt and would much rather be hourly. Most of the companies I have worked for as a salaried person have been flexible only in the company's favor. Employees are expected to use PTO for appointments but don't get anything extra for working outside of regular hours.

They can't just take away your overtime unless you qualify as an exempt employee. There are federal and state regulations on exempt status and it's worth looking into them or giving the state department of labor a call to make sure your company is allowed to do this. This page looks like it has a lot of detail: Exempt vs. Non-Exempt Employees: Guide to California Law (2019)
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Old 12-04-2019, 10:32 AM   #7
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Default Re: Salary verses hourly

Thanks everyone for the advice and input. I'm already a little miffed at the company. We got bought out in June and my job offer in writing said "accounting manager" but then when things got rolling it was revealed that I was also the office manager and the HR manager and that was not put anywhere in writing. (I don't actually manage any people--I have no direct reports). I don't think my hours would change much, but I wouldn't get over time whereas most of the time I get 3-5 hours of over time per pay period except right now they've cracked down on OT. There does seem to be some negativity towards salary people by upper management in my company when they have doctor's appointments and such. I'm not seeing a lot of upsides. My benefits would stay the same. All the benefits offered to salary employees at my workplace are also offered to hourly employees except those employees who are highly compensated (I'm definitely not one of them) do get the potential for more bonuses though I've only seen that happen once in the six months that the new company has taken over. I don't think I will have a choice, if they choose to make me salary I have to like it or lump it. I'm just trying to figure out if I am going to get the short end of the stick. Thanks so much for all the input and I'll definitely look at the website. Thanks so much. HUGS Kit
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Old 12-04-2019, 11:38 AM   #8
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Default Re: Salary verses hourly

Just wanted to add I have been both salaried and hourly, and prefer hourly because it is fairest in that I am paid my clocked hours. The only downside in hourly I can see is that when money is tight they can ask us to go home early then we do lose money.

If you are going salaried my advice is to keep very good records of your hours worked/breaks taken etc in case you do have a dispute about unpaid overtime. If you do OT as salaried you should either get extra or time off in lieu.
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Old 12-06-2019, 07:08 AM   #9
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Default Re: Salary verses hourly

Typically salaried jobs are the ones that are nearly impossible to calculate actual amount of work people have to do to get work done, work has to be taken home or dine before and after hours and it can’t be even properly calculated. If I was paid hourly they’d have to pay me around 60 hours a week at least. They wouldn’t like that. Lol

Typically hourly jobs are the ones where its easier to measure actual amount of work and work typically isn’t taken home. And every extra work gets compensated.

In my experience those are just different type of jobs.

Nothing to do with benefits or contracts. My husband is RN, hospital employee. I am a high school teacher, employee of a school district. He is hourly and I am salaried just due to nature of our jobs. Nothing to do with contractual position or benefits.
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Old 12-06-2019, 05:10 PM   #10
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Default Re: Salary verses hourly

I understand that they are usually different types of jobs, thanks for pointing that out @divine1966. But my job wouldn't really be changing, just the way I am compensated. They would have to give me a raise because there are rules in CA about how much you have to make to be salary and I am below that threshold. But they wouldn't have to pay me overtime. And since I have a desktop computer at work, there isn't much that I take home with me, although I am always available via cell phone, Skype, email etc. But that's even now when I'm hourly.
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