Why Would an Employee Choose Salary?

As a follow up to Sam’s article earlier this week, here is my take on the Salary vs. Hourly debate.

Employees often talk about how they wished they were on salary. Why? First I am going to examine the pros and Cons of hourly then salary pay and let you discuss which you think is better.

PROS of Hourly Pay
*Employees are paid for every hour in fact every minute that is worked.
*Employees are paid overtime for any hours over 40 per week, and perhaps holiday rates and double time rates depending on the industry.
*Hourly employees have the ability to decide how much work they are going to complete over their required regular hours. An employee can turn down overtime, although it may be detrimental to a career.
*In a business slow down, employee hours may be cut, but the employee is still paid for all hours worked.

CONS of Hourly Pay
*There are no guaranteed minimum hours, so a paycheck can vary from week to week.

PROS of Exempt Salary
*Guaranteed pay check from week to week.

CONS of Exempt Salary
*No payment for overtime. Employers expect salary employees to work a minimum amount of overtime and in some cases an exceptional amount of overtime at no extra pay. It is included in your salary rate.
*Employees average hourly pay will probably be less on salary when the loss of overtime is factored in.
*Employers expect the employee to finish their job assignments regardless of how long it will take them.
*More work will be pushed to the salaried employee since they are getting paid anyway and they don’t have to be paid overtime.
*During a slow down in the business salaried employees will often be given a pay cut and be expected to pick up the slack of hourly employees whose hours have been cut. More work for less money.