“To avoid overtime, I’m just going to pay everyone a salary.” We hear this phrase, or other iterations like it, a lot. And we’d love to say it was that easy. So many headaches and problems would just disappear if it were. Of course, it is not that easy (is anything when it comes to government regulations?). Sadly, paying an employee a salary does not, in and of itself, solve the overtime conundrum. If you read no further in this article, know this: salary compensation is just a method of pay. It holds no other power as it relates to tracking employee hours, paying overtime, or having to adhere to other wage & hour laws that may be applicable.
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Salary Pay to Avoid Overtime: Does it Work?
“To avoid overtime, I’m just going to pay everyone a salary.” We hear this phrase, or other iterations like it, a lot. And we’d love to say it was that easy. So many headaches and problems would just disappear if it were. Of course, it is not that easy (is anything when it comes to government regulations?). Sadly, paying an employee a salary does not, in and of itself, solve the overtime conundrum. If you read no further in this article, know this: salary compensation is just a method of pay. It holds no other power as it relates to tracking employee hours, paying overtime, or having to adhere to other wage & hour laws that may be applicable.
Read More