There are two primary types of wages in New York, salary and hourly pay. If you are searching for a new job, it’s important to know the difference between them.
How does salary compare with hourly pay?
There are some differences between salary and hourly pay. Salaried employees are paid a specific amount of money for each pay period and work for a set amount per year. For example, a full-time salaried worker might earn $50,000 per year.
Salary pay doesn’t depend on the number of hours and days the employee works. Employees who earn this type of wage must also be paid at least $455 weekly barring certain exceptions.
By contrast, hourly employees are paid for each hour worked. Their pay must equal at least the federal minimum wage.
Hourly employees are entitled to overtime pay. That pay must be one and a half their normal pay rate for any hours spanning beyond 40 hours per week unless there is an exemption in their position.
What is a salaried employee?
A salaried employee often involves a professional position or managerial role. These workers get various benefits such as sick time, vacation time, health insurance, short-term disability and retirement accounts in the form of a 401(k) or 403(b). The specific benefits package an employee receives depends on the position and company.
Some salaried employees have contracts entitling them to overtime.
What is an hourly employee?
Hourly employees range from unskilled to professional positions and are paid no less than at least the federal minimum wage. They are entitled to overtime work and pay and could be paid weekly, biweekly or even monthly.
Hourly workers who work full-time often get certain protections in their contracts that give them sick leave, vacation pay and holiday pay.
Regardless of whether you get salary or hourly pay, you deserve to be treated fairly and earn a living wage.