Massachusetts Salaried Employee Appraisal Guidelines - General
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FAQ
Salaried employees have a fixed rate of pay, regardless of the number of hours they work, and do not get paid extra for overtime. Hourly employees are given a fixed hourly salary that must be at least the federal minimum wage, paid based on the number of hours worked, and eligible for overtime pay.
Massachusetts is the first state to prohibit potential employers from asking about applicants' salary history before making a job offer. Employees are free to share their salaries with potential employers at any time if they so choose but they cannot be compelled to do so.
Hourly workers are paid an hourly rate for each hour they work and are entitled to overtime pay if they work over 40 hours per week. Salary employees are typically not given overtime pay, but company-provided benefits are often more substantial than those provided to hourly workers.
The biggest factor is if the position is exempt or nonexempt. If they are defined as nonexempt under FLSA, they must be hourly, which takes care of the decision for you. However, you may still want to consider making an exempt employee hourly if there is not enough consistent work for them to be salaried.
Under the new regulations, an employee who is paid a guaranteed salary of not less than $455 per week can be classified as exempt if the employee meets the duties tests for an executive or administrative or professional employee as described below.
Under the new Department of Labor regulations implementing federal overtime law, people earning $107,432 or more in total compensation are considered "highly compensated employees." These individuals are considered exempt if they regularly perform any one of the recognized exempt duties above.
Typically, the employee must have a salary of at least $455 weekly and must be engaged in non-manual work directly related to managing the company or interacting with customers. Some computer and creative professionals are considered exempt employees. Outsides salespeople can be considered exempt.
A salaried employee is paid based on an annual amount, called a salary. A salary is a regular predetermined amount of pay an employee receives each payday, not determined by the quality or quantity of the employee's work.
While there has been no change regarding what duties make one eligible to be exempt and paid a salary, effective January 1, 2020, the minimum weekly salary an employee must receive if he or she is to remain or become exempt will increase from the current minimum of $455 per week to $684 per week -- the annual salary
A salaried employee refers to an employee that gets paid a set amount of compensation for their work instead of an hourly rate. They receive the full amount of pay they're promised, regardless of how many hours they work during a workweek. Typically, salaried employees receive a regular, biweekly or monthly paycheck.
