How to determine method of wage, hourly or salary

How can you determine the method of wage necessary, hourly or salary? In order to know how to determine the method of wage, hourly or salary, you need to know when each of these is applicable. There are rules that structure the way a person is paid whether it is hourly or salary. Here is how those rules work.

There are laws that exempt certain employees from the standard over time rules. These employees are determined by a specific standard of job duties. Those duties are executive, administrative and professional.

Here are the three main factors to read into this exemption:

The minimum a person who is being paid salary based on the exempt status must be at least twice the amount of the minimum wage that is set at that time. There is also a need for customarily and regular exercise of independent judgment. The final part that is looked at in the decision of is a person is able to be exempt is that they must be doing the executive, administrative, or professional job duties primarily most of the time.

The reason this works this way is because there are some job duties and job descriptions that require strange hours, flexibility and great responsibility. Therefore, there is this process set up for the best interest of the employee and the company they work for.

The executive exemption is for those who are managing the company. It is well accepted that a manager often times works extra hours. However, they are given additional benefits that out weigh the extra hours.

The administrative exemption is for people who work in the office, doing duties that pertain specifically to the office. The main thing about this and being exempt is that their working conditions are usually such that they can take time when needed and have a more relaxed atmosphere.

Finally the professional exemption is for employees who are exempt due to professional licensing. These jobs are usually more artistic or engaged in learned processes. This is allowed for the fact that many times the money out weighs the few extra hours worked.

This really is the case in many of these exempt positions. The salary is usually based on the allowance of a few extra hours. If not many companies still choose to pay overtime on salary,

If your business has any doubts in paying hourly or salary, pay hourly. The best way to know where you stand on this is to ask an attorney. They will be able to tell you where each of your employees stand. The cost for this consultation will be much less than you would pay if there was every a lawsuit brought against your company.

There are some instances that the pay for hourly does not out weighs the pay for salary and vice versa. The main thing to look at is if the hours needed is within reason. Because regardless of laws, you will want your employees to feel valued in order to get the highest level of work you want.

Whether you pay hourly or salary it is a good idea to have expectations set up for sick time, vacation time and planned time off. This needs to be handled within the standards of the law, but also needs to maintain business needs.

This is some of the basic information to help determine if an employee should be paid hourly or salary. It is still a good idea to request the advice of a professional to make sure your company is removed from any added liability.