What is a salaried employee?

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A salaried employee is paid a flat rate, regardless of specific hours worked, unlike hourly employees, who are paid a wage for each hour worked.


Typically, salaried positions are full-time and higher-up within a company, including supervisors, employees working on long-term projects, and employees with lots of experience in their field. However, there aren't set rules regarding what types of jobs may or may not be salaried. It's entirely up to a company to offer a salary for a given position.


A salaried employee agrees to fulfill specific duties in exchange for a set amount of money each year. This means there's room for negotiating a salary with a potential hire before they sign an employment contract. Naturally, well-qualified workers want to make sure they're paid their worth, while employers need to watch out for their bottom line. When setting a salary, consider what a given position is worth to your company, as well as the experience of your candidate.

Final Tips

Salaried employees can be exempt or nonexempt. This classification determines eligibility for overtime, for example, so it's important to know whether your salaried employee is exempt or nonexempt.

Ultimately, it's up to an employer to determine which employees are salaried, and the terms of their salaried position. However, for positions that require a high level of skill or experience, it may be difficult to find qualified employees without offering a competitive salary.

Helpful Links:

What does a Paid Salary Mean? - SmallBusiness.com

Pay Docking for Salaried Employees - FindLaw

Exempt vs. Nonexempt from Overtime Pay - BamLawCa.com

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