A Glossary of HR Terminology
Glossary of Human Resources Management and Employee Benefit Terms
Glossary of Human Resources Management and Employee Benefit Terms
HR Wordbook > Salaried Employee
A salaried employee (considered an exempt* employee) is someone who receives a fixed amount of pay (salary) regardless of how many hours they work each week. This means a salaried employee is paid for 40 hours a week, even if they work fewer hours. Additionally, overtime pay of time-and-a-half is not usually offered for working more than 40 hours per week.
Salaried employees do not legally have to clock in and most employers don’t require it. This is because salaried employers are often offered a higher level of trust and accountability than hourly-paid employees. Additionally, many salaried workers carry out odd and sporadic hours both at the office, at home, and while traveling for business so it can be burdensome to record time on and off the job.
Salaried employees cannot have their pay deducted by their employer if they work less than 40 hours per week or the employee may be seen as non-exempt and entitled to overtime compensation when working more than 40 hours a week. However, if an employee takes personal time (not for sickness or disability) then that time may be deducted from the employee’s allotted vacation/personal time.
An exempt salaried employee is typically expected to work between 40 and 50 hours per week, although some employers expect as few or as many hours of work it takes to perform the job well.
Yes, a salaried employee may refuse to work overtime, but it may violate the set terms and conditions of employment and the employer may terminate an employee for the refusal. Note that most salaried employees are also not paid overtime pay, regardless of how many hours they work in a week.
Employers can deduct the following items from a salaried employee’s salary