In agencies where salary and hourly workers are all employed, a move from nonexempt or hourly position to exempt or salary position is seen to be a promotion. Whether such a move is good or bad depends on employees’ expectations. Employees who seek such positions ought to analyze the benefits and drawbacks of such a move. For instance, it should be recognized that salaried workers do not qualify for overtime. The Fair Labor Standards Act states that hourly employees should be paid overtime. Therefore, it should be noted that employees who are moved from hourly to salaried category would no longer be paid overtime in their paycheck (Hayman, 2009).
A salary is advantageous because workers are paid more compared to hourly employees. This makes them lack of overtime inconsequential, though not always. In addition, most salaried jobs have benefits, which hourly employees do not enjoy. These may include among others, flexible schedules, where they can make other appointments such as meeting the doctor without having to lose their pay. Further, salaried employees can work remotely. Salaried employees will be of greater help to the organization. Their job description will be broader, and will have to accomplish the whole job, with outcomes and goals that are less measurable, unlike those of hourly employees. In some instances, there could be a conflict of interest between salaried and hourly employees. Conflicts cause distraction when hourly employees have completed their tasks and salaried employees are yet to complete their daily activities at the workplace.
Classification of Employees
Classifying employees as either hourly or salaried depends on the type of work done by the employees and their status as nonexempt or exempt. The federal government controls classification of employees. Hourly employees work for more than forty hours in a week and may be eligible to be paid. State laws are also responsible for regulating when an employee should be paid and