Hourly vs. Salary: Which Is Better? – It depends how you define ‘better’ and if the benefits of being a salary employee outweigh those of an hourly worker. One could be better than the other at some companies. Let’s take a look at what exactly this means.
Let’s begin with the Fair Labor Standards Act (FLSA), which governs most jobs, employees are either “exempt” or “nonexempt.” Nonexempt employees are typically paid by the hour and are entitled to overtime pay if they work more than 40 hours per week. Exempt employees, on the other hand, do not get overtime pay.
Let’s compare it with Hourly Wage:
The drawbacks? If your place of business closes early or decides to cut back on hours, that means a smaller paycheck. The likelihood of that happening depends on the industry and the company. A 9-to-5 office job is likely to have a set schedule, whereas a job working in retail might fluctuate more.
Let’s compare it with Salary job:
The downside is that if a salaried position demands more than 40 hours per week and working on holidays, you won’t get paid extra for your time.